Louis Moore Bacon (Trades, Portfolio) and the Tweedy Browne (Trades, Portfolio) Co. exited their positions in ExxonMobil (XOM, Financial) during the third quarter.
ExxonMobil was incorporated in New Jersey in 1882. The company’s principal business is in the exploration and production of crude oil and natural gas. It also manufactures petroleum products, and transports and sells crude oil, natural gas and petroleum products.
The company is a major manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene plastics and a variety of specialty products.
ExxonMobil has a market cap of $388.29 billion, a price-earnings ratio of 43.75, an enterprise value of $435.76, a price-book ratio of 2.27 and a price-sales ratio of 1.73.
According to GuruFocus, ExxonMobil has a 6 of 10 financial strength rating with a cash-debt ratio of 0.11, an equity to asset ratio of 0.50 and a Piotroski F-Score of 4. Its Beneish M-Score of -2.55 indicates the company does not manipulate its financial statements.
ExxonMobil also has a 4 of 10 profitability and growth rating. It has an operating margin of 4.58%, a net margin of 3.98%, a return on equity (ROE) of 5.23%, a return on assets (ROA) of 2.63% and three-year EPS growth of -26.50%.
According to GuruFocus, ExxonMobil has three severe warning signs, which likely had an impact on both gurus'Â decision to sell out during the third quarter.
- The company’s operating margin has been in decline over the past five years. The average rate of decline per year is -9.1%.
- The company’s revenue per share has declined by -3.30% per year over the past five years.
- The company’s gross margin has been in long-term decline. The average rate of decline per year is -1.5% over the previous five years.
Below is a Peter Lynch chart that shows ExxonMobil is trading above its intrinsic value.
Disclosure:Â Author does not own any shares of this company.
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