OCCIDENTAL PETROLEUM CORP (OXY) Stock Fundamental Analysis
NYSE:OXY - New York Stock Exchange, Inc. - US6745991058 - Common Stock - Currency: USD
OXY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. OXY has a medium profitability rating, but doesn't score so well on its financial health evaluation. OXY is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OXY was profitable.
OXY had a positive operating cash flow in the past year.
In multiple years OXY reported negative net income over the last 5 years.
Of the past 5 years OXY 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OXY (4.30%) is comparable to the rest of the industry.
OXY's Return On Equity of 10.63% is in line compared to the rest of the industry. OXY outperforms 47.55% of its industry peers.
OXY has a Return On Invested Capital (6.28%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for OXY is significantly below the industry average of 28.75%.
The 3 year average ROIC (10.72%) for OXY is well above the current ROIC(6.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 10.63% | ||
| ROIC | 6.28% |
ROA(3y)8.12%
ROA(5y)0.77%
ROE(3y)20.51%
ROE(5y)-5.15%
ROIC(3y)10.72%
ROIC(5y)N/A
1.3 Margins
OXY has a Profit Margin (13.59%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OXY has declined.
The Operating Margin of OXY (21.11%) is comparable to the rest of the industry.
OXY's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 61.77%, OXY is doing good in the industry, outperforming 67.65% of the companies in the same industry.
In the last couple of years the Gross Margin of OXY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.11% | ||
| PM (TTM) | 13.59% | ||
| GM | 61.77% |
OM growth 3YN/A
OM growth 5Y-4.45%
PM growth 3YN/A
PM growth 5Y-10.42%
GM growth 3Y2.44%
GM growth 5Y-0.96%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OXY is still creating some value.
OXY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that OXY is in the distress zone and has some risk of bankruptcy.
OXY has a Altman-Z score of 1.46. This is comparable to the rest of the industry: OXY outperforms 48.53% of its industry peers.
The Debt to FCF ratio of OXY is 5.87, which is a neutral value as it means it would take OXY, 5.87 years of fcf income to pay off all of its debts.
OXY has a Debt to FCF ratio of 5.87. This is comparable to the rest of the industry: OXY outperforms 55.39% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that OXY is somewhat dependend on debt financing.
The Debt to Equity ratio of OXY (0.73) is worse than 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.74
WACC8.51%
2.3 Liquidity
OXY has a Current Ratio of 1.00. This is a normal value and indicates that OXY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.00, OXY is doing worse than 63.24% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that OXY may have some problems paying its short term obligations.
OXY has a Quick ratio of 0.76. This is in the lower half of the industry: OXY underperforms 66.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for OXY have decreased by -6.23% in the last year.
OXY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.39% yearly.
EPS 1Y (TTM)-6.23%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%8.11%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.19%
3.2 Future
OXY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.91% yearly.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y2.11%
EPS Next 2Y8.29%
EPS Next 3Y2.02%
EPS Next 5Y10.91%
Revenue Next Year6.62%
Revenue Next 2Y5.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.57, OXY is valued correctly.
OXY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of OXY to the average of the S&P500 Index (29.63), we can say OXY is valued rather cheaply.
OXY is valuated correctly with a Price/Forward Earnings ratio of 14.27.
The rest of the industry has a similar Price/Forward Earnings ratio as OXY.
OXY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 14.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OXY is valued a bit cheaper than 64.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OXY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.42 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OXY does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.91
PEG (5Y)0.89
EPS Next 2Y8.29%
EPS Next 3Y2.02%
5. Dividend
5.1 Amount
OXY has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.75, OXY is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.29, OXY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of OXY decreases each year by -13.32%.
OXY has been paying a dividend for at least 10 years, so it has a reliable track record.
OXY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-13.32%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
OXY pays out 37.94% of its income as dividend. This is a sustainable payout ratio.
