Can ExxonMobil Navigate Market Turbulence With Its Strong Balance Sheet?
With a debt-to-capitalization ratio of just 12.2%, ExxonMobil carries substantially less debt than the broader industry's 41.06%. At the end of the first quarter of 2025, ExxonMobil reported $30 billion in cash and marketable securities, reflecting a healthy liquidity position.
Coupled with diversified global operations and disciplined capital spending, ExxonMobil is well-positioned to generate robust cash flows and navigate commodity cycles effectively.
COP & CVX Also Have Healthy Balance Sheets
Like XOM, ConocoPhillips COP and Chevron Corporation CVX also have lower debt exposure.
The debt-to-capitalization of COP is 26.7%, while that of CVX is 16.5%. Thus, despite having significant exposure to exploration and production activities, both COP and Chevron can lean on their balance sheet to combat periods of low oil prices.
XOM's Price Performance, Valuation & Estimates
Shares of XOM have plunged 4.3% over the past year compared with the industry 's 2.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.93X. This is above the broader industry average of 4.36X.
The Zacks Consensus Estimate for XOM's 2025 earnings has been revised upward over the past seven days.
XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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