Apple Inc. (NasdaqGS:AAPL) > Financials > Key Stats
In Millions of the trading currency, except per share items.
Currency:
Order:
Decimals:
Trading Currency
Latest on Right
Capital IQ (Default)
Conversion:
Units:
Dilution:
Historical
S&P Capital IQ (Default)
Basic
Key Financials¹
12 months
Sep-24-2016A
USD
12 months
Sep-30-2017A
USD
12 months
Sep-29-2018A
USD
12 months
Sep-28-2019A
USD
12 months
Sep-26-2020A
USD
LTM²
12 months
Dec-26-2020A
USD
215.639,0
(7,7%)
229.234,0
6,3%
265.595,0
15,9%
260.174,0
(2,0%)
274.515,0
5,5%
294.135,0
9,9%
Gross Profit
Margin %
84.263,0
39,1%
88.186,0
38,5%
101.839,0
38,3%
98.392,0
37,8%
104.956,0
38,2%
114.067,0
38,8%
EBITDA
Margin %
70.529,0
32,7%
71.501,0
31,2%
81.801,0
30,8%
76.477,0
29,4%
77.344,0
28,2%
85.159,0
29,0%
EBIT
Margin %
60.024,0
27,8%
61.344,0
26,8%
70.898,0
26,7%
63.930,0
24,6%
66.288,0
24,1%
74.253,0
25,2%
Earnings from Cont. Ops.
Margin %
45.687,0
21,2%
48.351,0
21,1%
59.531,0
22,4%
55.256,0
21,2%
57.411,0
20,9%
63.930,0
21,7%
Net Income
Margin %
45.687,0
21,2%
48.351,0
21,1%
59.531,0
22,4%
55.256,0
21,2%
57.411,0
20,9%
63.930,0
21,7%
2,08
(9,9%)
2,3
10,8%
2,98
29,4%
2,97
(0,3%)
3,28
10,4%
3,69
17,1%
USD
1,0
H
USD
1,0
H
USD
1,0
H
USD
1,0
H
USD
1,0
H
USD
1,0
H
For the Fiscal Period Ending
Currency
Total Revenue
Growth Over Prior Year
Diluted EPS Excl. Extra Items³
Growth Over Prior Year
Currency
Exchange Rate
Conversion Method
¹All results are taken from the most recently filed statement for each period. When there has been more than one, earlier filings can be viewed on the individual statement pages.
²Growth rates for the LTM period are calculated against the LTM period ending 12 months before.
Growth Rates are calculated in originally reported currency only and will not reflect any currency conversion selected above.
Latest Capitalization (Millions of USD)
Currency
Share Price
Shares Out.
Market Capitalization
- Cash & Short Term Investments
+ Total Debt
+ Pref. Equity
+ Total Minority Interest
= Total Enterprise Value (TEV)
Book Value of Common Equity
+ Pref. Equity
+ Total Minority Interest
+ Total Debt
= Total Capital
**For companies that have multiple share classes that publicly trade,
we are incorporating the different prices to calculate our company
level market capitalization. Please click on the value to see the
detailed calculation. Prices shown on this page are the close price of
the company’s primary stock class. Shares shown on this page are
total company as-reported share values.
Total Liability includes Total Debt, Minority Interest and Pref. Equity.
USD
$134,16
16.788,1
2.252.291,0
76.826,0
112.043,0
2.168.763,0
66.224,0
112.043,0
178.267,0
Net Liability includes Total Liability, net of Cash and Short Term Investments.
TEV includes Market Cap and Net Liability.
Total Capital includes Common Equity and Total Liability.
Valuation Multiples based on Current Capitalization
12 months
Sep-30-2017A
9,5x
12 months
Sep-29-2018A
8,2x
12 months
Sep-28-2019A
8,3x
12 months
Sep-26-2020A
8,0x
LTM
12 months
Dec-26-2020A
7,4x
TEV/EBITDA
30,3x
26,5x
28,4x
24,8x
25,5x
TEV/EBIT
35,4x
30,6x
33,9x
32,9x
29,2x
P/Diluted EPS Before Extra
58,3x
45,0x
45,2x
40,9x
36,4x
P/BV
20,5x
23,8x
26,4x
34,9x
34,1x
Price/Tang BV
20,5x
23,8x
26,4x
34,9x
34,1x
For the Fiscal Period Ending
TEV/Total Revenue
Apple Inc. (NasdaqGS:AAPL) > Financials > Income Statement
In Millions of the reported currency, except per share items.
Template:
Period Type:
Currency:
Units:
Standard
Annual
Reported Currency
S&P Capital IQ (Default)
Restatement:
Order:
Conversion:
Decimals:
Latest Filings
Latest on Right
Historical
Capital IQ (Default)
Income Statement
12 months
Sep-24-2016
USD
12 months
Sep-30-2017
USD
12 months
Sep-29-2018
USD
12 months
Sep-28-2019
USD
12 months
Sep-26-2020
USD
LTM
12 months
Dec-26-2020
USD
Revenue
Other Revenue
Total Revenue
215.639,0
215.639,0
229.234,0
229.234,0
265.595,0
265.595,0
260.174,0
260.174,0
274.515,0
274.515,0
294.135,0
294.135,0
Cost Of Goods Sold
Gross Profit
131.376,0
84.263,0
141.048,0
88.186,0
163.756,0
101.839,0
161.782,0
98.392,0
169.559,0
104.956,0
180.068,0
114.067,0
14.194,0
10.045,0
-
15.261,0
11.581,0
-
16.705,0
14.236,0
-
18.245,0
16.217,0
-
19.916,0
18.752,0
-
20.350,0
19.464,0
-
Other Operating Exp., Total
24.239,0
26.842,0
30.941,0
34.462,0
38.668,0
39.814,0
Operating Income
60.024,0
61.344,0
70.898,0
63.930,0
66.288,0
74.253,0
Interest Expense
Interest and Invest. Income
Net Interest Exp.
(1.456,0)
3.999,0
2.543,0
(2.323,0)
5.201,0
2.878,0
(3.240,0)
5.686,0
2.446,0
(3.576,0)
4.961,0
1.385,0
(2.873,0)
3.763,0
890,0
(2.726,0)
3.465,0
739,0
Currency Exchange Gains (Loss)
Other Non-Operating Inc. (Exp.)
EBT Excl. Unusual Items
(1.195,0)
61.372,0
(133,0)
64.089,0
(441,0)
72.903,0
(784,0)
1.237,0
65.768,0
604,0
(773,0)
67.009,0
1.009,0
(1.436,0)
74.565,0
Impairment of Goodwill
Gain (Loss) On Sale Of Invest.
Other Unusual Items
EBT Incl. Unusual Items
61.372,0
64.089,0
72.903,0
(31,0)
65.737,0
82,0
67.091,0
187,0
74.752,0
Income Tax Expense
15.685,0
15.738,0
13.372,0
10.481,0
9.680,0
10.822,0
For the Fiscal Period Ending
Currency
Selling General & Admin Exp.
R & D Exp.
Depreciation & Amort.
