XOM
ExxonMobil Holdings Corporation
Energy · Oil & Gas Integrated · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 49.9/100 reflects a mixed profile: a perfect financial health score anchored by a 0.13 debt-to-equity ratio and 68.4x interest coverage is offset by weak growth scores driven by broad-based contraction in revenue, net income, and EPS in FY2025.
- Below-midpoint momentum scoring reflects the sharp sequential decline in net income from $7,548,000,000 in 2025Q3 to $4,183,000,000 in 2026Q1, even as revenue remained relatively range-bound across the same period.
- The theme factor scored zero despite XOM's assignment to the Energy Security macro theme, and the dividend factor was tempered by a 59.7% payout ratio, both of which weighed on the composite without offsetting the financial health strength.
Why Not Higher
- Growth was penalized heavily for broad-based contraction across revenue, net income, and EPS in FY2025, with earnings falling at nearly three times the rate of revenue, and the momentum factor reflected continued sequential deterioration into 2026Q1.
- The Energy Security theme assignment did not translate into a positive score under the model's current methodology, and the dividend score was moderated by a 59.7% payout ratio that limits perceived financial flexibility.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from $349,585,000,000 in FY2024 to $332,238,000,000 in FY2025, a drop of 5.0%. Net income fell from $33,680,000,000 in FY2024 to $28,844,000,000 in FY2025, a decline of 14.4%, while diluted EPS contracted from $7.84 in FY2024 to $6.70 in FY2025, a decrease of 14.5%.
The model penalized XOM heavily for broad-based contraction across all three key growth metrics in FY2025, with earnings declining at nearly three times the rate of revenue, signaling margin compression on top of top-line weakness.
In FY2025, XOM posted a net margin of 8.7%, an operating margin of 12.4%, and a return on assets of 6.4%.
These figures reflect a company that remains solidly profitable in absolute terms, and the model rewarded the positive margins and asset returns, though the scores suggest they fall short of the highest tier benchmarks the model uses for this sector.
XOM reported a debt-to-equity ratio of 0.13 in FY2025, an interest coverage ratio of 68.4 in FY2025, and total assets of $448,980,000,000 in FY2025.
An extremely low debt-to-equity ratio and an interest coverage ratio of 68.4x indicate that XOM carries minimal leverage and generates operating income far in excess of its interest obligations, which the model rewarded with a perfect score.
Revenue across the last four quarters was $81,506,000,000 in 2025Q2, $85,294,000,000 in 2025Q3, $82,308,000,000 in 2025Q4, and $85,138,000,000 in 2026Q1, showing no clear upward trend. Net income declined from $7,548,000,000 in 2025Q3 to $6,501,000,000 in 2025Q4 and further to $4,183,000,000 in 2026Q1, and operating income similarly fell from $10,932,000,000 in 2025Q3 to $6,967,000,000 in 2026Q1.
While revenue has been relatively range-bound, the sharp sequential deceleration in both net income and operating income through the most recent quarters signals deteriorating earnings momentum, which the model reflected in a below-midpoint score.
XOM has grown its dividends per share each year from $3.55 in FY2022 to $3.68 in FY2023, $3.84 in FY2024, and $4.00 in FY2025. The dividend payout ratio stood at 59.7% of net income in FY2025.
The model recognized a consistent multi-year dividend growth streak, but the payout ratio of 59.7% in FY2025 indicates that a meaningful share of earnings is committed to dividends, which may limit flexibility and temper the score relative to companies with lower payout ratios or faster dividend growth rates.
XOM is assigned to the Energy Security macro theme.
Although XOM carries the Energy Security theme assignment, this assignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
ExxonMobil (XOM) earned a composite score of 49.9/100 with a Very Low risk rating and a Research Further label, reflecting a company in strong financial health but facing meaningful headwinds in growth and earnings momentum. Revenue declined 5.0% year-over-year to $332,238,000,000 in FY2025, while net income fell 14.4% to $28,844,000,000, with earnings declining at nearly three times the rate of revenue, signaling margin compression. The balance sheet is a clear standout, with a debt-to-equity ratio of just 0.13 and an interest coverage ratio of 68.4x, earning a perfect financial health score. Dividends per share have grown consistently from $3.55 in FY2022 to $4.00 in FY2025, though a payout ratio of 59.7% and deteriorating recent quarterly earnings temper the overall picture.
Plain English
ExxonMobil is a financially rock-solid company with almost no debt and strong dividends that keep growing every year, but its revenues and profits have been shrinking lately, and recent quarterly earnings have been falling sharply, which is why the model says to research it further before acting.
Bull Case vs. Bear Case
Bull Case
- XOM's balance sheet is exceptionally strong, with a debt-to-equity ratio of just 0.13 and an interest coverage ratio of 68.4x in FY2025, meaning the company carries minimal leverage and its operating income dwarfs its interest obligations by a wide margin.
- XOM has delivered consistent dividend growth every year from $3.55 per share in FY2022 to $4.00 per share in FY2025, demonstrating a multi-year commitment to returning capital to shareholders.
- Despite top-line and earnings pressure, XOM remained solidly profitable in FY2025, posting a net margin of 8.7%, an operating margin of 12.4%, and a return on assets of 6.4%, reflecting durable underlying profitability.
Bear Case
- Revenue fell 5.0% and net income dropped 14.4% in FY2025, with diluted EPS contracting from $7.84 to $6.70, as earnings declined at nearly three times the rate of revenue, pointing to meaningful margin compression.
- Recent quarterly earnings momentum has deteriorated sharply, with net income falling from $7,548,000,000 in 2025Q3 to $4,183,000,000 in 2026Q1 and operating income declining from $10,932,000,000 to $6,967,000,000 over the same period.
- The dividend payout ratio stood at 59.7% of net income in FY2025, meaning a substantial share of earnings is committed to dividends, which could limit financial flexibility if earnings continue to weaken.
What Could Change the Picture
Bullish Triggers
- A reversal in the sequential earnings decline — particularly if net income and operating income stabilize or recover from the 2026Q1 trough of $4,183,000,000 and $6,967,000,000 respectively — would meaningfully improve the momentum picture.
- Margin recovery that narrows the gap between the 5.0% revenue decline and the 14.4% net income decline would signal that the compression dynamic is easing and support a more constructive view on profitability.
Bearish Triggers
- If the payout ratio of 59.7% rises further due to continued earnings declines, dividend sustainability could come into question, undermining one of XOM's key investment attributes.
- Continued sequential deterioration in operating income — which has already fallen from $10,932,000,000 in 2025Q3 to $6,967,000,000 in 2026Q1 — would deepen concerns about the durability of XOM's profitability.
Risk Profile
Very Low RiskXOM's Very Low risk rating is strongly supported by its balance sheet, where a debt-to-equity ratio of 0.13 and an interest coverage ratio of 68.4x in FY2025 indicate the company is far from financial distress. However, the sharp sequential decline in operating income from $10,932,000,000 in 2025Q3 to $6,967,000,000 in 2026Q1 introduces operational risk that warrants monitoring.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.