DP37.94%
EPS Next 2Y8.29%
EPS Next 3Y2.02%
50.42
-1.67 (-3.21%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners50.11%
Inst Owner Change-0.13%
Ins Owners0.27%
Ins Owner Change5.14%
Market Cap47.31B
Analysts68.39
Price Target62.13 (23.22%)
Short Float %5.46%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend1.53
Dividend Growth(5Y)-13.32%
DP37.94%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.93%
Min EPS beat(2)31.67%
Max EPS beat(2)34.19%
EPS beat(4)4
Avg EPS beat(4)18.43%
Min EPS beat(4)3.43%
Max EPS beat(4)34.19%
EPS beat(8)5
Avg EPS beat(8)10.07%
EPS beat(12)8
Avg EPS beat(12)9.88%
EPS beat(16)11
Avg EPS beat(16)62.25%
Revenue beat(2)1
Avg Revenue beat(2)-0.98%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)0.1%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-11.11%
Max Revenue beat(4)7.22%
Revenue beat(8)3
Avg Revenue beat(8)-1.47%
Revenue beat(12)6
Avg Revenue beat(12)0.01%
Revenue beat(16)9
Avg Revenue beat(16)0.45%
PT rev (1m)-0.05%
PT rev (3m)-3.47%
EPS NQ rev (1m)-3.81%
EPS NQ rev (3m)-33.91%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)6.58%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)-11.21%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 14.27 | ||
| P/S | 1.74 | ||
| P/FCF | 10.42 | ||
| P/OCF | 4.18 | ||
| P/B | 1.36 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)3.46
EY6.86%
EPS(NY)3.53
Fwd EY7.01%
FCF(TTM)4.84
FCFY9.6%
OCF(TTM)12.07
OCFY23.93%
SpS28.92
BVpS36.95
TBVpS36.95
PEG (NY)6.91
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.3% | ||
| ROE | 10.63% | ||
| ROCE | 7.51% | ||
| ROIC | 6.28% | ||
| ROICexc | 6.43% | ||
| ROICexgc | 6.43% | ||
| OM | 21.11% | ||
| PM (TTM) | 13.59% | ||
| GM | 61.77% | ||
| FCFM | 16.73% |
ROA(3y)8.12%
ROA(5y)0.77%
ROE(3y)20.51%
ROE(5y)-5.15%
ROIC(3y)10.72%
ROIC(5y)N/A
ROICexc(3y)10.96%
ROICexc(5y)N/A
ROICexgc(3y)11.03%
ROICexgc(5y)N/A
ROCE(3y)12.81%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.3%
ROICexc growth 3YN/A
ROICexc growth 5Y-7.78%
OM growth 3YN/A
OM growth 5Y-4.45%
PM growth 3YN/A
PM growth 5Y-10.42%
GM growth 3Y2.44%
GM growth 5Y-0.96%
F-Score4
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.87 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 95.28% | ||
| Cap/Sales | 24.99% | ||
| Interest Coverage | 5.26 | ||
| Cash Conversion | 88.14% | ||
| Profit Quality | 123.16% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.46 |
F-Score4
WACC8.51%
ROIC/WACC0.74
Cap/Depr(3y)63.41%
Cap/Depr(5y)65.56%
Cap/Sales(3y)15.13%
Cap/Sales(5y)17.92%
Profit Quality(3y)251.83%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.23%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%8.11%
EPS Next Y2.11%
EPS Next 2Y8.29%
EPS Next 3Y2.02%
EPS Next 5Y10.91%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-9.19%
Revenue Next Year6.62%
Revenue Next 2Y5.46%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.73%
EBIT growth 3YN/A
EBIT growth 5Y4.84%
EBIT Next Year100.31%
EBIT Next 3Y31.15%
EBIT Next 5Y18.29%
FCF growth 1Y-62.2%
FCF growth 3Y62.01%
FCF growth 5Y17.52%
OCF growth 1Y-28.91%
OCF growth 3Y46%
OCF growth 5Y9.92%