Exxon Mobil Intrinsic Value – Exxon Mobil Reaches a Limit: ‘Trees Don’t Grow To The Sky’

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Recently, the company has been reaching its limits when it comes to growth. The famous phrase, “trees don’t grow to the sky” is an apt metaphor for Exxon Mobil ($NYSE:XOM)’s current situation. While the company has achieved incredible success over the years, there is now an undeniable limit to its growth. Much of this limitation has been attributed to the recent downturn in the oil market due to a variety of different factors. This has caused Exxon Mobil’s stock to drop significantly and has put a damper on the company’s profits.

Additionally, with renewable energy options becoming increasingly viable, Exxon Mobil is facing increased competition from other energy sources. This has further hindered their efforts to expand and reach new heights. Despite these limitations, Exxon Mobil is still a major force in the oil and gas industry. They have established themselves as an industry leader and are still conducting ambitious operations all over the world. Despite their current problems, they have shown that there is no limit to their growth potential and they are committed to continuing to be an integral part of the energy industry.

Price History

On Friday, the stock of Exxon Mobil reached a limit with the opening price of $106.3 before closing at $105.8. This marked an ominous sign for the oil giant as investors realized that ‘trees don’t grow to the sky’. Despite being the world’s most valuable publicly traded company, Exxon Mobil has seen its stock decline steadily over the last five years. This is likely due to the decline in global crude prices, as well as increased competition from renewable energy sources.

Additionally, the company’s response to environmental regulations has been lukewarm at best, leaving their long-term prospects uncertain. As a result, Exxon Mobil has reached its limit and investors are beginning to recognize this. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Exxon Mobil. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Exxon Mobil. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Exxon Mobil. More…

Key Ratios Snapshot

Some of the financial key ratios for Exxon Mobil are shown below. More…

Analysis – Exxon Mobil Intrinsic Value

At GoodWhale, we have conducted an analysis of EXXON MOBIL‘s wellbeing in the market. Our proprietary Valuation Line revealed that the intrinsic value of EXXON MOBIL share is estimated to be around $101.4. Currently, EXXON MOBIL stock is traded at $105.8, which is a fair price, overvalued by 4.3%. We believe the current price is slightly higher than the intrinsic value of EXXON MOBIL stock, but still a fair value for the investor. More…

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 (XOM) is a large integrated oil and gas company with operations across the globe. It is among the world’s leading oil and gas producers and refiners. Investors have long been attracted to Exxon because of its exceptional operating history, strong balance sheet and attractive dividend yield. Its long-term track record of reliable performance, attractive dividend, and solid balance sheet have made it one of the most attractive stocks for investors. The company has adopted “Trees Don’t Grow To The Sky” as its investment philosophy.

This means that the firm believes in maintaining dividend yields within reasonable levels and avoiding excessive debt. It also follows a disciplined approach to cost control and capital allocation, resulting in strong financial performance, even through periods of low oil prices. Exxon’s focus on disciplined cost management and efficient capital allocation has enabled it to generate competitive returns for its shareholders, even in difficult market conditions.