February 28, 2016
NYSE: XOM
EXXON MOBIL CORP
BUY
A+
A
A-
HOLD
B+
B
Annual Dividend Rate
$2.92
B-
C+
C
Annual Dividend Yield
3.56%
SELL
C-
STOCK PERFORMANCE (%)
3 Mo.
Price Change
0.93
D
Beta
0.88
Sector: Energy
XOM BUSINESS DESCRIPTION
Exxon Mobil Corporation engages in refining and
marketing crude oil and natural gas in the United
States, Canada/South America, Europe, Africa,
Asia, and Australia/Oceania.
D+
D-
E+
E
E-
F
Market Capitalization
$340.6 Billion
Sub-Industry: Integrated Oil & Gas
Weekly Price: (US$)
SMA (50)
HOLD
52-Week Range
$66.55-$90.09
RATING SINCE
03/06/2015
Price as of 2/25/2016
$82.01
Source: S&P
SMA (100)
1 Year
2 Years
105
100
95
90
1 Yr.
-8.48
3 Yr (Ann)
-2.21
12 Mo.
-34.28
-50.34
-49.35
3 Yr CAGR
-17.09
-28.88
-26.51
85
80
GROWTH (%)
Last Qtr
-28.46
-57.69
-57.06
Revenues
Net Income
EPS
RETURN ON EQUITY (%)
XOM
Q4 2015
NA
Q4 2014
18.64
Q4 2013
18.72
75
70
Rating History
BUY
Ind Avg
-1.65
23.34
21.81
S&P 500
12.28
14.59
13.97
HOLD
Volume in Millions
200
100
2014
2015
0
2016
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
P/E COMPARISON
RECOMMENDATION
We rate EXXON MOBIL CORP (XOM) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a
positive or negative performance for this stock relative to most other stocks. The company's strongest point
has been its strong cash flow from operations. At the same time, however, we also find weaknesses
including feeble growth in the company's earnings per share and a generally disappointing performance in
the stock itself.
21.30
45.00
21.53
XOM
Ind Avg
S&P 500
HIGHLIGHTS
Regardless of the drop in revenue, the company managed to outperform against the industry average of
33.0%. Since the same quarter one year prior, revenues fell by 28.4%. Weakness in the company's revenue
seems to have hurt the bottom line, decreasing earnings per share.
2013
2014
Q3 1.01
Q2 1.00
Q1 1.17
Q4 1.56
Q3 1.89
Q2 2.05
Q1 2.10
Q4 1.91
Q3 1.79
Q2 1.55
Q1 2.12
Q4 0.67
EPS ANALYSIS¹ ($)
2015
NA = not available NM = not meaningful
1 Compustat fiscal year convention is used for all fundamental
data items.
The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas
& Consumable Fuels industry average, but is less than that of the S&P 500. The net income has significantly
decreased by 57.7% when compared to the same quarter one year ago, falling from $6,570.00 million to
$2,780.00 million.
The share price of EXXON MOBIL CORP is down 8.48% when compared to where it was trading one year
earlier. This reflects both (a) the trend in the overall market as well as (b) the sharp decline in the company's
earnings per share. The fact that the stock is now selling for less than others in its industry in relation to its
current earnings is not reason enough to justify a buy rating at this time.
EXXON MOBIL CORP has experienced a steep decline in earnings per share in the most recent quarter in
comparison to its performance from the same quarter a year ago. Earnings per share have declined over the
last two years. We anticipate that this should continue in the coming year. During the past fiscal year, EXXON
MOBIL CORP reported lower earnings of $3.85 versus $7.60 in the prior year. For the next year, the market is
expecting a contraction of 31.8% in earnings ($2.63 versus $3.85).
Net operating cash flow has decreased to $4,336.00 million or 41.52% when compared to the same quarter
last year. In conjunction, when comparing current results to the industry average, EXXON MOBIL CORP has
marginally lower results.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 1
February 28, 2016
NYSE: XOM
EXXON MOBIL CORP
Sector: Energy Integrated Oil & Gas Source: S&P
Annual Dividend Rate
$2.92
Annual Dividend Yield
3.56%
PEER GROUP ANALYSIS
-25%
PBR
V
FA
SU
AB
OR
UN
STO
LE
AB
-37.5%
R
VO
FA
Revenue Growth (TTM)
LE
TOT
RDS.A
RDS.B
BP 50%
-200%
EBITDA Margin (TTM)
Companies with higher EBITDA margins and
revenue growth rates are outperforming companies
with lower EBITDA margins and revenue growth
rates. Companies for this scatter plot have a market
capitalization between $19.9 Billion and $340.6
Billion. Companies with NA or NM values do not
appear.