Other Operating Expense/(Income)
Earnings from Cont. Ops.
45.687,0
48.351,0
59.531,0
55.256,0
57.411,0
63.930,0
Earnings of Discontinued Ops.
Extraord. Item & Account. Change
Net Income to Company
45.687,0
48.351,0
59.531,0
55.256,0
57.411,0
63.930,0
Minority Int. in Earnings
Net Income
45.687,0
48.351,0
59.531,0
55.256,0
57.411,0
63.930,0
-
-
-
-
-
-
45.687,0
45.687,0
48.351,0
48.351,0
59.531,0
59.531,0
55.256,0
55.256,0
57.411,0
57.411,0
63.930,0
63.930,0
Per Share Items
Basic EPS
Basic EPS Excl. Extra Items
Weighted Avg. Basic Shares Out.
$2,09
2,09
21.883,3
$2,32
2,32
20.869,0
$3,0
3,0
19.821,5
$2,99
2,99
18.471,3
$3,31
3,31
17.352,1
$3,72
3,72
17.170,9
Diluted EPS
Diluted EPS Excl. Extra Items
Weighted Avg. Diluted Shares Out.
$2,08
2,08
22.001,1
$2,3
2,3
21.006,8
$2,98
2,98
20.000,4
$2,97
2,97
18.595,7
$3,28
3,28
17.528,2
$3,69
3,69
17.352,0
$1,75
1,74
$1,92
1,91
$2,3
2,28
$2,23
2,21
$2,41
2,39
$2,71
2,69
$0,55
26,6%
$0,6
26,4%
$0,68
23,0%
$0,75
25,6%
$0,8
24,5%
$0,81
22,1%
0,1
0,1
0,1
0,1
0,1
0,1
Supplemental Items
EBITDA
EBITA
EBIT
EBITDAR
As Reported Total Revenue*
Effective Tax Rate %
Current Domestic Taxes
Current Foreign Taxes
Total Current Taxes
Deferred Domestic Taxes
Deferred Foreign Taxes
Total Deferred Taxes
70.529,0
60.024,0
60.024,0
71.468,0
NA
25,6%
8.642,0
2.105,0
10.747,0
4.905,0
33,0
4.938,0
71.501,0
61.344,0
61.344,0
72.601,0
229.234,0
24,6%
8.101,0
1.671,0
9.772,0
5.982,0
(16,0)
5.966,0
81.801,0
70.898,0
70.898,0
83.001,0
265.595,0
18,3%
41.976,0
3.986,0
45.962,0
(33.771,0)
1.181,0
(32.590,0)
76.477,0
63.930,0
63.930,0
77.777,0
260.174,0
15,9%
6.859,0
3.962,0
10.821,0
(3.006,0)
2.666,0
(340,0)
77.344,0
66.288,0
66.288,0
88.144,0
274.515,0
14,4%
6.761,0
3.134,0
9.895,0
(3.598,0)
3.383,0
(215,0)
85.159,0
74.253,0
74.253,0
NA
294.135,0
14,5%
6.761,0
3.134,0
9.895,0
(3.598,0)
3.383,0
(215,0)
Normalized Net Income
38.357,5
40.055,6
45.564,4
41.105,0
41.880,6
46.603,1
Pref. Dividends and Other Adj.
NI to Common Incl Extra Items
NI to Common Excl. Extra Items
Normalized Basic EPS
Normalized Diluted EPS
Dividends per Share
Payout Ratio %
Shares per Depository Receipt
Interest on Long Term Debt
Filing Date
Restatement Type
Calculation Type
Supplemental Operating Expense Items
R&D Exp.
Net Rental Exp.
Imputed Oper. Lease Interest Exp.
Imputed Oper. Lease Depreciation
Stock-Based Comp., COGS
Stock-Based Comp., R&D Exp.
Stock-Based Comp., SG&A Exp.
Stock-Based Comp., Unallocated
Stock-Based Comp., Total
1.400,0
Nov-05-2018
NC
REP
2.200,0
Oct-31-2019
NC
REP
3.000,0
Oct-30-2020
NC
REP
3.200,0
Oct-30-2020
NC
REP
2.800,0
Oct-30-2020
O
REP
NA
Jan-28-2021
O
LTM
10.045,0
939,0
144,5
794,5
11.581,0
1.100,0
201,7
898,3
14.236,0
1.200,0
270,3
929,7
16.217,0
1.300,0
334,2
965,8
18.752,0
10.800,0
2.155,4
8.644,6
19.464,0
NA
-
769,0
1.889,0
1.552,0
4.210,0
4.840,0
4.840,0
5.340,0
5.340,0
6.068,0
6.068,0
6.829,0
6.829,0
7.139,0
7.139,0
* Occasionally, certain items classified as Revenue by the company will be re-classified as other income if it is deemed to be non-recurring and unrelated to the core business of the firm. This field shows Total Revenue e
Note: For multiple class companies, per share items are primary class equivalent, and for foreign companies listed as primary ADRs, per share items are ADR-equivalent.
Apple Inc. (NasdaqGS:AAPL) > Financials > Balance Sheet
In Millions of the reported currency, except per share items.
Template:
Period Type:
Currency:
Units:
Standard
Annual
Reported Currency
S&P Capital IQ (Default)
Balance Sheet
Balance Sheet as of:
Restatement:
Order:
Conversion:
Decimals:
Latest Filings
Latest on Right
Historical
Capital IQ (Default)
Sep-24-2016
USD
Sep-30-2017
USD
Reclassified
Sep-29-2018
USD
Sep-28-2019
USD
Sep-26-2020
USD
Dec-26-2020
USD
20.484,0
46.671,0
67.155,0
20.289,0
53.892,0
74.181,0
25.913,0
40.388,0
66.301,0
48.844,0
51.713,0
100.557,0
38.016,0
52.927,0
90.943,0
36.010,0
40.816,0
76.826,0
15.754,0
13.545,0
29.299,0
17.874,0
17.799,0
35.673,0
23.186,0
25.809,0
48.995,0
22.926,0
22.878,0
45.804,0
16.120,0
21.325,0
37.445,0
27.101,0
31.519,0
58.620,0
Inventory
Restricted Cash
Other Current Assets
Total Current Assets
2.132,0
8.283,0
106.869,0
4.855,0
13.936,0
128.645,0
3.956,0
12.087,0
131.339,0
4.106,0
23,0
12.329,0
162.819,0
4.061,0
36,0
11.228,0
143.713,0
4.973,0
13.687,0
154.106,0
Gross Property, Plant & Equipment
Accumulated Depreciation
Net Property, Plant & Equipment
61.245,0
(34.235,0)
27.010,0
75.076,0
(41.293,0)
33.783,0
90.403,0
(49.099,0)
41.304,0
95.957,0
(58.579,0)
37.378,0
112.096,0
(66.760,0)
45.336,0
105.493,0
(67.560,0)
37.933,0
Long-term Investments
Goodwill
Other Intangibles
Other Long-Term Assets
Total Assets
170.430,0
5.414,0
3.206,0
8.757,0
321.686,0
194.714,0
18.177,0
375.319,0
170.799,0
22.283,0
365.725,0
105.341,0
32.978,0
338.516,0
100.887,0
33.952,0
323.888,0
118.745,0
43.270,0
354.054,0
37.294,0
21.864,0
8.105,0
3.500,0
8.080,0
163,0
44.242,0
11.977,0
6.496,0
7.548,0
30.551,0
55.888,0
11.964,0
8.784,0
5.966,0
33.327,0
46.236,0
5.980,0
10.260,0
5.522,0
37.720,0
42.296,0
4.996,0
8.773,0
1.460,0
6.643,0
41.224,0
63.846,0
5.000,0
7.762,0
7.395,0
48.504,0
Currency
ASSETS
Cash And Equivalents
Short Term Investments
Total Cash & ST Investments
Accounts Receivable
Other Receivables
Total Receivables
LIABILITIES
Accounts Payable
Accrued Exp.
