OCCIDENTAL PETROLEUM CORP (OXY) Stock Fundamental Analysis
NYSE:OXY - New York Stock Exchange, Inc. - US6745991058 - Common Stock - Currency: USD
Overall OXY gets a fundamental rating of 4 out of 10. We evaluated OXY against 212 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
OXY had positive earnings in the past year.
OXY had a positive operating cash flow in the past year.
Of the past 5 years OXY 4 years were profitable.
In the past 5 years OXY always reported a positive cash flow from operatings.
1.2 Ratios
OXY's Return On Assets of 2.77% is in line compared to the rest of the industry. OXY outperforms 42.92% of its industry peers.
With a Return On Equity value of 6.92%, OXY perfoms like the industry average, outperforming 43.87% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.31%, OXY is in line with its industry, outperforming 42.92% of the companies in the same industry.
OXY had an Average Return On Invested Capital over the past 3 years of 9.27%. This is significantly below the industry average of 27.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.92% | ||
| ROIC | 5.31% |
ROA(3y)8.36%
ROA(5y)1.51%
ROE(3y)20.32%
ROE(5y)-3.19%
ROIC(3y)9.27%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.84%, OXY is in line with its industry, outperforming 51.89% of the companies in the same industry.
In the last couple of years the Profit Margin of OXY has grown nicely.
Looking at the Operating Margin, with a value of 20.93%, OXY is in line with its industry, outperforming 52.36% of the companies in the same industry.
OXY's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 63.32%, OXY is doing good in the industry, outperforming 68.87% 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 | 20.93% | ||
| PM (TTM) | 8.84% | ||
| GM | 63.32% |
OM growth 3Y4.21%
OM growth 5Y6.68%
PM growth 3Y14.93%
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OXY is destroying value.
Compared to 1 year ago, OXY has more shares outstanding
The number of shares outstanding for OXY has been increased compared to 5 years ago.
The debt/assets ratio for OXY is higher compared to a year ago.
2.2 Solvency
OXY has an Altman-Z score of 1.31. This is a bad value and indicates that OXY is not financially healthy and even has some risk of bankruptcy.
OXY has a Altman-Z score (1.31) which is comparable to the rest of the industry.
OXY has a debt to FCF ratio of 5.91. This is a neutral value as OXY would need 5.91 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.91, OXY is in the better half of the industry, outperforming 61.32% of the companies in the same industry.
OXY has a Debt/Equity ratio of 0.73. This is a neutral value indicating OXY is somewhat dependend on debt financing.
The Debt to Equity ratio of OXY (0.73) is worse than 65.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.56
WACC9.5%
2.3 Liquidity
A Current Ratio of 0.95 indicates that OXY may have some problems paying its short term obligations.
The Current ratio of OXY (0.95) is worse than 60.38% of its industry peers.
OXY has a Quick Ratio of 0.95. 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's Quick ratio of 0.73 is on the low side compared to the rest of the industry. OXY is outperformed by 64.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
OXY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.23%.
The Earnings Per Share has been growing by 16.39% on average over the past years. This is quite good.
The Revenue has decreased by -5.52% in the past year.
OXY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.81% yearly.
EPS 1Y (TTM)-6.23%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%8.11%
Revenue 1Y (TTM)-5.52%
Revenue growth 3Y0.76%
Revenue growth 5Y4.81%
Sales Q2Q%-9.19%
3.2 Future
The Earnings Per Share is expected to grow by 8.56% on average over the next years. This is quite good.
OXY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.73% yearly.
EPS Next Y-3.82%
EPS Next 2Y8.56%
EPS Next 3Y5.57%
EPS Next 5Y8.56%
Revenue Next Year3.27%
Revenue Next 2Y3.7%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
OXY is valuated reasonably with a Price/Earnings ratio of 11.48.
Based on the Price/Earnings ratio, OXY is valued a bit cheaper than the industry average as 61.32% of the companies are valued more expensively.
OXY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 11.93, the valuation of OXY can be described as reasonable.
OXY's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of OXY to the average of the S&P500 Index (21.08), we can say OXY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OXY is valued a bit cheaper than the industry average as 68.87% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OXY indicates a somewhat cheap valuation: OXY is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.44 | ||
| EV/EBITDA | 4.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.7
EPS Next 2Y8.56%
EPS Next 3Y5.57%
5. Dividend
5.1 Amount
OXY has a Yearly Dividend Yield of 2.42%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of OXY has falen by -23.59%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
OXY's Dividend Yield is comparable with the industry average which is at 7.82.
