Now trading at a price of $105.29, Exxon Mobil has moved -1.2% so far today.
Exxon Mobil returned gains of 19.0% last year, with its stock price reaching a high of $119.92 and a low of $83.89. Over the same period, the stock outperformed the S&P 500 index by 9.0%. More recently, the company's 50-day average price was $105.01. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. Based in Irving, TX, the large-cap Energy company has 62,000 full time employees. Exxon Mobil has not offered a dividend during the last year.
Overview of the Company's Finances:
| 2020-02-26 | 2021-02-24 | 2022-02-23 | 2023-02-22 | |
|---|---|---|---|---|
| Revenue (MM) | $259,497 | $179,770 | $278,983 | $402,217 |
| Gross Margins | 30.4% | 30.8% | 31.5% | 32.5% |
| Operating Margins | 17.7% | -1.9% | 20.0% | 23.6% |
| Net Margins | 5.53% | -12.48% | 8.26% | 13.86% |
| Net Income (MM) | $14,340 | -$22,440 | $23,040 | $55,740 |
| Net Interest Expense (MM) | -$830 | -$1,158 | -$947 | -$798 |
| Depreciation & Amort. (MM) | -$18,998 | -$46,009 | -$20,607 | -$24,040 |
| Earnings Per Share | $3.36 | -$5.25 | $5.39 | $14.77 |
| EPS Growth | n/a | -256.25% | 202.67% | 174.03% |
| Diluted Shares (MM) | 4,270 | 4,271 | 4,275 | 4,043 |
| Free Cash Flow (MM) | $54,077 | $31,950 | $60,205 | $95,204 |
| Capital Expenditures (MM) | -$24,361 | -$17,282 | -$12,076 | -$18,407 |
| Net Current Assets (MM) | -$113,607 | -$123,727 | -$104,086 | -$68,963 |
| Current Ratio | 0.78 | 0.8 | 1.04 | 1.41 |
| Long Term Debt (MM) | $26,342 | $47,182 | $43,428 | $40,559 |
| Net Debt / EBITDA | 1.52 | 2.08 | 1.11 | 0.19 |
Exxon Mobil has exceptional EPS growth and low leverage. Additionally, the company's financial statements display growing revenues and decreasing reinvestment in the business and consistent free cash flow. However, the firm has slimmer gross margins than its peers. Finally, we note that Exxon Mobil has average net margins with a positive growth rate and just enough current assets to cover current liabilities.
A Very Low P/E Ratio but Trades Above Its Graham Number:
Exxon Mobil has a trailing twelve month P/E ratio of 7.1, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of $8.71, the company has a forward P/E ratio of 12.1. According to the 21.0% compound average growth rate of Exxon Mobil's historical and projected earnings per share, the company's PEG ratio is 0.34. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.3%. On this basis, the company's PEG ratio is 0.69. This suggests that its shares are undervalued. In contrast, Exxon Mobil is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.2 is higher than the sector average of 1.68. The company's shares are currently trading 50.2% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for Exxon Mobil:
The 21 analysts following Exxon Mobil have set target prices ranging from $107.0 to $146.0 per share, for an average of $123.04 with a buy rating. As of April 2023, the company is trading -14.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Exxon Mobil has a very low short interest because 0.7% of the company's shares are sold short. Institutions own 60.7% of the company's shares, and the insider ownership rate stands at 0.06%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $41,372,329,719.
