Is Exxon Mobil Losing Its Luster?

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With shares of Exxon Mobil (NYSE:XOM) trading at around $88.97, is XOM an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

This article will be a hybrid of sorts. Exxon Mobil will be the primary focus, but we’ll also put a little twist on it.

Here’s something you already know: Exxon Mobil is involved in the business of the exploration and production of natural gas on a global scale. You might also be aware that ExxonMobil has been one of the best investments on the planet for several decades. Furthermore, it’s possible that you will know all the information about to be presented, but even if that’s the case, it’s worth a review.

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Instead of looking at recent stories that might move the stock for one day, we’re going to focus more on the fundamentals, which is a better indicator of what might happen over the long run. We’re going to compare ExxonMobil’s fundamentals to the fundamentals of BP plc (NYSE:BP) and Chevron Corporation (NYSE:CVX). To make it fun, we’ll keep a score. Then, we will determine the best investment of these three companies based on that score. This doesn’t mean the winner will actually be the best investment going forward. Think of it more as one of many determining factors to consider.

Keep in mind that these three companies are different in size. Exxon Mobil has a market cap of $398.63 billion. Chevron has a market cap of $230.35 billion. BP has a market cap of $128.17 billion. Also, not all stats will be included in the chart below. There will be more on the following pages. What fun is a competition without any suspense?

XOM

BP

CVX

Trailing P/E

9.18

11.15

8.90

ROE

28.69

10.18

20.26

Operating Margin

13.43

3.56

15.73

Dividend Yield

2.60%

5.30%

3.00%

Operating Cash Flow

$56.16 Billion

$20.40 Billion

$38.81 Billion

 

So far, Exxon Mobil is most impressive in ROE and operating cash flow. BP is most impressive in dividend yield. Chevron is most impressive in value and operating margin. Looks like it’s going to be a tight race. We wouldn’t want it any other way.

Let’s take a look at some more important numbers.

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