General presentation of the ExxonMobil Corporation:
First of all, it is important to perfect your knowledge of ExxonMobil if you wish to invest in its stock on the stock market. So, here's a detailed presentation of this group, which is one of the giants of the oil and gas industry today. This information will be useful to you for your analyses of this value and will particularly allow you to understand the future challenges of the company and its growth possibilities.
The ExxonMobil Corporation group is an American company specializing in the petroleum sector. It is also one of the largest oil groups in the world.
In reality, ExxonMobil's activities are diverse and varied and can be divided into three distinct divisions. The first division being the refining and distribution of petroleum which still generates more than 80% of the turnover of this company today. This division includes the production of barrels of various petroleum products such as diesel, gasoline, fuel oil, lubricants and even engine oils. In 2020, the ExxonMobil group operated no less than 21,409 service stations with the Exxon, Mobil and Esso brands.
The second business area of the ExxonMobil group is petro-chemicals. This refers to the production and sale of oils, aromatics, alcohols, ethylene, elastomers, propylene and polymers. In 2019, the group sold over 26.5 million tonnes of these products, mainly to the pharmaceutical, cosmetic, textile and electrical industries. These activities generate approximately 10% of the group's turnover.
ExxonMobil's last activity is that of exploration and production of hydrocarbons for which it is currently the world leader with a production of over 2.4 million barrels each day.
The geographical distribution of the ExxonMobil group's revenues is also international with approximately 35.1% of the turnover realized in the United States, 7.7% in Canada, 6.8% in the United Kingdom, 5% in France, 4.7% in Singapore, 4.6 % in Belgium, 4.1% in Italy and 32% in the rest of the world.
What are the strengths and weaknesses of ExxonMobil in its market?
Now that you know the activities and the different segments in which ExxonMobil operates, you should also be interested in the strengths and weaknesses of the company in its sector. This will help you learn more about its ability to compete and therefore support its growth in the future.
Among the advantages available to the ExxonMobil group, there is of course its brand image, which is one of the strongest in the world and allows it to be recognized everywhere. But that's not all! In fact, ExxonMobil also differentiates itself from its competitors by investing heavily in research and development and by significantly diversifying its activities. From a financial point of view, the increasing performance of this group for several years is also a strong point. It should be said that ExxonMobil benefits from a significant production force with more than 83,000 employees working in several oil refineries located in 21 different countries.
But the ExxonMobil group also has some weaknesses that you should also be aware of before starting to analyse the stock market. First of all, the group shows a criticized management of its employees around the world and depending on the regions which can penalize it in terms of image. ExxonMobil has also encountered certain legal and human rights problems in the past. The environmental aspect is also a weak point of this group which presents risks in terms of oil spills. Finally, ExxonMobil also suffers from old problems of fraud and cases of corruption in certain global operations which can also cost it dearly in terms of notoriety and image.
How to perform the fundamental analysis of the ExxonMobil share price?
You'll be able to get a more precise idea of the growth capacities of this company with the elements that we've just revealed to you regarding the ExxonMobil group and therefore of its stock market share. But in order to do so, you'll need to carry out a complete fundamental analysis of this stock, also focusing on upcoming events and posts that could encourage or penalize it.
Among the most influential factors for this value, there's the increase in demand for LPG which can be used to improve its sales in this area and/or the significant investments that the group can make in the future in order to diversify its activities. You should of course also closely monitor the price of fuels throughout the world as well as the evolution of the price of crude oil on the commodity market. This will require careful monitoring of all decisions taken by OPEC or OPEC +.
You will also need to keep an eye on environmental regulations around the world and on the arrangements put in place by ExxonMobil to comply with them. Finally, follow the competition that the group has to face by carrying out in-depth analyses of other companies in this sector of activity.
How to set up a technical analysis of the ExxonMobil share price?
We've just seen how it's possible to perform a quality fundamental analysis to try to anticipate possible future variations in the price of the ExxonMobil stock. But like any self-respecting stock investor, you know that this analysis alone is not enough to detect interesting signals about this stock. You must also carry out a detailed and complete technical analysis of this share.
To do so, you must make an intelligent and reliable interpretation of the movements observed from the charts provided by your broker. To that end, it is important to use several reading methods and therefore several technical indicators. One of the advantages of using innovative and technological charts here is that you'll no longer need to do the calculations necessary to assess the volatility or trend of the ExxonMobil stock yourself but simply interpret them. These charts allow you to display these elements directly on the performance curves of the asset being monitored.
As far as the indicators that you should use are concerned, they can be strategic points or levels of acceleration or trend reversal such as pivot points, supports and resistances for the most famous or volatility indicators or trend like Bollinger bands, MACD and even moving averages. However, always make sure to adapt the frequency and type of display of your charts before these analyses.