OCCIDENTAL PETROLEUM CORP (OXY) Stock Fundamental Analysis
USA - NYSE:OXY - US6745991058 - Common Stock
40.91 USD
-0.12 (-0.29%)
41.22 USD
+0.31 (+0.76%)
OXY gets a fundamental rating of 4 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year OXY was profitable.
OXY had a positive operating cash flow in the past year.
Of the past 5 years OXY 4 years were profitable.
Each year in the past 5 years OXY had a positive operating cash flow.
1.2 Ratios
OXY's Return On Assets of 2.00% is in line compared to the rest of the industry. OXY outperforms 41.71% of its industry peers.
OXY has a Return On Equity (4.72%) which is comparable to the rest of the industry.
OXY has a Return On Invested Capital (5.19%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for OXY is significantly below the industry average of 21.53%.
The 3 year average ROIC (9.21%) for OXY is well above the current ROIC(5.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 4.72% | ||
| ROIC | 5.19% |
ROA(3y)8.36%
ROA(5y)1.51%
ROE(3y)20.32%
ROE(5y)-3.19%
ROIC(3y)9.21%
ROIC(5y)N/A
1.3 Margins
OXY has a Profit Margin (6.21%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of OXY has grown nicely.
OXY has a Operating Margin (20.10%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of OXY has grown nicely.
OXY has a Gross Margin of 63.94%. This is in the better half of the industry: OXY outperforms 72.04% of its industry peers.
OXY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.1% | ||
| PM (TTM) | 6.21% | ||
| GM | 63.94% |
OM growth 3Y5.21%
OM growth 5Y7.97%
PM growth 3Y14.69%
PM growth 5YN/A
GM growth 3Y-0.7%
GM growth 5Y0.5%
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.
The number of shares outstanding for OXY has been increased compared to 1 year ago.
OXY has more shares outstanding than it did 5 years ago.
OXY has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that OXY is in the distress zone and has some risk of bankruptcy.
OXY has a Altman-Z score (1.40) which is in line with its industry peers.
The Debt to FCF ratio of OXY is 4.98, which is a neutral value as it means it would take OXY, 4.98 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.98, OXY is doing good in the industry, outperforming 64.45% of the companies in the same industry.
OXY has a Debt/Equity ratio of 0.65. This is a neutral value indicating OXY is somewhat dependend on debt financing.
OXY's Debt to Equity ratio of 0.65 is in line compared to the rest of the industry. OXY outperforms 40.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.98 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.68
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.05 indicates that OXY should not have too much problems paying its short term obligations.
OXY has a Current ratio (1.05) which is comparable to the rest of the industry.
OXY has a Quick Ratio of 1.05. This is a bad value and indicates that OXY is not financially healthy enough and could expect problems in meeting its short term obligations.
OXY has a Quick ratio (0.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for OXY have decreased strongly by -14.53% in the last year.
The Earnings Per Share has been growing by 16.39% on average over the past years. This is quite good.
OXY shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
The Revenue has been growing slightly by 5.03% on average over the past years.
EPS 1Y (TTM)-14.53%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%-62.14%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y0.98%
Revenue growth 5Y5.03%
Sales Q2Q%-6.15%
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 8.13% yearly.
The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y-31.56%
EPS Next 2Y-8.84%
EPS Next 3Y1.92%
EPS Next 5Y8.13%
Revenue Next Year-1.72%
Revenue Next 2Y-4.22%
Revenue Next 3Y-0.73%
Revenue Next 5Y2.8%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.37, OXY is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of OXY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of OXY to the average of the S&P500 Index (27.77), we can say OXY is valued rather cheaply.
A Price/Forward Earnings ratio of 14.23 indicates a correct valuation of OXY.
The rest of the industry has a similar Price/Forward Earnings ratio as OXY.
The average S&P500 Price/Forward Earnings ratio is at 23.23. OXY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OXY is valued a bit cheaper than 77.73% of the companies in the same industry.
81.52% of the companies in the same industry are more expensive than OXY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.43 | ||
| EV/EBITDA | 4.67 |
4.3 Compensation for Growth
The decent profitability rating of OXY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-8.84%
EPS Next 3Y1.92%
5. Dividend
5.1 Amount
OXY has a Yearly Dividend Yield of 2.34%.
OXY's Dividend Yield is comparable with the industry average which is at 6.30.
OXY's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of OXY decreases each year by -13.01%.
