NEW YORK (TheStreet) -- Exxon Mobil Corp. (XOM) - Get Exxon Mobil Corporation Report stock is decreasing 0.73% to $78.75 in early afternoon trading on Monday after oil prices slipped as the global oversupply is expected to continue.
WTI crude is down 3.23% to $36.87 per barrel, while Brent crude is declining 2.64% to $36.89 per barrel this afternoon, according to the CNBC.com index.
Iran plans to prioritize increasing crude oil exports after economic sanctions are removed, Bloomberg reports.
The OPEC country will boost exports by 500,000 barrels a day within a week after the sanctions are lifted and by one million barrels a day within six months, Iranian Oil Minister Bijan Namdar Zanganeh said, according to Bloomberg.
"The fundamentals remain weak after last week's short-covering rally," Tradition Energy senior analyst Gene McGillian told Bloomberg. "Nobody appears to be cutting back on supply and we still have to contend with worries of slowing economic growth not only in China but also Europe."
Irving, TX-based Exxon Mobil is a global energy company that produces and refines crude oil.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate EXXON MOBIL CORP as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- XOM's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.48 is very weak and demonstrates a lack of ability to pay short-term obligations.
- XOM, with its decline in revenue, slightly underperformed the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 37.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, EXXON MOBIL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The share price of EXXON MOBIL CORP has not done very well: it is down 15.23% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: XOM