Short-term Borrowings
Curr. Port. of LT Debt
Curr. Port. of Leases
Unearned Revenue, Current
Other Current Liabilities
Total Current Liabilities
79.006,0
100.814,0
115.929,0
105.718,0
105.392,0
132.507,0
Long-Term Debt
Long-Term Leases
Unearned Revenue, Non-Current
Def. Tax Liability, Non-Curr.
Other Non-Current Liabilities
Total Liabilities
75.427,0
2.930,0
26.019,0
10.055,0
193.437,0
97.207,0
2.836,0
31.504,0
8.911,0
241.272,0
93.735,0
48.914,0
258.578,0
91.807,0
50.503,0
248.028,0
98.667,0
8.382,0
46.108,0
258.549,0
99.281,0
56.042,0
287.830,0
Common Stock
Additional Paid In Capital
Retained Earnings
Treasury Stock
Comprehensive Inc. and Other
Total Common Equity
31.251,0
96.364,0
634,0
128.249,0
35.867,0
98.330,0
(150,0)
134.047,0
40.201,0
70.400,0
(3.454,0)
107.147,0
45.174,0
45.898,0
(584,0)
90.488,0
50.779,0
14.966,0
(406,0)
65.339,0
51.744,0
14.301,0
179,0
66.224,0
Total Equity
128.249,0
134.047,0
107.147,0
90.488,0
65.339,0
66.224,0
Total Liabilities And Equity
321.686,0
375.319,0
365.725,0
338.516,0
323.888,0
354.054,0
21.329,3
21.344,7
$6,01
119.629,0
$5,6
87.032,0
(150.553,0)
7.512,0
FIFO
10.185,0
44.543,0
6.517,0
116.000
53,0
Nov-05-2018
NC
RUP
20.537,2
20.504,8
$6,54
134.047,0
$6,54
115.680,0
(153.215,0)
8.800,0
FIFO
13.587,0
54.210,0
7.279,0
123.000
NA
Oct-31-2019
NC
RUP
18.981,6
19.019,9
$5,63
107.147,0
$5,63
114.483,0
(122.617,0)
9.600,0
FIFO
16.216,0
65.982,0
8.205,0
132.000
NA
Oct-30-2020
RC
RUP
17.773,1
17.772,9
$5,09
90.488,0
$5,09
108.047,0
(97.851,0)
10.400,0
FIFO
17.085,0
69.797,0
9.075,0
137.000
NA
Oct-30-2020
NC
REP
17.001,8
16.976,8
$3,85
65.339,0
$3,85
122.278,0
(69.552,0)
86.400,0
FIFO
17.952,0
75.291,0
10.283,0
147.000
NA
Oct-30-2020
O
REP
16.788,1
16.823,3
$3,94
66.224,0
$3,94
112.043,0
(83.528,0)
NA
NA
18.885,0
76.224,0
10.384,0
NA
NA
Jan-28-2021
O
REP
Supplemental Items
Total Shares Out. on Filing Date
Total Shares Out. on Balance Sheet Date
Book Value/Share
Tangible Book Value
Tangible Book Value/Share
Total Debt
Net Debt
Debt Equivalent Oper. Leases
Inventory Method
Land
Machinery
Leasehold Improvements
Full Time Employees
Accum. Allowance for Doubtful Accts
Filing Date
Restatement Type
Calculation Type
Note: For multiple class companies, total share counts are primary class equivalent, and for foreign companies listed as primary ADRs, total share counts are ADR-equivalent.
Apple Inc. (NasdaqGS:AAPL) > Financials > Cash Flow
In Millions of the reported currency, except per share items.
Template:
Period Type:
Currency:
Units:
Standard
Annual
Reported Currency
S&P Capital IQ (Default)
Restatement:
Order:
Conversion:
Decimals:
Latest Filings
Latest on Right
Historical
Capital IQ (Default)
Cash Flow
Restated
12 months
Sep-24-2016
USD
Restated
12 months
Sep-30-2017
USD
12 months
Sep-29-2018
USD
12 months
Sep-28-2019
USD
12 months
Sep-26-2020
USD
LTM
12 months
Dec-26-2020
USD
Net Income
Depreciation & Amort.
Depreciation & Amort., Total
45.687,0
10.505,0
10.505,0
48.351,0
10.157,0
10.157,0
59.531,0
10.903,0
10.903,0
55.256,0
12.547,0
12.547,0
57.411,0
11.056,0
11.056,0
63.930,0
10.906,0
10.906,0
Stock-Based Compensation
Other Operating Activities
Change in Acc. Receivable
Change In Inventories
Change in Acc. Payable
Change in Unearned Rev.
Change in Other Net Operating Assets
Cash from Ops.
4.210,0
5.424,0
527,0
217,0
2.117,0
(1.554,0)
(902,0)
66.231,0
4.840,0
5.800,0
(2.093,0)
(2.723,0)
8.966,0
(593,0)
(8.480,0)
64.225,0
5.340,0
(33.034,0)
(5.322,0)
828,0
9.175,0
(3,0)
30.016,0
77.434,0
6.068,0
(992,0)
245,0
(289,0)
(1.923,0)
(625,0)
(896,0)
69.391,0
6.829,0
(312,0)
6.917,0
(127,0)
(4.062,0)
2.081,0
881,0
80.674,0
7.139,0
146,0
(6.043,0)
(1.049,0)
18.697,0
2.437,0
(7.242,0)
88.921,0
Capital Expenditure
Cash Acquisitions
Divestitures
Invest. in Marketable & Equity Securt.