*EBITDA – Earnings Before Interest, Taxes, Depreciation and
Amortization.
52-Week Range
$66.55-$90.09
Price as of 2/25/2016
$82.01
-25%
PBR
V
FA
SU
The Oil, Gas & Consumable Fuels industry is cyclical in nature and is one of the most important globally
because it touches so many others. It is broken down into its component parts by the nature of activity
performed. Upstream activities are related to finding and producing commodities; midstream refers to the
transportation of product from the wellhead to intermediate customers; and, downstream includes the
refining, transformation and marketing of related products. Coal producers are integrated, much like the
players in alternative fuels like uranium. Some of the largest players in the industry are the integrated oil &
gas producers (aka Big Oil).
Close to two-thirds of the world’s energyneeds are satisfied by hydrocarbons (crude oil and natural gas).
Althoughconservation, increased efficiency and substitutes are gaining in prominence,they are not likely to
significantly reduce this dependence in the near future.Crude oil prices have moderated at present due to
lagging economies and newsupplies coming online. In 2004, West Texas Intermediate (WTI) crude oil
brokeout of its historic trading range of $10 to $40 per barrel on a steady climb tomore than $145 per barrel in
June 2008 before crashing to under $40 by the endof 2008. Since then the price of spot crude has climbed
back near the $90 to$110 range before falling again. Natural gas prices, responding to excesssupply, have
retreated to the $2 to $4 range per million BTU (British thermalunit). Coal prices are dependent on the energy
content of the type of coalconsidered and its location, but it, too, has climbed significantly over thepast few
years.
Following nearly 20 years of underinvestment,the supply of crude oil is barely keeping pace with demand.
Longer term demandshould grow at about 1.8% per year, meaning it is expected to grow more than40% over
the next 20 years. Natural gas demand is expected to rise over time,according to the American Petroleum
Institute, as its cleaner-burningproperties increase in value for industry. Coal consumption is projected
togrow at about 1.7% per year over the next 20 years, based on US EnergyInformation Administration
forecasts.
Analysis of companies in this industry beginsby forming a view of the global economy and geopolitics, which
is combined witha supply and demand analysis that leads to commodity price forecasts. At theindividual firm
level, how efficiently a company operates goes a long way indetermining its profitability. Supply management
is an important factor, too,as high commodity prices are affected by how much supply the industry as awhole
produces. Geographic positioning can also be important, as regionaleconomic cycles may not synch up well
with each other.
REVENUE GROWTH AND EARNINGS YIELD
AB
OR
IMO
LE
The so-called “supermajor” integrated oilcompanies include Exxon Mobil (XOM), BP Plc (BP), Chevron (CVX),
Total SA(TOT), and ConocoPhillips (COP). Some of the other major Exploration &Production firms include
Norsk Hydro (NHYDY), Anadarko Petroleum (APC), DevonEnergy (DVN) and Apache (APA). On the Refining &
Marketing level, majorplayers include Valero Energy (VLO), Sunoco (SUN), and Tesoro (TSO). The
majoruranium producer is Cameco (CCJ).
TOT
PEER GROUP: Oil, Gas & Consumable Fuels
UN
LE
AB
-37.5%
R
VO
FA
Revenue Growth (TTM)
Market Capitalization
$340.6 Billion
INDUSTRY ANALYSIS
REVENUE GROWTH AND EBITDA MARGIN*
OXY
Beta
0.88
-40%
XOM
OXY STO
CVX
RDS.A
RDS.B
BP
5%
Earnings Yield (TTM)
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -37.1% and
-25.6%. Companies with NA or NM values do not
appear.
