XOM Stock Analysis - is Exxon Mobil Stock a Good Buy Today | Summary and Q&A

TL;DR

Learn about Exxon Mobil's business segments and the impact of COVID-19 on its earnings. Evaluate Exxon Mobil stock using a discounted free cash flow valuation method.

Key Insights

• 👨‍💼 Exxon Mobil's business is divided into downstream, chemicals, and upstream segments, with downstream contributing the most to revenue.
• 🛢️ The COVID-19 pandemic and oversupply of oil have negatively impacted Exxon Mobil's upstream and downstream segments.
• 🛩️ The company's chemical segment has performed well, but its revenue contribution is relatively small.
• 🛄 Exxon Mobil's dividend yield is attractive, and its management aims to maintain and improve the dividend.
• 🥶 Based on a discounted free cash flow evaluation, the fair value of Exxon Mobil stock is estimated to be around $54 per share.
• ❓ The company's debt should be considered when evaluating the stock's value.
• 🛩️ Exxon Mobil's size and diversification may provide some advantage compared to smaller midstream companies.

Transcript

hi I'm Jimmy in this video we're looking at Exxon Mobil stock ticker symbol XOM the goal of this video is to try to better understand Exxon Mobil's business and then see if we can value Exxon Mobil stock using a discounted free cash flow evaluation technique now I'm reviewing this particular company because it came as a suggestion from one of the l... Read More

Questions & Answers

Q: How has Exxon Mobil been impacted by COVID-19 and the volatility in the energy markets?

The upstream and downstream segments have experienced decreased demand for oil and gasoline, resulting in losses. However, the chemical segment has shown improvements in margins.

Q: What is Exxon Mobil's dividend yield?

Exxon Mobil's dividend yield is currently around 8%. The company has a history of consistently paying dividends and aims to maintain and improve the dividend in the future.

Q: What is the fair value of Exxon Mobil stock?

Based on a discounted free cash flow evaluation, the fair value of Exxon Mobil stock is estimated to be around $54 per share, considering the company's net debt.

Q: Should investors consider buying Exxon Mobil stock?

With a potential upside of around 22% from the current stock price and a strong dividend, Exxon Mobil stock can be an interesting investment for long-term portfolios. However, a recovery in the oil industry may take several years.

Summary & Key Takeaways

• Exxon Mobil's business comprises three main segments: downstream (80% of 2019 revenue), chemicals (11%), and upstream (9%).

• The upstream and downstream segments have been significantly affected by the oversupply of oil and decreased global demand due to COVID-19.

• Exxon Mobil's chemical segment performed well, but its contribution to overall revenue is small. The company continues to build its portfolio of oil and gas properties for future profitability.