Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products.
Last Price: $88.36
Highlights:
Exxon Mobil is the world's largest publicly traded integrated oil company and the largest producer of natural gas in the United States with a daily production of 3,712 mmcf.
The stock closed yesterday’s trading session at $88.36. In the past year, the stock has hit a 52-week low of $77.13 and 52-week high of $93.67. Technical indicators for the stock are bullish. XOM has a market cap of $397.80 billion and is part of the basic materials sector.
BALANCE SHEET
XOM profit in the fourth quarter was $9.95 billion, or $2.20 per share, compared with $9.4 billion, or $1.97 per share, in the same period a year earlier. Oil and gas output fell 5.2 percent to 4.29 million barrels oil equivalent per day, Exxon said. Profit at Exxon's exploration and production business fell 12% to $7.76 billion. At its chemicals unit, profit more than doubled to $958 million, and refining earnings were $1.77 billion, up sharply from $425 million a year earlier.
VALUATION
XOM PE stands at 9.11 below the industry’s average of 9.87. The stock is currently trading 6% below its intrinsic value of $93.90 this suggests that the stock is undervalued at these levels. XOM's current Price/Sales of 0.88 is above the average of its industry of 0.87. The beta of 0.85 implies lower volatility of the stock with respect to the S&P 500. The firm pays a 2.60% annual dividend yield. XOM’s Total Debt/Equity is 8% and is acceptable for our model.
My view:
The company has demonstrated neutral technical signs. The current P/E ratio of 9.11 and dividend yield of 2.60% makes this stock very attractive for value investors. XOM stock is 4.29% higher year to date.
I will buy the stock and keep it my portfolio as a long term investment and not for trading.