Net (Inc.) Dec. in Loans Originated/Sold
Other Investing Activities
Cash from Investing
(12.734,0)
(297,0)
(32.022,0)
(924,0)
(45.977,0)
(12.451,0)
(329,0)
(33.542,0)
(124,0)
(46.446,0)
(13.313,0)
(721,0)
30.845,0
(745,0)
16.066,0
(10.495,0)
(624,0)
58.093,0
(1.078,0)
45.896,0
(7.309,0)
(1.524,0)
5.335,0
(791,0)
(4.289,0)
(8.702,0)
(575,0)
10.452,0
(380,0)
795,0
24.954,0
24.954,0
(397,0)
(2.500,0)
(2.897,0)
3.852,0
28.662,0
32.514,0
(3.500,0)
(3.500,0)
6.969,0
6.969,0
(37,0)
(6.500,0)
(6.537,0)
6.963,0
6.963,0
(5.977,0)
(8.805,0)
(14.782,0)
16.091,0
16.091,0
(963,0)
(12.629,0)
(13.592,0)
13.903,0
(12.613,0)
495,0
(31.292,0)
555,0
(34.774,0)
669,0
(75.265,0)
781,0
(69.714,0)
880,0
(75.992,0)
878,0
(81.543,0)
For the Fiscal Period Ending
Currency
Short Term Debt Issued
Long-Term Debt Issued
Total Debt Issued
Short Term Debt Repaid
Long-Term Debt Repaid
Total Debt Repaid
Issuance of Common Stock
Repurchase of Common Stock
Common Dividends Paid
Total Dividends Paid
(12.150,0)
(12.150,0)
(12.769,0)
(12.769,0)
(13.712,0)
(13.712,0)
(14.119,0)
(14.119,0)
(14.081,0)
(14.081,0)
(14.155,0)
(14.155,0)
Special Dividend Paid
Other Financing Activities
Cash from Financing
(20.890,0)
(17.974,0)
(87.876,0)
(105,0)
(90.976,0)
(126,0)
(86.820,0)
(132,0)
(93.662,0)
(636,0)
(195,0)
5.624,0
24.311,0
(10.435,0)
(3.946,0)
1.316,0
10.444,0
44.058,0
44.968,0
(5.472,0)
22.057,0
Nov-05-2018
RS
REP
2.092,0
11.591,0
39.624,1
41.076,0
(190,0)
29.014,0
Oct-31-2019
RS
REP
3.022,0
10.417,0
47.482,3
49.507,3
(2.266,0)
432,0
Oct-30-2020
NC
REP
3.423,0
15.263,0
42.914,3
45.149,3
2.927,0
(7.819,0)
Oct-30-2020
NC
REP
3.002,0
9.501,0
60.387,4
62.183,0
(10.177,0)
2.499,0
Oct-30-2020
O
REP
2.850,0
6.895,0
66.893,4
68.597,1
(12.846,0)
1.290,0
Jan-28-2021
O
LTM
Net Change in Cash
Supplemental Items
Cash Interest Paid
Cash Taxes Paid
Levered Free Cash Flow
Unlevered Free Cash Flow
Change in Net Working Capital
Net Debt Issued
Filing Date
Restatement Type
Calculation Type
Apple Inc. (NasdaqGS:AAPL) > Financials > Ratios
Restatement:
Order:
Latest Filings
Latest on Right
Period Type:
Decimals:
Annual
Capital IQ (Default)
Ratios
12 months
Sep-24-2016
12 months
Sep-30-2017
12 months
Sep-29-2018
12 months
Sep-28-2019
12 months
Sep-26-2020
LTM
12 months
Dec-26-2020
Profitability
Return on Assets %
Return on Capital %
Return on Equity %
Return on Common Equity %
12,3%
18,8%
36,9%
36,9%
11,0%
16,5%
36,9%
36,9%
12,0%
18,8%
49,4%
49,4%
11,3%
19,0%
55,9%
55,9%
12,5%
21,5%
73,7%
73,7%
13,4%
24,1%
82,1%
82,1%
Margin Analysis
Gross Margin %
SG&A Margin %
EBITDA Margin %
EBITA Margin %
EBIT Margin %
Earnings from Cont. Ops Margin %
Net Income Margin %
Net Income Avail. for Common Margin %
Normalized Net Income Margin %
Levered Free Cash Flow Margin %
Unlevered Free Cash Flow Margin %
39,1%
6,6%
32,7%
27,8%
27,8%
21,2%
21,2%
21,2%
17,8%
20,4%
20,9%
38,5%
6,7%
31,2%
26,8%
26,8%
21,1%
21,1%
21,1%
17,5%
17,3%
17,9%
38,3%
6,3%
30,8%
26,7%
26,7%
22,4%
22,4%
22,4%
17,2%
17,9%
18,6%
37,8%
7,0%
29,4%
24,6%
24,6%
21,2%
21,2%
21,2%
15,8%
16,5%
17,4%
38,2%
7,3%
28,2%
24,1%
24,1%
20,9%
20,9%
20,9%
15,3%
22,0%
22,7%
38,8%
6,9%
29,0%
25,2%
25,2%
21,7%
21,7%
21,7%
15,8%
22,7%
23,3%
Asset Turnover
Total Asset Turnover
Fixed Asset Turnover
Accounts Receivable Turnover
Inventory Turnover
0,7x
8,7x
13,2x
58,6x
0,7x
7,5x
13,6x
40,4x
0,7x
7,1x
12,9x
37,2x
0,7x
6,6x
11,3x
40,1x
0,8x
6,6x
14,1x
41,5x
0,8x
7,2x
12,2x
39,7x
Short Term Liquidity
Current Ratio
Quick Ratio
Cash from Ops. to Curr. Liab.
Avg. Days Sales Out.
Avg. Days Inventory Out.
Avg. Days Payable Out.
Avg. Cash Conversion Cycle
1,4x
1,2x
0,8x
27,5
6,2
101,0
(67,3)
1,3x
1,1x
0,6x
27,2
9,2
105,2
(68,8)
1,1x
1,0x
0,7x
28,1
9,8
111,9
(74,0)
1,5x
1,4x
0,7x
32,3
9,1
114,8
(73,5)
1,4x
1,2x
0,8x
25,9
8,8
95,1
(60,4)
1,2x
1,0x
0,7x
29,7
9,2
109,6
(70,7)
For the Fiscal Period Ending
Long Term Solvency
Total Debt/Equity
Total Debt/Capital
LT Debt/Equity
LT Debt/Capital
Total Liabilities/Total Assets
EBIT / Interest Exp.
EBITDA / Interest Exp.
(EBITDA-CAPEX) / Interest Exp.
Total Debt/EBITDA
Net Debt/EBITDA
Total Debt/(EBITDA-CAPEX)
Net Debt/(EBITDA-CAPEX)
Altman Z Score
Growth Over Prior Year
Total Revenue
Gross Profit
EBITDA
EBITA
EBIT
Earnings from Cont. Ops.
Net Income
Normalized Net Income
Diluted EPS before Extra
Accounts Receivable
Inventory
Net PP&E
Total Assets
Tangible Book Value
Common Equity
Cash from Ops.
