Exxon Mobil Corporation (XOM) reports lower liquidity position

Total dollar value of outstanding share are reported at $358123.34 ML . Valuation of the Exxon Mobil Corporation with respect to its balance sheet strength is positive with Price to Book at 1.96 but there might be scope for a upgrade to its outlook.

Company would find it hard to beat current growth rates in future. Present earning Price ratio at 20.64% indicate that board is on track with respect to growth rate above PE 27.35.

Basic Materials sector is currently positive by 0.34 , and is still relatively encouraging.Total Money flow for the day ended at $159.66mn with tick up at $1388.38mn and tick down at $1228.72mn led to up /down ratio of 1.13x. With Tick up down ratio robust at 1.58, MF saw a boost of $161.88mn.

The asset has reported 7.40% return on Equity which is seen as a positive as sustainable growth rate continues to increase. Company is currently at its 10.26% higher its 52W low As values near yearly high there is enough gap in the intrinsic value and current price , so focus should be on the core drivers , not price.

The RSI for the stock trading in the no trade zone indicative of sideways price moves in the short term , this means from Exxon Mobil Corporation charts RSI 60.47 currently represents neutral market movement and might hit resistance in long term .

Firm’s higher quick ratio 0.9 indicates less liquidity comfort in near term, and low current ratio seems to be short term as firms sometimes use near term liquidity to meet its long term growth ..

In next fiscal market consensus expect an boost in growth compared to current 27.35 PE , however companies P /E value considering expected earnings calculated at 20.24x. Exxon Mobil Corporation expected future price to earnings has been at20.24 which beats present growth values .

Exxon Mobil Corporation stocks at 0.82 Beta exhibit lower correlation with the stock market index. Company price to earnings value of 27.35% might be a signs of overheated stock .

However this conclusion, is heavily based on comparison and does not seem to be good bargain as price are 25.66x times more than the Basic Materials sector. Exxon Mobil Corporation continue to see low 3.80% ROA with operations being asset intensive.

At 0.9 company Stocks current assets and current liabilities are below average . Forecast for profit growth for 2017 have dropped into negative territory at -51.20%, despite that year-over-year earnings growth should be in positive .

Its not been a good calendar year for the Basic Materials sector which has tipped noticeably higher, and then lower . , and with lack of fundamental stimulus , stock has been lowered by Gordon Gray from HSBC to Reduce from Hold, and analysts are essentially reiterating another recurring theme in the Basic Materials sector.

Company’s 200 Day Avg 3.17%, is a good sign to test shares abiding directional trend , and stock is somewhat tricky to assess as there is a pattern taking shape in its general direction , but clear sense of direction is missing.

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