EXXON MOBIL CORP (1XOM.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1XOM - US30231G1022 - Common Stock
117.36 EUR
+3.62 (+3.18%)
We assign a fundamental rating of 5 out of 10 to 1XOM. 1XOM was compared to 71 industry peers in the Oil, Gas & Consumable Fuels industry. While 1XOM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1XOM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1XOM was profitable.
- In the past year 1XOM had a positive cash flow from operations.
- Of the past 5 years 1XOM 4 years were profitable.
- In the past 5 years 1XOM always reported a positive cash flow from operatings.
1.2 Ratios
- 1XOM has a better Return On Assets (6.59%) than 80.28% of its industry peers.
- 1XOM's Return On Equity of 11.50% is fine compared to the rest of the industry. 1XOM outperforms 64.79% of its industry peers.
- 1XOM has a Return On Invested Capital of 7.29%. This is in the better half of the industry: 1XOM outperforms 70.42% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1XOM is above the industry average of 8.91%.
- The 3 year average ROIC (11.97%) for 1XOM is well above the current ROIC(7.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.59% | ||
| ROE | 11.5% | ||
| ROIC | 7.29% |
ROA(3y)10.7%
ROA(5y)6.43%
ROE(3y)19.64%
ROE(5y)11.66%
ROIC(3y)11.97%
ROIC(5y)N/A
1.3 Margins
- 1XOM has a Profit Margin (9.22%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1XOM has grown nicely.
- 1XOM has a Operating Margin (11.87%) which is comparable to the rest of the industry.
- 1XOM's Operating Margin has improved in the last couple of years.
- 1XOM has a worse Gross Margin (29.97%) than 70.42% of its industry peers.
- In the last couple of years the Gross Margin of 1XOM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.87% | ||
| PM (TTM) | 9.22% | ||
| GM | 29.97% |
OM growth 3Y11.67%
OM growth 5Y16.33%
PM growth 3Y6.04%
PM growth 5Y12.09%
GM growth 3Y-1.5%
GM growth 5Y0.14%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1XOM is still creating some value.
- The number of shares outstanding for 1XOM has been increased compared to 1 year ago.
- Compared to 5 years ago, 1XOM has more shares outstanding
- 1XOM has a better debt/assets ratio than last year.
2.2 Solvency
- 1XOM has an Altman-Z score of 4.28. This indicates that 1XOM is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.28, 1XOM belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
- 1XOM has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
- The Debt to FCF ratio of 1XOM (1.77) is better than 87.32% of its industry peers.
- 1XOM has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- With an excellent Debt to Equity ratio value of 0.13, 1XOM belongs to the best of the industry, outperforming 81.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 4.28 |
ROIC/WACC0.86
WACC8.46%
2.3 Liquidity
- 1XOM has a Current Ratio of 1.14. This is a normal value and indicates that 1XOM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.14, 1XOM is not doing good in the industry: 64.79% of the companies in the same industry are doing better.
- A Quick Ratio of 0.79 indicates that 1XOM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.79, 1XOM is not doing good in the industry: 71.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- 1XOM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.19%.
- The Earnings Per Share has been growing by 26.13% on average over the past years. This is a very strong growth
- The Revenue has decreased by -4.40% in the past year.
- 1XOM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.83% yearly.
EPS 1Y (TTM)-19.19%
EPS 3Y13.13%
EPS 5Y26.13%
EPS Q2Q%-2.08%
Revenue 1Y (TTM)-4.4%
Revenue growth 3Y7.03%
Revenue growth 5Y5.83%
Sales Q2Q%-5.25%
3.2 Future
- Based on estimates for the next years, 1XOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.06% on average per year.
- The Revenue is expected to decrease by -0.55% on average over the next years.
EPS Next Y-10.08%
EPS Next 2Y-4.39%
EPS Next 3Y4.23%
EPS Next 5Y8.06%
Revenue Next Year-5.2%
Revenue Next 2Y-4.34%
Revenue Next 3Y-0.75%
Revenue Next 5Y-0.55%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1XOM is valuated rather expensively with a Price/Earnings ratio of 20.23.
- The rest of the industry has a similar Price/Earnings ratio as 1XOM.
- When comparing the Price/Earnings ratio of 1XOM to the average of the S&P500 Index (28.39), we can say 1XOM is valued slightly cheaper.
- A Price/Forward Earnings ratio of 19.74 indicates a rather expensive valuation of 1XOM.
- Based on the Price/Forward Earnings ratio, 1XOM is valued a bit more expensive than the industry average as 60.56% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of 1XOM to the average of the S&P500 Index (25.72), we can say 1XOM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 19.74 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1XOM.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1XOM indicates a slightly more expensive valuation: 1XOM is more expensive than 64.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.93 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
- 1XOM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-4.39%
EPS Next 3Y4.23%
5. Dividend
5.1 Amount
- 1XOM has a Yearly Dividend Yield of 3.48%. Purely for dividend investing, there may be better candidates out there.
- 1XOM's Dividend Yield is comparable with the industry average which is at 5.24.
- 1XOM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.48% |
5.2 History
- The dividend of 1XOM has a limited annual growth rate of 3.02%.
Dividend Growth(5Y)3.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1XOM pays out 57.54% of its income as dividend. This is a bit on the high side, but may be sustainable.
- 1XOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.54%
EPS Next 2Y-4.39%
EPS Next 3Y4.23%
EXXON MOBIL CORP / 1XOM.MI FAQ
What is the ChartMill fundamental rating of EXXON MOBIL CORP (1XOM.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1XOM.MI.
What is the valuation status of EXXON MOBIL CORP (1XOM.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to EXXON MOBIL CORP (1XOM.MI). This can be considered as Overvalued.
What is the profitability of 1XOM stock?
EXXON MOBIL CORP (1XOM.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for 1XOM stock?
The financial health rating of EXXON MOBIL CORP (1XOM.MI) is 6 / 10.
What is the earnings growth outlook for EXXON MOBIL CORP?
The Earnings per Share (EPS) of EXXON MOBIL CORP (1XOM.MI) is expected to decline by -10.08% in the next year.