Capital Expenditures
Levered Free Cash Flow
Unlevered Free Cash Flow
Dividend per Share
Compound Annual Growth Rate Over Two Years
Total Revenue
Gross Profit
EBITDA
EBITA
67,9%
40,4%
58,8%
35,0%
60,1%
86,3%
46,3%
72,5%
38,9%
64,3%
106,8%
51,7%
87,5%
42,3%
70,7%
119,4%
54,4%
101,5%
46,2%
73,3%
187,1%
65,2%
163,8%
57,1%
79,8%
169,2%
62,9%
149,9%
55,7%
81,3%
41,2x
48,4x
39,7x
1,2x
NM
1,5x
NM
26,4x
30,8x
25,4x
1,6x
NM
2,0x
NM
21,9x
25,2x
21,1x
1,4x
NM
1,7x
NM
17,9x
21,4x
18,5x
1,4x
NM
1,6x
NM
23,1x
30,7x
28,1x
1,4x
NM
1,5x
NM
27,2x
31,2x
28,0x
1,3x
NM
1,5x
NM
3,6
3,39
3,8
3,95
5,0
5,05
(7,7%)
(10,0%)
(14,5%)
(17,2%)
(15,7%)
(14,4%)
(14,4%)
(15,4%)
(9,9%)
6,3%
4,7%
1,4%
2,2%
2,2%
5,8%
5,8%
4,4%
10,8%
15,9%
15,5%
14,4%
15,6%
15,6%
23,1%
23,1%
13,8%
29,4%
(2,0%)
(3,4%)
(6,5%)
(9,8%)
(9,8%)
(7,2%)
(7,2%)
(9,8%)
(0,3%)
5,5%
6,7%
1,1%
3,7%
3,7%
3,9%
3,9%
1,9%
10,4%
9,9%
12,3%
9,0%
12,2%
12,2%
11,1%
11,1%
10,1%
17,1%
(6,5%)
(9,2%)
20,2%
10,8%
13,5%
127,7%
25,1%
16,7%
29,7%
(18,5%)
22,3%
(2,6%)
(1,1%)
3,8%
(9,5%)
(7,4%)
(29,7%)
(1,1%)
21,3%
(4,3%)
29,2%
21,4%
(14,4%)
3,9%
8,4%
7,5%
(18,5%)
13,2%
(21,1%)
(20,2%)
10,1%
12,1%
4,5%
(3,0%)
(2,2%)
(10,1%)
(8,7%)
10,1%
(20,1%)
(20,1%)
20,6%
6,9%
19,8%
20,5%
13,3%
(15,5%)
(15,5%)
(10,4%)
(21,2%)
(9,6%)
(8,8%)
10,3%
(27,8%)
(27,8%)
16,3%
(30,4%)
40,7%
37,7%
6,0%
(26,0%)
(26,0%)
21,4%
(5,9%)
46,7%
43,6%
6,3%
8,6%
9,3%
8,0%
5,8%
(1,0%)
(2,9%)
(6,9%)
(8,0%)
11,0%
9,9%
7,7%
8,7%
6,5%
5,6%
3,4%
2,1%
1,7%
1,5%
(2,8%)
(3,3%)
6,0%
6,8%
3,5%
4,5%
EBIT
Earnings from Cont. Ops.
Net Income
Normalized Net Income
Diluted EPS before Extra
6,9%
7,5%
7,5%
7,1%
13,5%
(7,2%)
(4,8%)
(4,8%)
(6,0%)
(0,1%)
8,7%
14,1%
14,1%
9,0%
19,8%
2,1%
6,9%
6,9%
1,3%
13,6%
(3,3%)
(1,8%)
(1,8%)
(4,1%)
4,9%
4,5%
3,7%
3,7%
3,3%
10,3%
Accounts Receivable
Inventory
Net PP&E
Total Assets
(5,0%)
0,5%
14,4%
17,8%
3,0%
43,8%
22,6%
13,7%
21,3%
36,2%
23,7%
6,6%
13,3%
(8,0%)
5,2%
(5,0%)
(16,6%)
1,3%
4,8%
(5,9%)
22,4%
(0,2%)
(2,1%)
(2,7%)
Tangible Book Value
Common Equity
Cash from Ops.
Capital Expenditures
Levered Free Cash Flow
Unlevered Free Cash Flow
Dividend per Share
7,9%
7,2%
5,3%
15,3%
10,1%
10,8%
9,4%
10,2%
6,0%
(11,1%)
5,2%
(15,8%)
(14,6%)
10,1%
(5,4%)
(8,6%)
8,1%
2,2%
3,8%
4,9%
11,7%
(17,8%)
(17,8%)
3,9%
(8,2%)
4,1%
4,8%
11,8%
(21,9%)
(21,9%)
2,1%
(25,9%)
12,8%
12,1%
8,1%
(25,1%)
(25,1%)
8,3%
(20,8%)
21,7%
20,5%
7,0%
8,1%
9,4%
8,1%
6,3%
7,0%
7,2%
7,2%
7,0%
13,5%
7,8%
7,7%
5,8%
4,6%
5,3%
7,0%
7,0%
6,2%
12,6%
4,4%
2,8%
(0,3%)
(0,8%)
(0,2%)
3,7%
3,7%
0,2%
8,9%
6,5%
5,3%
2,7%
2,1%
2,1%
6,5%
6,5%
2,3%
12,7%
6,2%
6,0%
2,7%
2,6%
2,6%
5,9%
5,9%
1,5%
12,5%
7,1%
7,5%
4,7%
4,9%
4,9%
8,2%
8,2%
3,8%
15,0%
Accounts Receivable
Inventory
Net PP&E
Total Assets
6,3%
6,5%
17,6%
15,8%
0,8%
32,0%
17,9%
17,4%
11,2%
19,0%
22,5%
8,0%
13,3%
24,4%
11,4%
1,7%
(3,4%)
(5,8%)
10,3%
(4,8%)
5,0%
4,0%
4,0%
(4,5%)
Tangible Book Value
Common Equity
Cash from Ops.
Capital Expenditures
Levered Free Cash Flow
Unlevered Free Cash Flow
Dividend per Share
0,5%
1,3%
7,3%
16,0%
11,9%
12,6%
10,0%
9,3%
6,3%
2,5%
9,2%
2,9%
3,9%
9,7%
(1,0%)
(3,5%)
(1,6%)
5,8%
(5,3%)
(4,2%)
11,2%
(8,9%)
(11,0%)
1,6%
(6,2%)
(0,9%)
0,1%
11,2%
(21,3%)
(21,3%)
7,9%
(16,3%)
15,1%
14,8%
9,8%
(20,6%)
(22,1%)
10,8%
(10,0%)
14,1%
13,7%
9,5%
14,8%
14,0%
7,9%
5,1%
9,2%
9,6%
7,3%
6,9%
3,3%
2,3%
4,6%
3,9%
Compound Annual Growth Rate Over Three Years
Total Revenue
Gross Profit
EBITDA
EBITA
EBIT
Earnings from Cont. Ops.
Net Income
Normalized Net Income
Diluted EPS before Extra
Compound Annual Growth Rate Over Five Years
Total Revenue
Gross Profit
EBITDA
EBITA
EBIT
Earnings from Cont. Ops.
