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 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OXY was profitable.
In the past year OXY had a positive cash flow from operations.
OXY had positive earnings in 4 of the past 5 years.
In the past 5 years OXY always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OXY (2.84%) is comparable to the rest of the industry.
OXY has a Return On Equity (6.94%) which is comparable to the rest of the industry.
OXY's Return On Invested Capital of 5.84% is in line compared to the rest of the industry. OXY outperforms 50.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OXY is significantly below the industry average of 23.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 6.94% | ||
| ROIC | 5.84% |
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 (8.75%) which is in line with its industry peers.
In the last couple of years the Profit Margin of OXY has grown nicely.
Looking at the Operating Margin, with a value of 22.14%, OXY is in line with its industry, outperforming 54.03% of the companies in the same industry.
In the last couple of years the Operating Margin of OXY has grown nicely.
Looking at the Gross Margin, with a value of 64.09%, OXY is in the better half of the industry, outperforming 72.99% of the companies in the same industry.
OXY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.14% | ||
| PM (TTM) | 8.75% | ||
| GM | 64.09% |
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.
OXY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OXY has more shares outstanding
OXY has a worse debt/assets ratio than last year.
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 (1.46) which is in line with its industry peers.
The Debt to FCF ratio of OXY is 5.77, which is a neutral value as it means it would take OXY, 5.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.77, OXY is doing good in the industry, outperforming 61.61% of the companies in the same industry.
OXY has a Debt/Equity ratio of 0.69. This is a neutral value indicating OXY is somewhat dependend on debt financing.
The Debt to Equity ratio of OXY (0.69) is worse than 61.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.77 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.67
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.01 indicates that OXY should not have too much problems paying its short term obligations.
OXY's Current ratio of 1.01 is in line compared to the rest of the industry. OXY outperforms 43.13% of its industry peers.
OXY has a Quick Ratio of 1.01. 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 of 0.79. This is in the lower half of the industry: OXY underperforms 63.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
OXY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.55%, which is quite good.
OXY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.39% yearly.
The Revenue has been growing slightly by 2.02% in the past year.
OXY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.03% yearly.
EPS 1Y (TTM)14.55%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%38.1%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y0.98%
Revenue growth 5Y5.03%
Sales Q2Q%13.86%
3.2 Future
The Earnings Per Share is expected to grow by 9.51% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.68% on average over the next years.
EPS Next Y-28.28%
EPS Next 2Y-4.21%
EPS Next 3Y4.24%
EPS Next 5Y9.51%
Revenue Next Year-2.74%
Revenue Next 2Y0.83%
Revenue Next 3Y1.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.52, OXY is valued correctly.
OXY's Price/Earnings ratio is a bit cheaper when compared to the industry. OXY is cheaper than 61.61% of the companies in the same industry.
OXY is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.59 indicates a correct valuation of OXY.
OXY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, OXY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 14.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OXY indicates a somewhat cheap valuation: OXY is cheaper than 72.04% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, OXY is valued a bit cheaper than 74.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 4.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-4.21%
EPS Next 3Y4.24%
5. Dividend
5.1 Amount
OXY has a Yearly Dividend Yield of 2.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.48, OXY has a dividend in line with its industry peers.
OXY's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
5.2 History
The dividend of OXY decreases each year by -13.01%.
OXY has paid a dividend for at least 10 years, which is 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 61.99% of its income as dividend. This is not a sustainable payout ratio.
DP61.99%
EPS Next 2Y-4.21%
EPS Next 3Y4.24%
46.31
+0.46 (+1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners49.54%
Inst Owner Change-0.06%
Ins Owners0.3%
Ins Owner Change10.19%
Market Cap45.58B
Analysts67.33
Price Target49.54 (6.97%)
Short Float %4.68%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.09% |
Yearly Dividend1.59
Dividend Growth(5Y)-13.01%
DP61.99%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.91%
Min EPS beat(2)12.14%
Max EPS beat(2)13.68%
EPS beat(4)4
Avg EPS beat(4)22.92%
Min EPS beat(4)12.14%
Max EPS beat(4)34.19%
EPS beat(8)7
Avg EPS beat(8)16.38%
EPS beat(12)8
Avg EPS beat(12)8.99%
EPS beat(16)12
Avg EPS beat(16)62.38%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)-1.72%
Revenue beat(4)1
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-4.04%
Max Revenue beat(4)0.1%
Revenue beat(8)3
Avg Revenue beat(8)-1.17%
Revenue beat(12)4
Avg Revenue beat(12)-1.42%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)0.71%
PT rev (3m)-17.34%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)-55.81%
EPS NY rev (1m)1.92%
EPS NY rev (3m)-25.43%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)-7.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 14.59 | ||
| P/S | 1.65 | ||
| P/FCF | 10.27 | ||
| P/OCF | 3.94 | ||
| P/B | 1.31 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 4.97 |
EPS(TTM)3.7
EY7.99%
EPS(NY)3.17
Fwd EY6.86%
FCF(TTM)4.51
FCFY9.74%
OCF(TTM)11.77
OCFY25.41%
SpS28
BVpS35.27
TBVpS35.27
PEG (NY)N/A
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 6.94% | ||
| ROCE | 8.1% | ||
| ROIC | 5.84% | ||
| ROICexc | 6.05% | ||
| ROICexgc | 6.05% | ||
| OM | 22.14% | ||
| PM (TTM) | 8.75% | ||
| GM | 64.09% | ||
| FCFM | 16.1% |
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 | 0.69 | ||
| Debt/FCF | 5.77 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 94.05% | ||
| Cap/Sales | 25.92% | ||
| Interest Coverage | 4.74 | ||
| Cash Conversion | 84.56% | ||
| Profit Quality | 184.11% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.46 |
F-Score5
WACC8.67%
ROIC/WACC0.67
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)14.55%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%38.1%
EPS Next Y-28.28%
EPS Next 2Y-4.21%
EPS Next 3Y4.24%
EPS Next 5Y9.51%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y0.98%
Revenue growth 5Y5.03%
Sales Q2Q%13.86%
Revenue Next Year-2.74%
Revenue Next 2Y0.83%
Revenue Next 3Y1.68%
Revenue Next 5YN/A
EBIT growth 1Y10.01%
EBIT growth 3Y6.23%
EBIT growth 5Y13.4%
EBIT Next Year98.79%
EBIT Next 3Y30.91%
EBIT Next 5Y20.15%
FCF growth 1Y-60.88%
FCF growth 3Y-16.39%
FCF growth 5Y34.09%
OCF growth 1Y-29.57%
OCF growth 3Y3.11%
OCF growth 5Y9.18%