NEW YORK (TheStreet) -- Shares of Exxon Mobil (XOM - Get Report) are down 0.74% to $77.83 in afternoon trading on Friday after OPEC officials raised the oil cartel's official production ceiling at its bi-annual meeting in Vienna today.
OPEC raised its production cap to 31.5 million barrels per day, ahead of the target of 30 million barrels per day heading into the meeting, according to CNBC.
OPEC President Emmanuel Ibe Kachikwu said that the group would keep current production levels steady and that the target heading into today's meeting was 30 million barrels per day.
OPEC supplies rose to 31.77 million barrels per day in November from 31.64 million the previous month, according to Reuters.
Industry standard Brent crude for January delivery is down 1.32% to $43.26 per barrel today, while West Texas crude for January delivery is down 2.58% to $40.02 per barrel.
OPEC's next bi-annual meeting is scheduled for June 2, 2016.
TheStreet Ratings team rates EXXON MOBIL CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate EXXON MOBIL CORP (XOM) a HOLD. 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 36.7%. 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 14.28% 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