Net Income
Normalized Net Income
Diluted EPS before Extra
14,6%
12,1%
12,2%
12,0%
12,0%
12,4%
16,0%
4,1%
1,9%
2,1%
3,0%
3,0%
2,8%
7,9%
8,0%
7,3%
7,7%
10,0%
10,0%
7,8%
16,0%
4,8%
3,6%
4,0%
6,9%
6,9%
4,2%
13,0%
(1,3%)
(1,8%)
(1,4%)
1,5%
1,5%
(1,6%)
7,3%
0,6%
0,5%
0,9%
3,5%
3,5%
0,5%
9,4%
Accounts Receivable
Inventory
Net PP&E
Total Assets
24,0%
22,4%
28,3%
22,6%
10,3%
43,7%
16,9%
16,3%
12,1%
17,5%
20,0%
12,1%
5,6%
14,2%
12,6%
7,9%
(0,9%)
11,6%
15,1%
2,2%
15,9%
15,2%
11,2%
3,8%
Tangible Book Value
Common Equity
Cash from Ops.
Capital Expenditures
Levered Free Cash Flow
Unlevered Free Cash Flow
Dividend per Share
10,6%
10,9%
12,0%
24,5%
16,1%
16,5%
NA
3,5%
2,5%
4,8%
8,5%
4,9%
5,6%
44,6%
(1,9%)
(2,8%)
7,6%
10,3%
8,6%
9,5%
10,6%
(2,5%)
(4,1%)
3,0%
1,9%
3,4%
4,3%
10,5%
(10,0%)
(11,4%)
(0,1%)
(8,3%)
1,6%
2,0%
9,9%
(11,1%)
(12,4%)
3,5%
(5,7%)
3,4%
3,7%
9,7%
Times Series Ratio Analysis
Company Name: Apple Inc.
FY 2017
FY 2018
FY 2019
FY 2020
1.30
1.10
0.60
1.10
1.00
0.70
1.50
1.40
0.70
1.40
1.20
0.80
Long-term Solvency
Total Debt Ratio
Debt to Equity
Times Interest Earned
Cash Coverage
64.30%
86.30%
26.40
30.80
70.70%
106.80%
21.90
25.20
73.30%
119.40%
17.90
21.40
79.80%
187.10%
23.10
30.70
Asset Management
Inventory TO
Days in Inventory
Receivables TO
Avg Collection Period
Total Asset TO
40.40
9.20
13.60
27.20
0.70
37.20
9.80
12.90
28.10
0.70
40.10
9.10
11.30
32.30
0.70
41.50
8.80
14.10
25.90
0.80
21.10%
11.00%
36.90%
31.20%
22.40%
12.00%
49.40%
30.80%
21.20%
11.30%
55.90%
29.40%
20.90%
12.50%
73.70%
28.20%
Liquidity
Current Ratio
Quick Ratio
Cash Ratio
Profitability
Profit Margin
ROA
ROE
EBITDA Margin
Industry Analysis
Company Name: Apple Inc.
Your Company
FY 2019
FY 2020
Liquidity
Current Ratio
Quick Ratio
Cash Ratio
Industry Average
FY 2019
FY 2020
2.7000
1.5000
0.7000
2.5000
1.4000
0.8000
2.7000
1.5000
0.7000
2.5000
1.4000
0.8000
Long-term Solvency
Total Debt Ratio
Debt to Equity
Times Interest Earned
Cash Coverage
0.2710
0.0870
35.9000
73.8000
0.2840
0.0850
54.4000
98.7000
0.2710
0.0870
35.9000
73.8000
0.2840
0.0850
54.4000
98.7000
Asset Management
Inventory TO
Days in Inventory
Receivables TO
Avg Collection Period
Total Asset TO
7.9000
47.7000
6.8000
52.5000
0.9000
7.0000
48.8000
7.3000
50.2000
0.9000
7.9000
47.7000
6.8000
52.5000
0.9000
7.0000
48.8000
7.3000
50.2000
0.9000
0.0870
0.0530
0.1860
0.2320
0.1020
0.0620
0.2040
0.2570
0.0870
0.0530
0.1860
0.2320
0.1020
0.0620
0.2040
0.2570
Profitability
Profit Margin
ROA
ROE
EBITDA Margin
A Financial Analysis of ExxonMobil
FIN 6406
15 April 2019
Page | 1
Table of Contents
Part 1: The Company ................................................................................................................................. 2
Part 2: Financial Planning & Analysis ...................................................................................................... 6
Part 3: Pricing with Comparables ............................................................................................................. 8
Part 4: Capital Asset Pricing Model .......................................................................................................... 9
Part 5: Weighted Average Cost of Capital ............................................................................................. 10
Part 6: Estimating Firm Value ................................................................................................................ 11
Part 7: Strengths, Weaknesses, and Recommendation.......................................................................... 13
Page | 2
Part 1: The Company
ExxonMobil is a global, vertically integrated oil and gas company, with roots that trace
back to John D. Rockefeller’s Standard Oil Company. In 1999, the Exxon Corporation merged
with Mobil Oil to form the ExxonMobil Corporation, at the time creating the world’s largest oil
company and the third largest company in the world. Nowadays, ExxonMobil is recognized as a
part of “Big Oil,” a term that dates back to the 1960s and is used to categorize the five largest
publicly owned oil and gas corporations in the world.
In addition to being one of the world’s largest producers of oil, its residual products and
chemical feedstocks, their 2018 Results and Highlights report show that ExxonMobil had their
best year since 2014 in terms of revenue. On the operations and production front, ExxonMobil
produced 3,833 thousand barrels of oil-equivalent product in 2018 and refined an average of
4,272 thousand barrels of crude per day.
With oil and gas explorations taking place on six of the seven continents and operating
facilities in a large percentage of countries, it is no wonder that ExxonMobil sets themselves
apart as a global leader in both energy generation and chemical manufacturing.
