Exxon Mobil (XOM) Stock Analysis

by | Dividend Aristocrats, Dividend Champions

Exxon Mobil Logo

Exxon Mobil Dividend

Exxon Mobil (XOM) has paid a dividend since 1911 and increased its dividend for 39 consecutive years; qualifying the company as a Dividend Aristocrat and Dividend Champion.

Barriers to entry and strategic assets provide a small moat for Exxon Mobil.  Historically low interest rates have allowed competitors that would normally have not been viable to erode their moat.

Current Dividend Annualized: $3.52

Exxon Mobil (XOM) Intrinsic Value – Margin of Safety Analysis            

(updated November 2021)

Normalized Diluted Earnings Per Share (TTM): $-1.39
Cash Flow From Operations Per Share (TTM): $8.19
Free Cash Flow Per Share (TTM): $5.47

Estimated Intrinsic Value: $74

Target Buy Price Based on Required Margin of Safety =  $57
(Required Margin of Safety Based On Risk Stability Grade:

A = 10%, B = 20%, C = 30%, D = 40%, F = 50%)

Target SELL Price Based on Estimated Intrinsic Value = $81
(Allow Overvaluation Adjusted by Risk Stability Grade:

A = 20%, B = 15%, C = 10%, D = 5%, F = 0%)

 

Risk / Stability Grade: C

A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.

B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.

C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.

D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.

F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.

 

Financial Risk Grade:  C

A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

B grade indicates a very low probability for a dividend cut.

C grade indicates a low probability for a dividend cut and/or average safety risk.

D grade indicates there are issues that should be considered concerning future dividend payments.

F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.

 

Business Quality Grade:  C

A grade indicates earnings quality is high or far above average.

B grade indicates earnings quality is good and/or above average.

C grade indicates earnings quality is acceptable or average.

D grade indicates earnings quality is poor and requires thoughtful due diligence.

F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.

Earnings Report:  9/30/21

Dividend Value Builder Newsletter (24 Issues) - $99/Yr.

Discover, Evaluate, and Compare Dividend Stocks Without Emotional Bias

AAAMP Portfolios Position Disclosures:
Dividend Growth & Income – LONG
Treasure Trove Twelve – LONG
Global Dividend Balanced – LONG
Global Value – None
Global Value Aggressive – None
High Yield – LONG

Company Description

Sector: Energy
Industry: Oil & Gas Integrated

ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2018, it produced 2.3 million barrels of liquids and 9.4 billion cubic feet of natural gas per day. At the end of 2018, reserves were 24.3 billion barrels of oil equivalent (including 4.2 billion for equity companies), 65% of which are liquids.

The company is the world’s largest refiner with a total global refining capacity of 4.8 million barrels of oil per day and one of the world’s largest manufacturers of commodity and specialty chemicals. It operates its business divisions in North and South America, Europe, the Middle East, North and sub-Saharan Africa, and the Asia-Pacific.

Discover, Compare, and Evaluate Dividend Stocks Without Emotional Bias

Dividend Value Builder Newsletter (24 Issues) - $99/year.

Minimize Large Portfolio Drawdowns

Invest With Confidence In Less Time - Manage Your Portfolio Without Behavioral Errors

Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.

Share This