Exxon Mobil has recently completed a significant expansion of its chemical production facilities at the Baytown manufacturing site in Texas. This expansion is a crucial component of the company’s long-term growth strategy, aimed at generating higher-value products from its refining and chemical operations along the U.S. Gulf Coast. Commencing in 2019, the project required an additional investment of $2 billion over a three-year period.
The most recent phase of expansion at the Baytown facility involves the establishment of two new chemical production units. The first unit is a state-of-the-art plant capable of producing 400,000 tons of polymers annually. The second unit is an olefins plant designed to manufacture 350,000 tons of feedstocks for polyethylene, waxes, and lubricating oils. These additions are intended to optimize the value derived from the increased production in the Permian Basin and meet the growing demand for superior-quality products. It is worth noting that the Baytown petrochemical complex already houses the nation’s third-largest crude oil refinery.
Exxon’s decision to invest in the expansion of the Baytown facilities aligns with its strategic objective of capitalizing on the abundance of light sweet crude extracted from the Permian Basin in Texas. Moreover, this ambitious project is expected to generate approximately 2,000 employment opportunities throughout its construction phase, contributing to the local economy and job market.
Exxon Mobil Corporation
Updated on: 04/12/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
7:00 AM (UTC)
Date:04 December, 2023
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Exxon Mobil Corporation (XOM) Stock Performance and Financial Outlook: September 19, 2023
On September 19, 2023, Exxon Mobil Corporation (XOM) experienced a relatively stable day in the stock market. The stock opened at $118.53, slightly higher than the previous day’s closing price of $117.64. Throughout the day, the stock traded within a narrow range of $117.83 to $118.80. The trading volume for the day was 2,852,542 shares, significantly lower than the three-month average volume of 15,513,464 shares.
XOM, with a market capitalization of $467.2 billion, is a major player in the energy sector, specifically in the integrated oil industry. The company has shown impressive earnings growth over the past year, with a growth rate of 145.95%. However, the earnings growth for this year is projected to be -33.49%, indicating a potential decline in profitability. Looking ahead, the company’s earnings growth for the next five years is forecasted to be -11.00%.
Despite the potential decline in earnings growth, XOM has demonstrated strong revenue growth in the past year, with a growth rate of 42.75%. This indicates that the company has been able to increase its top line, although it may face challenges in maintaining profitability. The price-to-earnings (P/E) ratio for XOM is 9.4, suggesting that the stock is relatively undervalued compared to its earnings.
In terms of valuation ratios, XOM has a price/sales ratio of 1.16 and a price/book ratio of 2.44. These ratios indicate that the stock is trading at a reasonable price relative to its sales and book value.
On September 19, 2023, XOM’s stock performance was influenced by the performance of other major players in the energy sector. Royal Dutch Shell (RYDAF) experienced a slight decline of 0.29%, while Total (TTE) saw an increase of 1.96%, and Statoil (EQNR) rose by 1.59%. These movements in the sector may have had some impact on XOM’s stock price.
Looking ahead, XOM’s next reporting date is set for November 3, 2023, where the company will release its quarterly earnings report. Analysts are forecasting an earnings per share (EPS) of $2.15 for this quarter. In the previous fiscal year, XOM reported an annual revenue of $400.4 billion and a net profit of $55.7 billion, resulting in a net profit margin of 13.92%.
Overall, XOM’s stock performance on September 19, 2023, was relatively stable, trading within a narrow range. The company’s strong revenue growth in the past year indicates its ability to generate top-line growth, although it may face challenges in maintaining profitability. Investors will be closely watching the upcoming earnings report on November 3, 2023, to gain further insights into XOM’s financial performance.
Exxon Mobil Corp (XOM) Stock Analysis: Analysts Predict a Slight Increase in Target Price
On September 19, 2023, Exxon Mobil Corp (XOM) stock had a median target price of $120.00, according to 21 analysts offering 12-month price forecasts. This target price had a high estimate of $145.00 and a low estimate of $105.00. The median estimate indicated a +1.56% increase from the last recorded price of $118.16.
The current consensus among 25 polled investment analysts is to hold stock in Exxon Mobil Corp. This rating has remained steady since September, indicating that there has been no change from a hold rating.
Exxon Mobil Corp is a multinational oil and gas corporation that operates in various segments of the energy industry. As of the reporting date of November 3, the company had reported earnings per share of $2.15 and sales of $84.7 billion for the current quarter.
The median target price of $120.00 suggests that analysts are cautiously optimistic about the future performance of Exxon Mobil Corp stock. With a slight increase predicted, investors may consider holding onto their current positions rather than buying or selling.
Overall, the performance of Exxon Mobil Corp stock on September 19, 2023, indicates a relatively stable outlook with a slight positive growth potential according to analysts’ forecasts.