Page | 3
Times Series Ratio Analysis
Company Name: ExxonMobil
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
0.8186
0.5048
0.6980
0.7897
0.4369
0.5622
0.8694
0.5259
0.4635
0.8159
0.4981
0.5204
0.8396
0.4855
0.6303
Long-term Solvency
Total Debt Ratio
Debt to Equity
Times Interest Earned
Cash Coverage
48.19%
16.08%
119.1678
179.6469
47.50%
21.88%
46.4148
104.4469
47.37%
24.60%
10.0132
51.3113
44.22%
21.77%
23.4176
53.1897
42.65%
19.04%
28.1188
51.6762
Asset Management
Inventory TO
Days in Inventory
Receivables TO
Avg Collection Period
Total Asset TO
14.3148
25.4978
16.3813
22.2814
1.0477
9.9386
36.7252
15.0928
24.1834
0.7036
8.4762
43.1792
13.7060
26.7034
0.6015
9.9185
36.7997
12.7141
28.7080
0.6986
10.6121
34.3947
13.6553
26.7293
0.8040
Profitability
Profit Margin
ROA
ROE
EBITDA Margin
8.92%
6.12%
18.59%
14.09%
6.69%
2.63%
9.25%
13.46%
3.91%
0.85%
4.78%
11.59%
8.31%
2.59%
10.78%
13.48%
7.46%
3.87%
10.90%
14.17%
Liquidity
Current Ratio
Quick Ratio
Cash Ratio
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Industry Analysis
Company Name: ExxonMobil
ExxonMobil
FY 2016
FY 2017
Liquidity
Current Ratio
Quick Ratio
Cash Ratio
Industry Average
FY 2016
FY 2017
0.8694
0.5259
0.4635
0.8159
0.4981
0.5204
1.4000
1.4000
0.7000
1.3000
1.4000
0.7000
Long-term Solvency
Total Debt Ratio
Debt to Equity
Times Interest Earned
Cash Coverage
0.4737
0.2460
10.0132
51.3113
0.4422
0.2177
23.4176
53.1897
0.5770
0.8570
3.4000
6.5000
0.5520
0.7080
5.3000
8.8000
Asset Management
Inventory TO
Days in Inventory
Receivables TO
Avg Collection Period
Total Asset TO
8.4762
43.1792
13.7060
26.7034
0.6015
9.9185
36.7997
12.7141
28.7080
0.6986
7.7000
42.0000
11.4000
28.7000
0.6000
8.8000
44.2000
11.8000
31.4000
0.7000
0.0391
0.0085
0.0478
0.1159
0.0831
0.0259
0.1078
0.1348
0.0440
0.0150
0.0250
0.1490
0.0990
0.0270
0.0620
0.1830
Profitability
Profit Margin
ROA
ROE
EBITDA Margin
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Part 2: Financial Planning & Analysis
In the tables above, an analysis of ExxonMobil’s liquidity, solvency, asset management
and profitability margins were tracked over the last several years, and then compared to the
industry average for financial years 2016 and 2017. On first glance it becomes clear that 2014
was a five-year high for many of the ratios and 2016 was the corresponding five-year low for the
ratios and they have seen mixed movement since.
Usually, it is optimal to have a current ratio greater than one, however ExxonMobil has
current ratios of 0.8694 and 0.8159 in FY 2016 and 17, respectively. This means they aren’t
holding enough assets to cover their liabilities. This decrease can be attributed to Exxon’s current
liabilities experiencing more growth, about $10 million, than their current assets, which only
increased by about $6 million between 2016 and 2017. This increase marked the first increase in
both current assets and liabilities, after falling the two years prior.
ExxonMobil’s cash ratio is the closest to the industry average but still indicates a possible
weakness for the company. In FY 2016, Exxon’s cash ratio was 0.5204, just below to the
industry average of 0.70. This could be a signal to shareholders as well as market analysts that
the corporation could need additional cash to cover their short-term debt. However, given the
history of the company, their dominance and their storied presence in the oil industry, it is highly
unlikely that they will default any time soon.
A notable strength for ExxonMobil is their cash coverage, or their ability to pay off their
debt. In 2014 the ratio reached a high of 179.65 and has since fallen about 70% to 53.19 in 2017.
Despite this decrease, ExxonMobil has a cash coverage ratio about 6 times greater than the
industry average, a sign that their operating cash flow is effective at paying off any interest
expense they may have.
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ExxonMobil’s debt to equity ratios were again far below the industry average, however in
this case it works in their favor, as they have less debt and greater equity than their industry
competitors, a positive sign for both shareholders and market analysts.
Regarding industry averages, ExxonMobil’s asset management ratios are the closest to
industry averages, indicating their ability to manage their assets. ExxonMobil’s best year for
inventory turnover was again 2014, when nearly all of their ratios were at their peak, at 14.31x.
after declining to a five year low of 8.48x in 2016, Exxon’s inventory turnover has been on the
rise, suggesting that in recent years their ability to market and turn over their inventory as it
relates to sales in recently. However, as it relates to the market, ExxonMobil is better at turning
over their inventory than the industry.
Exxon’s days in inventory ratio fell nearly 7 days to average 36.80 days in inventory in
2017, while the industry experienced an increase in the average days in inventory. This shows
that ExxonMobil is doing a better job at not only managing their inventory, but at reducing the
number of days their products spend in inventory.
ExxonMobil experienced their worst year for profit margin in 2016, keeping just 3.91%
of their total sales, before increasing in 2017. Although a profit margin of 3.91% seems low, the
industry average for 2016 was just 4.4.%, meaning ExxonMobil wasn’t doing too poorly.
Without looking more closely, it would seem that either Exxon’s net income was low or their
sales were high. In looking at the data, the company’s net income more than doubled between
2016 and 2017 with sales staying relatively steady.
Additionally, between 2016 and 2017, the industry as a whole saw profit margins (along
with many other profitability ratios) more than double, with ExxonMobil experiencing an 8.31%
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profit margin compared to the industry’s 9.9%. This could be considered a weakness of the
company when compared to other large market companies that have much higher profit margins.
Exxon’s ROE is the only profitability measure that was greater than industry averages,
even at their lowest at 4.78% in 2016, and reached 10.78% in 2017 while the industry only
averaged around 6.2%. This increase shows the company’s shareholders, along with the market,
that ExxonMobil is effectively using their assets to generate profits.
Internal & Sustainable Growth Rate
Growth Rates
2017
2018
Payout Ratio
0.659614
0.662092
Retention Ratio (1-PR)
0.340386
0.337908
Internal Growth Rate
2017
2018
ROA
0.025909
0.038745
IGR
0.008897529 0.013265926
Sustainable Growth Rate
2017
2018
ROE
0.107772
0.109004
SGR
0.038081048
0.0382419
Part 3: Pricing with Comparables
Pricing with Earnings Per Share
Diluted EPS Excl. Extra Items
$4.63
Industry P/E Ratio
16.8
Price
$77.78
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Pricing with EV/EBITDA
EBITDA
$ 31,967.00
Industry EV/EBITDA
$
6.20
Enterprise Value (EV)
$ 198,195.40
Less: LT Debt
$ (23,079.00)
Add: Cash/Equivalence
$ 3,177.00
Market Cap
$ 178,293.40
Market Cap
$ 178,293.00
Number of Shares Outstanding
4,329
Price $
41.19
Part 4: Capital Asset Pricing Model
In doing research to determine ExxonMobil’s beta on March 27, 2019, the five sources that I
checked (see below) had their beta valued between 0.90-1.04, so I took the average of these
values to get a beta of 0.956. This allowed the expected return to be calculated, also seen below.
Beta
Source
Yahoo Finance
Reuters
Zacks
Nasdaq
MarketWatch
Average Beta
Value
1.04
0.9
0.91
1.01
0.92
0.956
Variable
Value
Risk Free Rate
0.0241
Market Risk Premium
0.086
Beta
0.956
Expected Return
0.106316
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Part 5: Weighted Average Cost of Capital
Bond Yields
2.475
2.409
2.72
3.58
2.539
2.874
3.662
2.482
Average Yield 2.8426
ExxonMobil’s required rate of return on debt was calculated by visiting FINRA and taking an
average of the bond yields that expire in more than a year.