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)-13.01%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
OXY pays out 90.51% of its income as dividend. This is not a sustainable payout ratio.
DP90.51%
EPS Next 2Y-8.84%
EPS Next 3Y1.92%
40.91
-0.12 (-0.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners50.39%
Inst Owner Change-0.04%
Ins Owners0.3%
Ins Owner Change1%
Market Cap40.27B
Analysts67.33
Price Target51.64 (26.23%)
Short Float %5.15%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend1.59
Dividend Growth(5Y)-13.01%
DP90.51%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.66%
Min EPS beat(2)12.14%
Max EPS beat(2)35.18%
EPS beat(4)4
Avg EPS beat(4)23.8%
Min EPS beat(4)12.14%
Max EPS beat(4)35.18%
EPS beat(8)8
Avg EPS beat(8)21.66%
EPS beat(12)8
Avg EPS beat(12)11.63%
EPS beat(16)12
Avg EPS beat(16)13.13%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)1.85%
Revenue beat(4)1
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)1.85%
Revenue beat(8)4
Avg Revenue beat(8)-0.9%
Revenue beat(12)4
Avg Revenue beat(12)-1.52%
Revenue beat(16)8
Avg Revenue beat(16)-0.2%
PT rev (1m)-0.5%
PT rev (3m)1.24%
EPS NQ rev (1m)8.64%
EPS NQ rev (3m)-23.84%
EPS NY rev (1m)2.11%
EPS NY rev (3m)-9.07%
Revenue NQ rev (1m)-1.4%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.48%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 14.23 | ||
| P/S | 1.48 | ||
| P/FCF | 8.43 | ||
| P/OCF | 3.32 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 4.67 |
EPS(TTM)3.06
EY7.48%
EPS(NY)2.88
Fwd EY7.03%
FCF(TTM)4.85
FCFY11.86%
OCF(TTM)12.34
OCFY30.16%
SpS27.58
BVpS36.29
TBVpS36.29
PEG (NY)N/A
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 4.72% | ||
| ROCE | 7.2% | ||
| ROIC | 5.19% | ||
| ROICexc | 5.36% | ||
| ROICexgc | 5.36% | ||
| OM | 20.1% | ||
| PM (TTM) | 6.21% | ||
| GM | 63.94% | ||
| FCFM | 17.59% |
ROA(3y)8.36%
ROA(5y)1.51%
ROE(3y)20.32%
ROE(5y)-3.19%
ROIC(3y)9.21%
ROIC(5y)N/A
ROICexc(3y)9.39%
ROICexc(5y)N/A
ROICexgc(3y)9.46%
ROICexgc(5y)N/A
ROCE(3y)12.78%
ROCE(5y)N/A
ROICexcg growth 3Y1.28%
ROICexcg growth 5Y18.37%
ROICexc growth 3Y1.28%
ROICexc growth 5Y18.37%
OM growth 3Y5.21%
OM growth 5Y7.97%
PM growth 3Y14.69%
PM growth 5YN/A
GM growth 3Y-0.7%
GM growth 5Y0.5%
F-Score5
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.98 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 95.02% | ||
| Cap/Sales | 27.15% | ||
| Interest Coverage | 3.96 | ||
| Cash Conversion | 91.92% | ||
| Profit Quality | 283.27% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.4 |
F-Score5
WACC7.68%
ROIC/WACC0.68
Cap/Depr(3y)83.82%
Cap/Depr(5y)63.35%
Cap/Sales(3y)20.24%
Cap/Sales(5y)17.2%
Profit Quality(3y)148.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.53%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%-62.14%
EPS Next Y-31.56%
EPS Next 2Y-8.84%
EPS Next 3Y1.92%
EPS Next 5Y8.13%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y0.98%
Revenue growth 5Y5.03%
Sales Q2Q%-6.15%
Revenue Next Year-1.72%
Revenue Next 2Y-4.22%
Revenue Next 3Y-0.73%
Revenue Next 5Y2.8%
EBIT growth 1Y-2.38%
EBIT growth 3Y6.23%
EBIT growth 5Y13.4%
EBIT Next Year101.14%
EBIT Next 3Y30.9%
EBIT Next 5Y20.1%
FCF growth 1Y-43.2%
FCF growth 3Y-16.39%
FCF growth 5Y34.09%
OCF growth 1Y-14.36%
OCF growth 3Y3.11%
OCF growth 5Y9.18%