Exxon Profitability Analysis

XOM
 Stock
  

USD 91.46  0.86  0.93%   

For Exxon profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Exxon to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Exxon Mobil Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Exxon's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Exxon Mobil Corp over time as well as its relative position and ranking within its peers. Check out Your Current Watchlist.
  
Exxon Return on Sales is relatively stable at the moment as compared to the past year. The company's current value of Return on Sales is estimated at 0.0413. Sales per Share is expected to hike to 78.22 this year, although the value of Price to Sales Ratio will most likely fall to 1.24. Exxon Operating Income is relatively stable at the moment as compared to the past year. The company's current value of Operating Income is estimated at 37.32 Billion.

Exxon Revenues

341.57 Billion

Is Exxon's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Exxon. If investors know Exxon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Exxon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
2.84
Market Capitalization
391.8 B
Quarterly Revenue Growth YOY
0.69
Return On Assets
0.0885
Return On Equity
0.23
The market value of Exxon Mobil Corp is measured differently than its book value, which is the value of Exxon that is recorded on the company's balance sheet. Investors also form their own opinion of Exxon's value that differs from its market value or its book value, called intrinsic value, which is Exxon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Exxon's market value can be influenced by many factors that don't directly affect Exxon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Exxon's value and its price as these two are different measures arrived at by different means. Investors typically determine Exxon value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Exxon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Exxon Mobil Corp Shares Owned by Institutions vs. Cash and Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Exxon's current stock value. Our valuation model uses many indicators to compare Exxon value to that of its competitors to determine the firm's financial worth.
Exxon Mobil Corp is rated first in cash and equivalents category among related companies. It is rated first in shares owned by institutions category among related companies . The ratio of Cash and Equivalents to Shares Owned by Institutions for Exxon Mobil Corp is about  331,167,691 . Exxon Cash and Equivalents is relatively stable at the moment as compared to the past year. The company's current value of Cash and Equivalents is estimated at 6.9 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Exxon by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Exxon's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Exxon's earnings, one of the primary drivers of an investment's value.

Exxon Shares Owned by Institutions vs. Cash and Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Exxon 
Cash 
 = 
Bank Deposits 
+  
Liquidities 
18.86 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Exxon 
Shares Held by Institutions 
 = 
Funds and Banks 
Firms 
56.95 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

Exxon Shares Owned by Institutions Comparison

Exxon is currently under evaluation in shares owned by institutions category among related companies.

Exxon Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Exxon, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Exxon will eventually generate negative long term returns. The profitability progress is the general direction of Exxon's change in net profit over the period of time. It can combine multiple indicators of Exxon, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-25.6 B-26.2 B
Consolidated Income7.5 B7.7 B
Net Income23 B24.7 B
Net Income Common Stock7.1 B7.2 B
Net Loss Income from Discontinued Operations-404.1 M-436 M
Net Income to Non Controlling Interests615.2 M914.5 M
Operating Income32.2 B37.3 B
Income Tax Expense-365.4 M-375 M
Net Income Per Employee365.7 K359.7 K
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States and internationally. The company was founded in 1870 and is headquartered in Irving, Texas. Exxon operates under Oil Gas Integrated classification in the United States and is traded on New York Stock Exchange. It employs 63000 people.

Exxon Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Exxon. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Exxon position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Exxon's important profitability drivers and their relationship over time.

Exxon Profitability Trends

Exxon profitability trend refers to the progression of profit or loss within a business. An upward trend means that Exxon's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Exxon's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Exxon Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Exxon different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Exxon in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Exxon's future profitability.

Use Exxon in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Exxon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Exxon will appreciate offsetting losses from the drop in the long position's value.

Exxon Pair Trading

Exxon Mobil Corp Pair Trading Analysis

The ability to find closely correlated positions to Exxon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Exxon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Exxon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Exxon Mobil Corp to buy it.
The correlation of Exxon is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Exxon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Exxon Mobil Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Exxon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Exxon position

In addition to having Exxon in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Social Domain
Social Domain Theme
New or established large and mid-sized companies that are involved in the social media industry, including entities that provide web-based or mobile media applications and services across across large segment of population in multiple geographical areas. The Social Domain theme has 35 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Social Domain Theme or any other thematic opportunities.
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Check out Your Current Watchlist. Note that the Exxon Mobil Corp information on this page should be used as a complementary analysis to other Exxon's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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To fully project Exxon's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Exxon Mobil Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Exxon's income statement, its balance sheet, and the statement of cash flows.
Potential Exxon investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Exxon investors may work on each financial statement separately, they are all related. The changes in Exxon's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Exxon's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.