WACC
Number of Shares
4234.8
Current Price
$
80.40
Equity
$ 340,477.92
Equity
Debt
Total
Cost of Equity
Cost of Debt
Required Rate
Required Rate on Debt
Tax Rate
WACC
$ 340,477.92
$
23,079
$ 363,556.92
0.9365189
0.0634811
0.10236
0.0284
0.21
0.097287652
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Part 6: Estimating Firm Value
EBIT
Taxes
Profit After Tax
ExxonMobil Free Cash Flows
FY 2014 FY 2015 FY 2016
$ 34,082 $ 14,435 $ 4,536
$ 18,015 $ 5,415 $ (406)
$ 16,067 $ 9,020 $ 4,942
FY 2017
$ 14,074
$ (1,174)
$ 15,248
FY 2018
$ 21,539
$ 9,532
$ 12,007
Depreciation
Investment in NWC
+ Misc ST Assets
+ Misc ST Liabilities
NWC
Change in NWC
$ 17,297 $ 18,048 $ 18,708 $ 17,893 $ 18,045
Capital Expenditures
$ 32,952 $ 26,490 $ 16,163 $ 15,402 $ 19,574
$ 52,910 $ 42,623 $ 41,416
$ 64,633 $ 53,976 $ 47,638
$ (11,723) $ (11,353) $ (6,222)
$
370 $ 5,131
Free Cash Flow
$
Average Free Cash Flow $ 8,431
$ 47,134
$ 57,771
$ (10,637)
$ (4,415)
$ 47,973
$ 57,138
$ (9,165)
$ 1,472
208 $ 2,356 $ 22,154 $ 9,006
WACC
0.097287652
Single Stage Model
Growth Rate
PV of Business
LT Debt
Value of Equity
Number of Shares
Price
$
$
$
$
0.0725
364,788.39
19,235
345,553.39
4234.8
81.60
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Two Stage Model
Growth Rate 1 (5 Years)
LT Growth Rate
FCF1
FCF2
FCF3
FCF4
FCF5
FCF6
Horizon Value
PV of Business
Value of Equity
Price
$
$
$
$
$
$
$
$
$
$
0.095
0.062
9,231.95
10,108.98
11,069.33
12,120.92
13,272.41
14,095.30
399,439.90
278,805.42
259,570.42
61.29
ValueLine is estimating ExxonMobil’s growth rate to be around 9.5% over the next
several years, just below the calculated value for Weighted Average Cost of Capital of 9.729%
seen in the previous section. Although I did not come out with a negative share price when using
ValueLine’s growth rate, it did leave me with a share price that is greater than 10x the current
price, about $950, which led me to experiment with other growth rates. Before I settled on a
single stage growth rate, I also worked with the two-stage growth model, using the ValueLine
growth rate and a long-term growth rate of 6.2% found on Finbox. This method returned an
estimated value per share of $61.29, which is nearly 30% below the current share value. After
playing around with the different growth models, I determined that a growth rate of 7.25% was
appropriate for ExxonMobil and gave me an estimated value per share of $81.60. I believe this is
also appropriate because a company like ExxonMobil, that has been around for decades, is
expected to have a life that extends far into the future. In terms of growth rates, I am not aware of
any new development in obtaining oil from shale or offshore reserves that would cause a shortterm growth rate that is greater or less than the 7.25% that I estimated. I think the growth rate
projected by ValueLine is slightly too optimistic for Exxon and doesn’t match the direction that
the industry is moving, away from energy generation that contributes to pollution and climate
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change, and towards more renewable forms of energy generation like solar, hydropower and
geothermal power generation.
Part 7: Strengths, Weaknesses, and Recommendation
As a company with roots that trace back to Standard Oil in 1870, Exxon and Mobil
withstood the test of Standard Oil dissolving into the seven sisters, only for the two of the
companies to merge in 1999, coming together once more – now as ExxonMobil. In being a
vertically integrated oil and gas company, they facilitate the entire production process, from the
research and exploration phase, to refining crude oil and separating it into petroleum and other
residual feedstocks, to finally providing gasoline to consumers at the tank. This has allowed them
to obtain revenues from not just their oil and gas operations, but from their petrochemical
operations and other joint ventures with international oil companies.
Tapping into natural gas reserves and extracting crude from the Bakken region in North
Dakota, ExxonMobil is poised to be relevant in the oil and gas marketplace for many years to
come.
Strengths: As we reviewed in section 2 of this analysis, in most of the ratio categories
ExxonMobil is falling behind their competitors in the industry in many different measures of
company success. However, despite many of these ratios fluctuating over the past 5 years, the
one category where ExxonMobil excelled compared to the industry was the asset management
ratios, specifically in inventory turnover and days in inventory.
Another strength was present in part 3 of this analysis, when Exxon’s stock price was
estimated by first using the EPS method, and second using the EV/EBITDA method. In pricing
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with the company’s earnings per share, a stock price of $77.78 was calculated, which is just
below the current stock price which is fluctuating between $80-81 per share in the market.
However, when pricing the stock using the EV/EBITDA method, a price of $41.19 was
calculated. The market is much more optimistic about ExxonMobil in comparison to the average
oil and gas company.
With the average beta for ExxonMobil falling between 0.9 and 1, it demonstrates that the
stock is viewed as having the same volatilely as the market to being about 10% less volatile than
the market. This shows confidence in ExxonMobil’s ability to weather market shocks, which for
a large, multinational corporation, is hopefully expected.
Additionally, when looking at growth rates for all of the ratios assessed in part 2, all have
increased from the year previous, and most notably capital expenditures are down 4.7%,
indicating that ExxonMobil isn’t being as aggressive in investing in new projects that involve
large expenditures. The largest year on year increase occurred in the company’s EBIT and
EBITDA, both rising about 210.3%, demonstrating to the market that earnings are rising. When
combined with a decrease in capital expenditures as mentioned above, ExxonMobil is making
smart decisions in the current state of the global market.
Weaknesses: Many of ExxonMobil’s liquidity and long-term solvency ratios were far below
industry averages, which indicates to the market an inability of the company to cover their shortterm debt, raises concern about their measures of operating profit and operating cash flow.
Overall, it could express that ExxonMobil has too much debt, and in the event of a market shock
they may not be able to pay off this debt. Some external factors that could negatively impact
ExxonMobil’s stock price is the actions of OPEC, and if they continue to flood the market with
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oil, and any environmental damage that their products do on a large scale, much like the Valdez
oil spill of 1989 off the coast of Alaska.
Recommendation: In terms of whether someone should buy, sell or hold ExxonMobil’s stock,
would advise my client to buy stocks in ExxonMobil. In pricing the value of the stocks in part 3,
both methods valued the stock price below the current market price, shedding light on the
market’s confidence in ExxonMobil. They are doing a great job at turning over inventory and
collecting cash from their buyers. Even though some of their liquidity ratios fell far below
industry averages, after reaching five-year lows across the board in 2016, the ratios are seeing a
rapid increase, I would expect that they improve even more in the years to come. I might not
recommend that my client hold this stock for the long term, as consumers continue to be more
concerned with the effects of greenhouse gases and emissions on the environment and the earth
as a whole.
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