Exxon Mobil Stock Intrinsic Value – Exxon Mobil Rating Upgraded as Analysts Predict $100 Oil by 2024
January 3, 2024
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Exxon Mobil ($NYSE:XOM) is an American multinational oil and gas company headquartered in Irving, Texas. It is one of the world’s largest companies and one of the most profitable. Recently, analysts have predicted that the price of oil could reach $100 per barrel by 2024, leading to a potential rating upgrade for Exxon Mobil. This would create a “black swan” event, as the company would benefit from higher oil prices. If the prediction proves true, it could result in Exxon Mobil climbing higher in the ranks of the world’s largest companies. Higher oil prices could also lead to increased profits for the company, allowing it to further expand its operations.
For investors, this could be a huge boon as it would mean increased returns and greater financial security. Furthermore, a higher rating for Exxon Mobil could also help to bolster its reputation and increase its brand image. Therefore, if the prediction of $100 oil prices proves true, it could have a major positive impact on Exxon Mobil. It could mean a rating upgrade, increased profits, and potentially greater financial security for investors. Only time will tell if this “black swan” event will come to fruition.
Share Price
On Tuesday, EXXON MOBIL stock opened at $100.9 and closed at $102.4, up by 2.4% from prior closing price of 100.0. The upgrade came as a result of their belief that the company will benefit from rising oil prices in the coming years, with their prediction for $100 oil by 2024. In addition, the analysts also noted that EXXON MOBIL’s integrated model is well-positioned to benefit from higher oil prices. As such, the upgrade has led to an increase in investor confidence in the stock and its long-term potential. Live Quote…
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 |
| 346.17k | 41.13k | 11.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Exxon Mobil. More…
| Operations | Investing | Financing |
| 59.31k | -18.91k | -38.68k |
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 |
| 372.26k | 164.73k | 50.39 |
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 |
| 20.9% | 76.6% | 17.8% |
| FCF Margin | ROE | ROA |
| 10.9% | 19.4% | 10.4% |
Analysis – Exxon Mobil Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of EXXON MOBIL‘s financials to determine its fair value. Using our proprietary Valuation Line, we have calculated that the fair value of EXXON MOBIL stock is around $96.7. Interestingly, the stock is currently being traded at $102.4, which is a fair price that is overvalued by 5.9%. This could be attributed to the market’s perception of EXXON MOBIL’s potential for growth and its current position in the energy sector. More…
Peers
The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.
– Chevron Corp ($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 is a key player in the global energy market. Recently, analysts have suggested that the price of oil could reach $100 by 2024. This is seen as a possible “black swan” event due to the significant volatility and uncertainty surrounding the energy market.
Exxon Mobil has recently seen an upgrade in its stock rating, suggesting that investors are anticipating a positive outcome from the potential price increase. Regardless, investors should remain vigilant and assess their portfolios to ensure they are prepared for whatever outcome ensues.
