Exxon Mobil Corporation (NYSE: XOM)

[ntrader 10]

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.

[M.A 10]

Company's financials r neutral with a little favor on Buy side. With so many stock choices, to buy as longterm investment, I dun think it is a good time to buy Exxon Mobil. Their performance has been average and in most cases less than previous year performance.

[ntrader 10]

What I also like about XOM is that During the fourth quarter of 2012, Exxon Mobil Corporation purchased 59 million shares of its common stock for the treasury at a gross cost of $5.3 billion. These purchases included $5.0 billion to reduce the number of shares outstanding, with the balance used to acquire shares in conjunction with the company’s benefit plans and programs. The dividend yield is not bad at 2.6% with very low Debt to Equity.

[Vinayak 10]

Really like your fundamental analysis and I agree wholeheartedly with your conclusion.

Also, I want to share here how I found Exxon Mobil Overvalued According To Net Asset Value.

 

I know there are a lot of assumptions in the NAV and the article itself alludes to the flaws in the calculation. But it's a start, don't you think?

[ntrader 10]

Thank you Vinayak,

 

Nice approach on NAV's Exxon Mobil, very interesting research report and very helpful

[Vinayak 10]

Thank you Vinayak,

 

Nice approach on NAV's Exxon Mobil, very interesting research report and very helpful

 

Great to hear! I look forward to discussing more XOM right here.

[ntrader 10]

Here some technical analysis points that i have noticed: XOM is trading in the range of $86.59 - $91.93 in the last 30 days. The stock has been showing support around $87.90 and resistance in the $91.80 range. The stock is trading below the 50-Day Moving Average and below the 200-Day Moving Average. My indicators give a neutral view on XOM.