Exxon Mobil Corporation Analysis


Exxon Mobil Corporation 

Chart done on daily timeframe. Trading at a price to earnings ratio of only 12.72, Exxon Mobil is a bargain purchase that investors won’t ignore for very long. The energy giant grew its revenue rapidly during the height of the Ukraine war as demand skyrocketed along with prices, but Covid slowed revenues down, which is why their stock went into a deep slumber. Although revenues have declines for the last four quarters, the company still pulled more than 300B in 2023, 36B of that was net profits. The company’s balance sheet is also at a healthy 2:1 ratio, with 376B in assets and 163B in liabilities. Last but not least, they have a positive free cash flow of 33B, safeguarding them against slowdowns and competition. At this price, Exxon is a solid purchase for a long term portfolio that’s looking to diversify into energy/oil companies. Even if the stock takes times to come around, Exxon’s investors are paid a strong dividend to make their investment worth their while. 

Keep in mind energy/oil stocks move in cycles and often see lots of ups and downs, but the strong names generally trend up over a slow period.