Exxon Mobile 2011 4Q financial analysis

Companies results is show slight decrease 2nd quarter in a row. If compared with Y2010 4Q revenue has increased by 15% from 101 bn.$ to 116 bn.$ but as can seen from graph below company is not influenced by seasonality so comparing with 2 and 3 quarters revenue has decreased. Same is with profit. If compares with 2010 4Q Net Income before amortization remained unchanged 13,5 bn.$ but if compared with 2 and 3 quarters it has decreased from 14,6 bn.$ Company explains that decrease is driven by decrease in industry refining margin. In general companies results are negative.

Equity level remains about the same 47% and is at good level. Due to decreased Net income and increased Equity and Total asset ROE and ROA ratios decreases. ROE from around 28% at Q1 to around 24% at Q4. ROA decreased from 13% to 11%. So companies efficiency  shows decrease.

Companies Inventory level stays around the same ~15 bn.$ turnover stays ~15 days. Net receivable has increased a little bit from 35 bn.$ to 39 bn.$ but its turnover is 30 days in level. Account payable 57 bn.$ turnover 60 days also in line.

Companies generated Net income is mostly used for dividend payments and own stock repurchase. Also company is investing quit a lot into long term asset. At Y2011 investments have toppled over 32 bn.$ Also investments are financed by long term liability increase, at Q4 by 7 bn.$. In general companies balance structure is average.

 

Share value:

Common Stocks	9,5 bn.$	4,71 bn.	2,02 $
+ Retained earnings	144,9 bn.$	+ 30,76 $	32,78 $
+ 1 year Net income before Depreciation	56,6 bn.$	+ 12,02 $	44,80 $

 

Companies share basic value is ~33$.  Current market price is 86$ which shows that market is paying 53$ more or 4,4 years of Net income before Depreciation earnings. Share profitability (share market price/Net income before Depreciation) is 14%.

Company at the moment pays 1,88$/share annual dividends (0,47$/quarter) before tax or 2,2% investment yield. Since profit shows decrease in past few quarters predicted future dividend level should stay the same or even decrease a bit if profit decrease will continue for longer time.

Analysis source: ExxonMobil 2011 4Q 10-Q financial statements

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