Ticker
XOM
BP
OXY
STO
SU
IMO
PBR
RDS.A
RDS.B
CVX
TOT
Recent
Company Name
Price ($)
EXXON MOBIL CORP
82.01
BP PLC
28.66
OCCIDENTAL PETROLEUM CORP
69.65
STATOIL ASA
13.98
SUNCOR ENERGY INC
24.65
IMPERIAL OIL LTD
31.50
PETROLEO BRASILEIRO SA- PETR
3.50
ROYAL DUTCH SHELL PLC
45.06
ROYAL DUTCH SHELL PLC
45.30
CHEVRON CORP
85.30
TOTAL SA
44.37
Market
Cap ($M)
340,568
88,296
53,194
44,577
35,644
26,699
19,887
179,679
179,679
160,633
108,884
Price/
Earnings
21.30
NM
NM
NM
NM
23.86
NM
75.10
75.50
34.82
20.26
Net Sales
TTM ($M)
238,926.00
222,894.00
12,480.00
52,551.33
29,208.00
25,214.00
108,576.00
264,960.00
264,960.00
122,566.00
143,421.00
Net Income
TTM ($M)
16,150.00
-6,482.00
-7,829.00
-4,235.28
-1,995.00
1,122.00
-8,751.00
1,939.00
1,939.00
4,587.00
5,087.00
The peer group comparison is based on Major Integrated Oil & Gas companies of comparable size.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 2
February 28, 2016
NYSE: XOM
EXXON MOBIL CORP
Sector: Energy Integrated Oil & Gas Source: S&P
Annual Dividend Rate
$2.92
Annual Dividend Yield
3.56%
COMPANY DESCRIPTION
Exxon Mobil Corporation engages in refining and
marketing crude oil and natural gas in the United States,
Canada/South America, Europe, Africa, Asia, and
Australia/Oceania. It also manufactures and markets
commodity petrochemicals, including olefins, aromatics,
polyethylene and polypropylene plastics, and specialty
products; and transports and sells crude oil, natural gas,
and petroleum products. Exxon Mobil Corporation was
formerly known as Exxon Corporation and changed its
name to Exxon Mobil Corporation in November 1999.
Exxon Mobil Corporation was founded in 1870 and is
headquartered in Irving, Texas.
EXXON MOBIL CORP
5959 Las Colinas Boulevard
Irving, TX 75039
USA
Phone: 972-444-1000
http://corporate.exxonmobil.com
Employees: 75000
Beta
0.88
Market Capitalization
$340.6 Billion
52-Week Range
$66.55-$90.09
Price as of 2/25/2016
$82.01
STOCK-AT-A-GLANCE
Below is a summary of the major fundamental and technical factors we consider when determining our
overall recommendation of XOM shares. It is provided in order to give you a deeper understanding of our
rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
valuation. Please refer to our Valuation section on page 5 for further information.
FACTOR
SCORE
0.5
Growth
out of 5 stars
weak
Measures the growth of both the company's income statement and
cash flow. On this factor, XOM has a growth score better than virtually
none of the stocks we rate
strong
2.5
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 40% of the companies we
cover.
strong
4.5
Efficiency
out of 5 stars
weak
Measures the strength and historic growth of a company's return on
invested capital. The company has generated more income per dollar of
capital than 80% of the companies we review.
strong
3.5
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 60% of the stocks we monitor.
strong
5.0
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 90% of the companies we analyze.
strong
4.5
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. The company's
dividend is higher than 80% of the companies we track.
strong
THESTREET RATINGS RESEARCH METHODOLOGY
TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both
price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to
perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 3
February 28, 2016
NYSE: XOM
EXXON MOBIL CORP
Sector: Energy Integrated Oil & Gas Source: S&P
Annual Dividend Rate
$2.92
Annual Dividend Yield
3.56%
Consensus EPS Estimates² ($)
IBES consensus estimates are provided by Thomson Financial
Beta
0.88
Market Capitalization
$340.6 Billion
52-Week Range
$66.55-$90.09
Price as of 2/25/2016
$82.01
FINANCIAL ANALYSIS
Sales and net income fell significantly, but still managed to outperform when compared to the average
company in its industry.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
0.35
Q1 FY16
2.63 E
3.99 E
2016(E)
2017(E)
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Q4 FY15
54,437.00
NA
NA
2,780.00
Q4 FY14
76,085.00
9,960.00
5,502.00
6,570.00
Q4 FY15
3,700.00
NA
38,700.00
NA
Q4 FY14
4,658.00
349,493.00
29,121.00
174,399.00
Q4 FY15
NA
NA
NA
NA
NA
NA
Q4 FY14
17.91%
13.09%
7.23%
1.04
9.30%
18.64%
Q4 FY15
NA
NA
NA
NA
Q4 FY14
0.82
0.14
68.00
80.91
Q4 FY15
4,156
0.73
0.67
NA
NA
18,582,961
Q4 FY14
4,201
0.69
1.56
41.51
NA
14,259,220
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 4
February 28, 2016
NYSE: XOM
EXXON MOBIL CORP
Sector: Energy Integrated Oil & Gas Source: S&P
Annual Dividend Rate
$2.92
Annual Dividend Yield
3.56%
Beta
0.88
Market Capitalization
$340.6 Billion
52-Week Range
$66.55-$90.09
Price as of 2/25/2016
$82.01
VALUATION
HOLD. The current P/E ratio indicates a significant discount compared to an average of 45.00 for the Oil, Gas
& Consumable Fuels industry and a value on par with the S&P 500 average of 21.53. The price-to-sales ratio is
below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and
other key valuation criteria, EXXON MOBIL CORP proves to trade at a discount to investment alternatives
within the industry.
