Exxon Mobil Yields 4% and Appears to be a Bargain

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Exxon Mobil ($NYSE:XOM) is one of the largest publicly traded companies in the world, and its stock is currently yielding nearly 4%. It has a strong portfolio of oil and gas assets, diversified production, and an established history of delivering reliable dividend payments. The company is also one of the most diversified integrated energy companies, with operations in oil and natural gas, refining, chemicals, and alternative energy sources. Despite its strong track record and promising outlook, the stock appears to be undervalued compared to its peers. For investors looking for a high yield and potential for capital appreciation, Exxon Mobil may be an attractive option. The company’s share price has lagged behind its peers over the past year or so, meaning that it could be poised for a rebound.

Furthermore, the company has a long history of paying out reliable dividends which currently stands at 4%. This makes the stock an attractive option for income investors seeking a relatively safe way to generate income from their portfolios. Overall, Exxon Mobil appears to be undervalued compared to its peers, offering a yield of nearly 4%. The company has a strong track record of paying reliable dividends as well as an impressive portfolio of oil and gas assets. For investors looking for a high dividend yield and potential for capital appreciation, Exxon Mobil may prove to be a good bargain.

Analysis

At GoodWhale, we analyze financials of EXXON MOBIL to assess its long-term sustainability. Using our Star Chart, we have found EXXON MOBIL to have a strong dividend, medium assets, growth, and profitability. This indicates that EXXON MOBIL is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given its high health score of 10/10 with respect to cashflows and debt, EXXON MOBIL is capable of sustaining future operations even in times of crisis. This makes it a great investment option for conservative investors who are looking to generate a steady stream of income from dividends on the stock market. Similarly, more risk-tolerant investors can benefit from EXXON MOBIL’s solid performance and moderate growth potential. More…

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…

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 large and well-established oil and gas company, and is currently trading at a 4% yield. This suggests that the stock is undervalued, meaning it may be a good opportunity for long-term investors. Analysts suggest that the company’s strong financial position and strong cash flow make it an attractive option for investors.

Additionally, Exxon Mobil has a diversified portfolio of assets, and its dividend policy is solid. The company also has a strong history of consistent dividend payments, which could indicate potential for future growth.