Tuesday 16 July 2013

Analysis of Exxon Mobil

American oil and gas company

Company: Exxon Mobil

Business: An American oil and gas company. They are divided into three parts: Upstream, Downstream and Chemicals.

Active: A global player that have exploration and production acreage in 36 countries, production sites in 23 countries and sales of natural gas in 33 countries with interests in 32 refineries in 17 countries and the chemical industry, with interests in 46 wholly owned and joint-venture manufacturing locations worldwide.

P/E: 9.2

containing P/E and P/B values as well as dividend

The P/E for Exxon is great with 9.2 however the P/B is too high with 2.5 which means that it only just does not qualify for a buy. The earnings to sales is pretty ok with 9%. The book to debt is also ok with a ratio of 1. The growth in the last five years have only been 0.2% per year but it is nice to see a positive value here. Few oil and gas companies managed that! The motivated P/E ends up around 10 which means that the stock is fairly valued so a good moment to buy a great company at a fair price? The dividends are ok according to American standards with 2.4% which represents 22% of the earnings so plenty of space to increase it.

Conclusion: Another American giant for buy and hold strategy. Also this company I could buy directly.

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