2 Year Chart
$110
Price/Earnings
$100
XOM 21.30
Peers 45.00
• Discount. A lower P/E ratio than its peers can
signify a less expensive stock or lower growth
expectations.
• XOM is trading at a significant discount to its peers.
HOLD: $85.63
BUY: $96.31
RATINGS HISTORY
Our rating for EXXON MOBIL CORP has not
changed since 3/6/2015. As of 2/25/2016, the stock
was trading at a price of $82.01 which is 9.0% below
its 52-week high of $90.09 and 23.2% above its
52-week low of $66.55.
$90
$80
2014
2015
1
2
3
premium
Price/Projected Earnings
1
2
From
Buy
Buy
To
Hold
Buy
5
3
4
5
XOM 20.55
Peers 23.35
• Premium. A higher price-to-projected earnings ratio
than its peers can signify a more expensive stock
or higher future growth expectations.
• XOM is trading at a significant premium to its peers.
(as of 2/25/2016)
32.19% Buy - We believe that this stock has the
opportunity to appreciate and produce a total return of
more than 10% over the next 12 months.
35.29% Hold - We do not believe this stock offers
conclusive evidence to warrant the purchase or sale of
shares at this time and that its likelihood of positive total
return is roughly in balance with the risk of loss.
32.52% Sell - We believe that this stock is likely to
decline by more than 10% over the next 12 months, with
the risk involved too great to compensate for any
possible returns.
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
Research Contact: 212-321-5381
Sales Contact: 866-321-8726
Price/Book
1
2
3
premium
4
5
Price/Sales
1
2
premium
3
4
5
Price to Earnings/Growth
4
5
discount
1
2
3
premium
4
5
discount
XOM NM
Peers 3.23
• Neutral. The PEG ratio is the stock’s P/E divided by
the consensus estimate of long-term earnings
growth. Faster growth can justify higher price
multiples.
• XOM's negative PEG ratio makes this valuation
measure meaningless.
Earnings Growth
1
2
3
4
lower
5
higher
XOM -49.35
Peers -196.34
• Higher. Elevated earnings growth rates can lead to
capital appreciation and justify higher
price-to-earnings ratios.
• XOM is expected to have an earnings growth rate
that significantly exceeds its peers.
Sales Growth
discount
XOM 1.43
Peers 1.76
• Discount. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
• XOM is trading at a discount to its industry on this
measurement.
3
XOM 11.25
Peers 15.07
• Discount. The P/CF ratio, a stock’s price divided by
the company's cash flow from operations, is useful
for comparing companies with different capital
requirements or financing structures.
• XOM is trading at a significant discount to its peers.
discount
XOM NA
Peers 8.19
• Neutral. A lower price-to-book ratio makes a stock
more attractive to investors seeking stocks with
lower market values per dollar of equity on the
balance sheet.
• Ratio not available.
2
premium
discount
Price reflects the closing price as of the date listed, if available
RATINGS DEFINITIONS &
DISTRIBUTION OF THESTREET RATINGS
1
Price/CashFlow
discount
premium
MOST RECENT RATINGS CHANGES
Date
Price
Action
3/6/15
$85.63 Downgrade
2/25/14
$96.31 No Change
4
1
2
3
lower
4
5
higher
XOM -34.28
Peers -16.02
• Lower. A sales growth rate that trails the industry
implies that a company is losing market share.
• XOM significantly trails its peers on the basis of
sales growth
DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided
via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as
other third-party data providers.
TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided
for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or
other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a
qualified securities professional, before you make any investment. None of the information contained in this report constitutes,
or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a
determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of
the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the
investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at
http://www.thestreet.com/static/about/terms-of-use.html.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracy
or makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.
Report Date: February 28, 2016
PAGE 5