Exxon Mobil: Don’t Be In A Rush To Sell


  • It may be tempting to sell Exxon Mobil Corporation in view of expectations of revenue and EPS growth peaking and the stock being up more than 2.5x since Covid.
  • The current Exxon Mobil valuation, however, suggests there could be upside as the EV/EBITDA is close to 50% off its 5 year average.
  • Exxon Mobil management expects continued improvements in the company’s cost structure to lead to doubling of earnings and cash by 2027.
  • Exxon Mobil recently made a strategic capital allocation choice of boosting buybacks instead of increasing dividends; this enables it to manage expectations and improves its liquidity and future optionality.
  • The fact that Exxon Mobil’s dividend yield is 3.35% is also compelling as this is more or less in line with the return on risk-free government paper in developed markets.

ExxonMobil"s Baton Rouge Refinery, Louisiana, USA


When analyzing an industry stalwart like Exxon Mobil Corporation (NYSE:XOM), it’s important to bear in mind that most of its consequential stockholders are invariably large institutional players with long-term investing time horizons.

With this in mind, and looking at

XOM market cap

Seeking Alpha

Dec 2016

Dec 2020

Last Report






$3.65 billion

$4.36 billion

$30.40 billion

Net Debt

$39.10 billion

$39.15 billion

$15.02 billion

Quarterly Dividend/share




XOM Revenue Estimates

XOM Revenue Estimates (Seeking Alpha)

XOM EPS Estimates

XOM EPS Estimates (Seeking Alpha)

Disclosure: I/we have a beneficial long position in the shares of XOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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