Exxon Mobil – Key Insights for Investors

Exxon Mobil returned losses of -13.5% last year, with its stock price reaching a high of $120.7 and a low of $95.77. Over the same period, the stock underperformed the S&P 500 index by -34.6%. As of April 2023, the company's 50-day average price was $101.29 and today it is trading at a price of $97.92 per share. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas in the United States and internationally. Based in Spring, TX, the large-cap Energy company has 62,000 full time employees. Exxon Mobil has offered a 3.7% dividend yield over the last 12 months.

Strong Revenue Growth With no capital expenditures:

2018 2019 2020 2021 2022 2023
Revenue (MM) $290,212 $264,938 $181,502 $285,640 $413,680 $355,667
Revenue Growth n/a -8.71% -31.49% 57.38% 44.83% -14.02%
Operating Margins 11% 8% -16% 11% 19% 17%
Net Margins 7% 5% -12% 8% 13% 12%
Net Income (MM) $20,840 $14,340 -$22,440 $23,040 $55,740 $41,130
Net Interest Expense (MM) $766 $830 $1,158 $947 $798 $784
Depreciation & Amort. (MM) $18,745 $18,998 $46,009 $20,607 $24,040 $17,965
Earnings Per Share $4.88 $3.36 -$5.25 $5.39 $13.26 $10.07
EPS Growth n/a -31.15% -256.25% 202.67% 146.01% -24.06%
Diluted Shares (MM) 4,237 4,235 4,232 4,233 4,234 4,071
Free Cash Flow (MM) $16,440 $5,355 -$2,614 $36,053 $58,390 $37,834
Capital Expenditures (MM) $19,574 $24,361 $17,282 $12,076 $18,407 $21,474
Current Ratio 0.84 0.78 0.8 1.04 1.41 1.42
Total Debt (MM) $37,796 $46,920 $67,640 $47,704 $41,193 $41,253
Net Debt / EBITDA 0.7 1.12 3.69 0.79 0.11 0.11

Exxon Mobil has generally positive cash flows, a strong EPS growth trend, and healthy leverage levels. Furthermore, Exxon Mobil has weak operating margins with a positive growth rate and just enough current assets to cover current liabilities.

Exxon Mobil's Valuation Is in Line With Its Sector Averages:

Exxon Mobil has a trailing twelve month P/E ratio of 10.1, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $8.92, the company has a forward P/E ratio of 11.4. The 9.0% compound average growth rate of Exxon Mobil's historical and projected earnings per share yields a PEG ratio of 1.12. This implies that the shares are fairly valued. The market is placing a fair value on Exxon Mobil's equity, since its P/B ratio of 1.94 is comparable to its sector average of 1.78. The company's shares are currently trading -7.1% below their Graham number.

Exxon Mobil Has an Average Rating of Buy:

The 22 analysts following Exxon Mobil have set target prices ranging from $105.0 to $149.0 per share, for an average of $125.12 with a buy rating. As of April 2023, the company is trading -19.0% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

Exxon Mobil has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 60.5% 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 $37,919,924,370.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.