EXXON MOBIL CORP (XOM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:XOM - US30231G1022 - Common Stock
134.97 USD
+1.33 (+1%)
135.45 USD
+0.48 (+0.36%)
Overall XOM gets a fundamental rating of 5 out of 10. We evaluated XOM against 207 industry peers in the Oil, Gas & Consumable Fuels industry. XOM has an average financial health and profitability rating. XOM does not seem to be growing, but still is valued expensively. Finally XOM also has an excellent dividend rating. These ratings would make XOM suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year XOM was profitable.
- In the past year XOM had a positive cash flow from operations.
- Of the past 5 years XOM 4 years were profitable.
- XOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- XOM has a Return On Assets of 6.59%. This is in the better half of the industry: XOM outperforms 74.88% of its industry peers.
- Looking at the Return On Equity, with a value of 11.50%, XOM is in the better half of the industry, outperforming 68.12% of the companies in the same industry.
- The Return On Invested Capital of XOM (7.29%) is better than 66.18% of its industry peers.
- XOM had an Average Return On Invested Capital over the past 3 years of 11.97%. This is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (7.29%) for XOM is well below the 3 year average (11.97%), which needs to be investigated, but indicates that XOM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 11.5% | ||
| ROIC | 7.29% |
ROA(3y)10.7%
ROA(5y)6.43%
ROE(3y)19.64%
ROE(5y)11.66%
ROIC(3y)11.97%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of XOM (9.22%) is comparable to the rest of the industry.
- XOM's Profit Margin has improved in the last couple of years.
- XOM has a Operating Margin (11.87%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of XOM has grown nicely.
- XOM has a Gross Margin (29.97%) which is comparable to the rest of the industry.
- XOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.87% | ||
| PM (TTM) | 9.22% | ||
| GM | 29.97% |
OM growth 3Y11.67%
OM growth 5Y16.33%
PM growth 3Y6.04%
PM growth 5Y12.09%
GM growth 3Y-1.5%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
- XOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, XOM has more shares outstanding
- Compared to 5 years ago, XOM has more shares outstanding
- Compared to 1 year ago, XOM has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.25 indicates that XOM is not in any danger for bankruptcy at the moment.
- XOM has a better Altman-Z score (4.25) than 86.96% of its industry peers.
- XOM has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
- XOM has a Debt to FCF ratio of 1.77. This is amongst the best in the industry. XOM outperforms 85.02% of its industry peers.
- A Debt/Equity ratio of 0.13 indicates that XOM is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.13, XOM is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 4.25 |
ROIC/WACC0.86
WACC8.49%
2.3 Liquidity
- XOM has a Current Ratio of 1.14. This is a normal value and indicates that XOM is financially healthy and should not expect problems in meeting its short term obligations.
- XOM has a Current ratio of 1.14. This is comparable to the rest of the industry: XOM outperforms 49.76% of its industry peers.
- A Quick Ratio of 0.79 indicates that XOM may have some problems paying its short term obligations.
- XOM has a worse Quick ratio (0.79) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- The earnings per share for XOM have decreased strongly by -19.19% in the last year.
- The Earnings Per Share has been growing by 26.13% on average over the past years. This is a very strong growth
- The Revenue has decreased by -4.40% in the past year.
- Measured over the past years, XOM shows a small growth in Revenue. The Revenue has been growing by 5.83% on average per year.
EPS 1Y (TTM)-19.19%
EPS 3Y13.13%
EPS 5Y26.13%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)-4.4%
Revenue growth 3Y7.03%
Revenue growth 5Y5.83%
Sales Q2Q%-5.25%
3.2 Future
- XOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.06% yearly.
- Based on estimates for the next years, XOM will show a decrease in Revenue. The Revenue will decrease by -0.55% on average per year.
EPS Next Y-10.22%
EPS Next 2Y-4.05%
EPS Next 3Y4.72%
EPS Next 5Y8.06%
Revenue Next Year-5.28%
Revenue Next 2Y-3.76%
Revenue Next 3Y-0.59%
Revenue Next 5Y-0.55%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.42, XOM is valued on the expensive side.
- XOM's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, XOM is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 18.82, XOM is valued on the expensive side.
- XOM's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of XOM to the average of the S&P500 Index (24.26), we can say XOM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.42 | ||
| Fwd PE | 18.82 |
4.2 Price Multiples
- XOM's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as XOM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.94 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
- XOM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-4.05%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
- XOM has a Yearly Dividend Yield of 3.48%.
- XOM's Dividend Yield is comparable with the industry average which is at 3.75.
- Compared to an average S&P500 Dividend Yield of 1.82, XOM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- The dividend of XOM has a limited annual growth rate of 3.02%.
- XOM has been paying a dividend for at least 10 years, so it has a reliable track record.
- XOM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.02%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- XOM pays out 57.54% of its income as dividend. This is a bit on the high side, but may be sustainable.
- XOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.54%
EPS Next 2Y-4.05%
EPS Next 3Y4.72%
EXXON MOBIL CORP / XOM FAQ
What is the ChartMill fundamental rating of EXXON MOBIL CORP (XOM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to XOM.
Can you provide the valuation status for EXXON MOBIL CORP?
ChartMill assigns a valuation rating of 3 / 10 to EXXON MOBIL CORP (XOM). This can be considered as Overvalued.
How profitable is EXXON MOBIL CORP (XOM) stock?
EXXON MOBIL CORP (XOM) has a profitability rating of 6 / 10.
What are the PE and PB ratios of EXXON MOBIL CORP (XOM) stock?
The Price/Earnings (PE) ratio for EXXON MOBIL CORP (XOM) is 19.42 and the Price/Book (PB) ratio is 2.18.
What is the expected EPS growth for EXXON MOBIL CORP (XOM) stock?
The Earnings per Share (EPS) of EXXON MOBIL CORP (XOM) is expected to decline by -10.22% in the next year.