Exxon Mobil Corp (NYSE: XOM)

Sector: Energy Industry: Oil & Gas Integrated CIK: 0000034088
Market Cap 630.73 Bn
P/B 3.49
P/E 18.39
P/S 1.45
ROIC (Qtr) 10.21
Div Yield % 2.51
Rev 1y % (Qtr) -5.25
Total Debt (Qtr) 42.04 Bn
Debt/Equity (Qtr) 0.16
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About

Investment thesis

Bull case

  • Strong operating cash flow of 51.52B provides robust 1.23x coverage of total debt 42.04B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 454.34B provides 10.81x coverage of total debt 42.04B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 51.52B provides exceptional 44.53x coverage of minority interest expenses 1.16B, showing strong core operations.
  • Operating cash flow of 51.52B provides exceptional 69.91x coverage of interest expenses 737M, showing strong debt service capability.
  • Strong operating cash flow of 51.52B provides 4.81x coverage of SG&A expenses 10.72B, showing efficient operational cost management.

Bear case

  • Operating cash flow of 51.52B barely covers its investment activities of (23.05B), with a coverage ratio of -2.24, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 51.52B provides thin coverage of dividend payments of (17.24B) with a -2.99 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (23.05B) provide weak support for R&D spending of 650M, which is -35.46x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 13.87B provide limited coverage of acquisition spending of (3.23B), which is -4.29x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 42.63B show weak coverage of depreciation charges of 24.86B, with a 1.71 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Oil & Gas Integrated
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 XOM Exxon Mobil Corp 630.73 Bn 18.39 1.45 42.04 Bn
2 CVX Chevron Corp 360.16 Bn 29.26 2.14 41.54 Bn
3 TTE TotalEnergies SE 172.29 Bn 13.13 0.94 61.42 Bn
4 IMO Imperial Oil Ltd 99.73 Bn 51.19 4.54 2.90 Bn
5 BP Bp Plc 98.37 Bn 1,788.57 0.51 72.53 Bn
6 SU Suncor Energy Inc 67.22 Bn 15.56 1.87 10.59 Bn
7 CVE Cenovus Energy Inc. 38.97 Bn 17.12 1.04 7.27 Bn
8 NFG National Fuel Gas Co 7.90 Bn 12.06 3.32 2.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.42 1.02
EV to Cash from Ops. EV/CFO 13.49 11.79
EV to Debt EV to Debt 15.37 7.40
EV to EBIT EV/EBIT 11.46 19.95
EV to EBITDA EV/EBITDA 8.64 7.85
EV to Free Cash Flow [EV/FCF] EV/FCF 41.92 46.96
EV to Market Cap EV to Market Cap 1.02 1.30
EV to Revenue EV/Rev 1.48 2.01
Price to Book Value [P/B] P/B 3.49 2.14
Price to Earnings [P/E] P/E 18.39 168.60
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.74 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 57.60 786.52
Dividend per Basic Share Div per Share (Qtr) 3.96 1.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 71.01 37.80
Interest Coverage Int. cover (Qtr) 57.84 42.88
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -17.08 -10.32
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -48.58 32.58
Dividend Growth (1y) % Div 1y % (Qtr) 4.21 -4.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.34 142.66
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -8.77 22.56
EBIT Growth (1y) % EBIT 1y % (Qtr) -13.42 35.32
EBT Growth (1y) % EBT 1y % (Qtr) -13.20 190.68
EPS Growth (1y) % EPS 1y % (Qtr) -14.32 511.78
FCF Growth (1y) % FCF 1y % (Qtr) -27.47 4.66
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -6.86 16.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.73 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.22 0.13
Cash Ratio Cash Ratio (Qtr) 0.18 0.27
Current Ratio Curr Ratio (Qtr) 1.14 1.06
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 0.88
Interest Cover Ratio Int Coverage (Qtr) 57.84 42.88
Times Interest Earned Times Interest Earned (Qtr) 57.84 42.88
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.20 18.39
EBIT Margin % EBIT Margin % (Qtr) 12.79 6.19
EBT Margin % EBT Margin % (Qtr) 12.57 1.30
Gross Margin % Gross Margin % (Qtr) 24.10 30.31
Net Profit Margin % Net Margin % (Qtr) 9.00 -1.26