July 28, 2012
Exxon Mobil Corp.
XOM-US USD 85.24
Industry Group:
52 Week Range:
Market Cap:
Integrated Oil
USD 67.03 - USD 87.94
USD 398,596.00 Mil.
Scores
Data as of Last Available Filing
Fundamental Analysis
88
Annual:
Semi Annual:
Quarterly:
Dividend Quality
67
2011-12-31
N/A
2012-03-31
Peer Group
Royal Dutch Shell PLC (CL B) (RDSB-GB)
Chevron Corp. (CVX-US)
BP PLC ADS (BP-US)
Total S.A. ADS (TOT-US)
China Petroleum & Chemical Corp. (386-HK)
Occidental Petroleum Corp. (OXY-US)
ConocoPhillips (COP-US)
Exxon Mobil Corp. (XOM-US)
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Exxon Mobil Corp. | Snapshot | July 28, 2012
1
Company numbers are TTM (trailing twelve months) or latest available. Share price data is previous day's close unless otherwise stated.
Fundamental Analysis
Relative Valuation
P/B above peers
Exxon Mobil Corp. currently trades at a higher Price/Book ratio (2.5) than
its peer median (1.2).
Valuation Drivers
XOM-US outperforms its peers with a relatively high operating
performance and the market also expects faster growth relative to its
peers
Outperforming
Operations Diagnostic
XOM-US has relatively high profit margins while operating with median
asset turns.
Earnings Leverage
Compared with its chosen peers, changes in the company's annual
earnings are better than the changes in its revenue, implying better than
median cost control and/or some economies of scale.
Sustainability of Returns
XOM-US's return on assets currently and over the past five years suggest
that its relatively high operating returns are sustainable.
Sustainable
Drivers of Margin
The company's relatively high gross margin suggests some differentiation
with pricing advantages versus peers.
Growth Expectations
While XOM-US's revenues growth has been around the peer median in
recent years, the market seems to see faster growth ahead and gives its
shares a higher than peer median PE ratio.
Capital Investment Strategy
The company's level of capital investment seems appropriate to support
the company's growth.
Supporting Growth
Leverage & Liquidity
XOM-US has the financial and operating capacity to borrow quickly.
Quick and Able
Corporate Actions
Dividend Action
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While XOM-US has a high quality dividend and a moderate cash cushion,
its relative operating performance is not strong enough to suggest an
increase in the dividend.
Exxon Mobil Corp. | Snapshot | July 28, 2012
2
Equity Action
The company's current share price is not sufficiently lower than its 52week high (currently about 3% below) and does not justify a share
buyback as the best use of cash at this time.
M&A Action
While XOM-US's size alone will not prevent it from becoming a target
in this peer group, its share price could make it a relatively expensive
acquisition.
Though XOM-US has the size (by book value) to acquire other firms,
acquisitions within this peer group might result in a lower market-expected
growth.
Dividend Quality
Dividend Quality
Over the last twelve months, XOM-US paid a high quality dividend, which
represents a yield of 2.3% at the current price.
High Quality
Dividend Quality Trend
Dividend quality trend has not been consistent over the last five years.
Dividends were paid during each of these years -- of these 4 were high
quality and 1 was low quality.
Dividend Coverage
The ending cash balance, with a dividend coverage of 1.4x, provides a
moderate cushion in case of a significant reduction of cash flows in the
future.
Moderate
Earnings Quality
Accounting Quality
XOM-US's net income margin for the last twelve months is around peer
median, which combined with a level of accruals that is also around peer
median suggests there possibly isn't too much accrual movement flowing
into the company's reported earnings.
Management of Reserves
The company's accrual levels over the last twelve months are positive but
around the peer median suggesting the company is recording a proper
level of reserves relative to its peers.
Material Categories
Excluding the effects of change in revenue, the accounting categories
causing the most impact on the movement of net income from the prior
period to the current period are PP&E, SG&A and Accounts Receivable.
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Exxon Mobil Corp. | Snapshot | July 28, 2012
3
Historical Values
Price To Sales
Price To Book
2
Price To Earnings
5
15
1
2.5
0
2007 2008 2009 2010 2011 TTM
XOM- US
0
Peer Median
Gross Margin %
10
5
2007 2008 2009 2010 2011 TTM
XOM- US
Peer Median
2007 2008 2009 2010 2011 TTM
XOM- US
EBIT Margin (% Revenues)
Peer Median
Net Margin %
15
30
10
10
20
10
2007 2008 2009 2010 2011 TTM
XOM- US
5
Peer Median
ROE % (On Common Equity)
7.5
5
2007 2008 2009 2010 2011 TTM
XOM- US
Peer Median
2007 2008 2009 2010 2011 TTM
XOM- US
ROA % (On Total Assets)
Peer Median
Debt to Equity %
20
20
20
10
0
2007 2008 2009 2010 2011 TTM
XOM- US
0
Peer Median
Op. Cash Flow (% Rev)
2007 2008 2009 2010 2011 TTM
XOM- US
0
Peer Median
2007 2008 2009 2010 2011 TTM
XOM- US
Working Capital DSO
Peer Median
Accruals (% Rev)
15
6
20
12.5
10
4
0
2007 2008 2009 2010 2011 TTM
XOM- US
Peer Median
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- 20
2007 2008 2009 2010 2011 TTM
XOM- US
Peer Median
2
2007 2008 2009 2010 2011 TTM
XOM- US
Peer Median
Exxon Mobil Corp. | Snapshot | July 28, 2012
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Company Profile
Exxon Mobil Corp. engages in the exploration and production of natural gas and crude oil. Its principal business
is energy, involving exploration for production of, crude oil and natural gas, manufacture of petroleum products
and transportation and sale of crude oil, natural gas and petroleum products. ExxonMobil is a manufacturer and
marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and
a wide variety of specialty products. It also has interests in electric power generation facilities. Exxon Mobil has
several divisions and hundreds of affiliates that include ExxonMobil, Exxon, Esso and Mobil. It operates through
three reportable business segments: Upstream, Downstream and Chemical. The Upstream segment is organized
and operates to explore for and produce crude oil and natural gas. The Downstream segment is organized
and operates to manufacture and sell petroleum products. It encompasses global network of manufacturing
plants, transportation systems, and distribution centers provides fuels, lubricants, and other high-value products
and feedstocks to customers. The Chemical segment is organized and operates to manufacture and sell
petrochemicals. It business supplies olefins, polyolefins, aromatics, and a wide variety of other petrochemicals.
The company was founded by John D. Rockefeller in 1882 and is headquartered in Irving, TX.
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Exxon Mobil Corp. | Snapshot | July 28, 2012
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