Exxon Mobil Intrinsic Value Calculation – Exxon Mobil’s Stock Rises 3.2% in Past Month Amid Strong Financial Performance
October 31, 2024
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Exxon Mobil ($NYSE:XOM) Corporation, commonly known as ExxonMobil, is an American multinational oil and gas corporation. The company is involved in all aspects of the oil and gas industry, from exploration and production to transportation and marketing. Recently, Exxon Mobil’s stock has been on the rise, with a 3.2% increase in the past month. This has caught the attention of investors and market analysts, leading many to question what is behind this upward trend. One possible explanation for this rise could be the company’s strong financial performance. Exxon Mobil has consistently reported strong financial results, even in times of economic uncertainty. This impressive growth can be attributed to higher commodity prices, cost-cutting measures, and a rebound in demand for oil and gas. The company has a healthy cash flow and a low debt-to-equity ratio, which indicates that it has enough liquidity to meet its financial obligations while also having room for future investments and acquisitions. The market’s positive response to Exxon Mobil’s financial performance is not surprising given the current state of the oil and gas industry. With the global economy gradually recovering from the effects of the pandemic, the demand for energy is expected to increase. This will likely benefit companies like Exxon Mobil, which have a strong presence in the industry. With its stable financial position and potential for growth, it is no wonder that investors are showing confidence in this energy giant.
However, as with any investment, it is essential to conduct thorough research and seek professional advice before making any investment decisions.
Analysis – Exxon Mobil Intrinsic Value Calculation
As an analyst at GoodWhale, I have conducted a thorough examination of the fundamentals of EXXON MOBIL. One of the key findings of our analysis is that the fair value of EXXON MOBIL’s share is around $94.7. This value has been calculated using our proprietary Valuation Line, which takes into account various financial metrics and market trends. This indicates that the stock is currently overvalued by approximately 25.5%, as it is currently trading at $118.9. In terms of fundamentals, EXXON MOBIL has a strong balance sheet with a healthy cash position and manageable levels of debt. The company also has a solid track record of generating consistent profits and dividends for its shareholders. However, there are some concerns surrounding the company’s future growth prospects. As the world shifts towards renewable energy sources, the demand for traditional fossil fuels like oil and gas is expected to decline. This could impact EXXON MOBIL’s long-term profitability and potentially lead to a decline in its stock price. In conclusion, while EXXON MOBIL has a strong foundation, its current stock price appears to be overvalued. Investors should carefully consider their investment decisions and take into account both the company’s potential for future growth and any potential risks associated with its industry. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Exxon Mobil. More…
| Total Revenues | Net Income | Net Margin |
| 334.7k | 36.01k | 10.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Exxon Mobil. More…
| Operations | Investing | Financing |
| 55.37k | -19.27k | -34.3k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Exxon Mobil. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 376.32k | 163.78k | 51.57 |
Key Ratios Snapshot
Some of the financial key ratios for Exxon Mobil are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.3% | 76.6% | 16.0% |
| FCF Margin | ROE | ROA |
| 10.0% | 16.6% | 8.9% |
Peers
The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.
– Chevron Corp ($NYSE:CVX)
Chevron is an American energy company with a market cap of 313.46B as of 2022. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including exploration, production, refining, marketing, and transportation. Chevron also has interests in chemicals, mining, and power generation. Chevron’s return on equity was 16.97% as of 2022.
– BP PLC ($LSE:BP.)
HSBC Holdings plc is a British multinational banking and financial services holding company headquartered in London, United Kingdom. It is the world’s fourth-largest bank by total assets and the largest in Europe with total assets of US$2.374 trillion. HSBC traces its origin to a hong in Hong Kong, and its present form was established in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company in 1991. The last surviving member of the Hong Kong banking conglomerate, The Hongkong and Shanghai Banking Corporation Limited, was renamed HSBC Holdings plc in May 1999.
As of March 2018, HSBC is organized into four business groups: Commercial Banking, Global Banking and Markets, Retail Banking and Wealth Management, and HSBC Holdings. HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock Exchange, and is a constituent of the Hang Seng Index and the UK FTSE 100 Index. As of 6 July 2012, it had a market capitalization of £102.7 billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell. It has secondary listings on the New York Stock Exchange, Euronext Paris, and the Bermuda Stock Exchange.
In 2015, HSBC was investigated by the US Senate for allegedly facilitating money laundering for drug cartels and terrorist groups. The allegations date back to 2002 and HSBC’s involvement with Mexican drug lord Osiel Cárdenas Guillén. On 11 December 2015, HSBC agreed to pay US$1.256 billion to settle the charges.
– Hess Corp ($NYSE:HES)
Hess is a leading international independent energy company engaged in the exploration and production of crude oil and natural gas. Hess has a market cap of $37.9 billion as of 2022 and a return on equity of 29.47%. The company has a long history of success in the oil and gas industry, and its operations are primarily focused in the United States, the United Kingdom, Norway, Denmark, Malaysia, and Indonesia. Hess is committed to providing its shareholders with value through a combination of strong operating performance, disciplined capital management, and a commitment to sustainable development.
Summary
Exxon Mobil Corporation’s stock has performed well in the past month, increasing by 3.2%. This may be attributed to strong financials and market conditions. It is important for investors to consider the company’s financial health when making investment decisions. Additionally, monitoring market trends and conditions can provide valuable insight into potential future performance. Overall, Exxon Mobil’s recent stock performance indicates positive market sentiment and strong financials, making it a potentially attractive investment opportunity for those looking to invest in the energy sector.
However, conducting thorough research and analysis is recommended before making any investment decisions.
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