ExxonMobil XOM
What does ExxonMobil do?
ExxonMobil is one of the largest publicly listed integrated energy companies in the world. The company produces crude oil and natural gas in numerous regions, including the US, Canada and other international locations. It also operates refineries and chemical plants and markets fuels, lubricants and chemical products worldwide.
The business is divided into the segments Upstream, Energy Products, Chemical Products and Specialty Products. Upstream covers exploration and production. Energy Products supplies fuels, aromatics and catalysts as well as licensing services. Chemical Products manufactures olefins, polyolefins and intermediates, while Specialty Products offers lubricants, base oils, waxes, elastomers and resins. Competitively, the company benefits from its size, integration along the value chain, technical expertise in large projects and extensive resources. Competitors include international oil companies such as Chevron, Shell, BP and TotalEnergies.
Score profile
Rank vs. Energy (78 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, ExxonMobil ranks in the middle in the group Energy (4.6/10). On growth, the company ranks above average in the group Energy (6.8/10). On valuation (higher = cheaper), the stock ranks below average in the group Energy (3.8/10). On financial strength, ExxonMobil ranks in the middle in the group Energy (5.9/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 13.2x | 11.8x | better than 34 % |
| Trailing P/E | 16.9x | 13.6x | better than 31 % |
| PEG ratio | 1.3x | 1.1x | better than 40 % |
| EV/EBITDA | 9.0x | 6.8x | better than 29 % |
| Price/sales | 1.7x | 1.7x | better than 47 % |
| Price/book | 2.5x | 1.5x | better than 22 % |
| Revenue growth | 32.6% | 24.7% | better than 62 % |
| Earnings growth | 111.4% | 2.4% | better than 74 % |
| Gross margin | 29.8% | 41.8% | better than 36 % |
| Operating margin | 17.0% | 18.8% | better than 44 % |
| Net margin | 10.5% | 11.3% | better than 46 % |
| Return on equity | 15.5% | 13.9% | better than 60 % |
| Debt/equity | 12.6% | 46.7% | better than 92 % |
| Current ratio | 1.2x | 1.3x | better than 40 % |
| Free cash flow yield | 4.2% | 5.4% | better than 44 % |
| Dividend yield | 2.6% | 2.8% | – |
| Payout ratio | 42.4% | 32.6% | – |
| Beta | 0.14 | 0.69 | – |
Valuation: what is ExxonMobil worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give ExxonMobil a model range of 123.34 USD to 346.61 USD per share.
22 analysts, average rating “Buy”, average price target 185.05 USD (+12.5%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Crude oil and natural gas prices largely determine revenue and earnings in the Upstream business.
- Refining margins and demand for fuels and chemical products shape the results of the downstream segments.
- Production volumes, cost discipline and the efficiency of large projects influence profitability across price cycles.
Risks
- Highly volatile commodity prices can significantly weigh on earnings and cash flow in the short term.
- Climate-related regulation and possible shifts in demand away from fossil fuels threaten the core business in the long term.
- Geopolitical tensions, project delays and environmental or operational accidents can affect production, facilities and reputation.
What to look for with ExxonMobil
Free cash flow relative to capital expenditure and shareholder distributions is informative because the capital-intensive, cyclical business must sustainably support dividends and buybacks.