Compared to an average S&P500 Dividend Yield of 2.57, OXY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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 61.19% of its income as dividend. This is not a sustainable payout ratio.
DP61.19%
EPS Next 2Y8.56%
EPS Next 3Y5.57%
39.71
+1.26 (+3.28%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners49.54%
Inst Owner Change-0.01%
Ins Owners0.3%
Ins Owner Change9.42%
Market Cap37.32B
Analysts67.74
Price Target59.93 (50.92%)
Short Float %5.67%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend1.59
Dividend Growth(5Y)-13.01%
DP61.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.93%
Min EPS beat(2)13.68%
Max EPS beat(2)34.19%
EPS beat(4)4
Avg EPS beat(4)20.99%
Min EPS beat(4)4.41%
Max EPS beat(4)34.19%
EPS beat(8)6
Avg EPS beat(8)13.22%
EPS beat(12)8
Avg EPS beat(12)8.27%
EPS beat(16)12
Avg EPS beat(16)65.06%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-4.04%
Max Revenue beat(2)-2.05%
Revenue beat(4)1
Avg Revenue beat(4)-4.28%
Min Revenue beat(4)-11.11%
Max Revenue beat(4)0.1%
Revenue beat(8)3
Avg Revenue beat(8)-1.27%
Revenue beat(12)5
Avg Revenue beat(12)-0.95%
Revenue beat(16)9
Avg Revenue beat(16)0.51%
PT rev (1m)-3.01%
PT rev (3m)-4.16%
EPS NQ rev (1m)-1.47%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)-5.81%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)1.46%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 11.93 | ||
| P/S | 1.4 | ||
| P/FCF | 8.44 | ||
| P/OCF | 3.26 | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 4.73 |
EPS(TTM)3.46
EY8.71%
EPS(NY)3.33
Fwd EY8.38%
FCF(TTM)4.7
FCFY11.85%
OCF(TTM)12.17
OCFY30.65%
SpS28.44
BVpS36.35
TBVpS36.35
PEG (NY)N/A
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.92% | ||
| ROCE | 7.37% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.46% | ||
| ROICexgc | 5.46% | ||
| OM | 20.93% | ||
| PM (TTM) | 8.84% | ||
| GM | 63.32% | ||
| FCFM | 16.54% |
ROA(3y)8.36%
ROA(5y)1.51%
ROE(3y)20.32%
ROE(5y)-3.19%
ROIC(3y)9.27%
ROIC(5y)N/A
ROICexc(3y)9.45%
ROICexc(5y)N/A
ROICexgc(3y)9.52%
ROICexgc(5y)N/A
ROCE(3y)12.85%
ROCE(5y)N/A
ROICexcg growth 3Y0.11%
ROICexcg growth 5Y16.72%
ROICexc growth 3Y0.11%
ROICexc growth 5Y16.72%
OM growth 3Y4.21%
OM growth 5Y6.68%
PM growth 3Y14.93%
PM growth 5YN/A
GM growth 3Y-0.81%
GM growth 5Y0.37%
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 5.91 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 95.21% | ||
| Cap/Sales | 26.26% | ||
| Interest Coverage | 4.63 | ||
| Cash Conversion | 88.24% | ||
| Profit Quality | 187.09% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.31 |
F-Score5
WACC9.5%
ROIC/WACC0.56
Cap/Depr(3y)83.82%
Cap/Depr(5y)63.35%
Cap/Sales(3y)20.22%
Cap/Sales(5y)17.16%
Profit Quality(3y)148.51%
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 Y-3.82%
EPS Next 2Y8.56%
EPS Next 3Y5.57%
EPS Next 5Y8.56%
Revenue 1Y (TTM)-5.52%
Revenue growth 3Y0.76%
Revenue growth 5Y4.81%
Sales Q2Q%-9.19%
Revenue Next Year3.27%
Revenue Next 2Y3.7%
Revenue Next 3Y2.73%
Revenue Next 5YN/A
EBIT growth 1Y-13.19%
EBIT growth 3Y5%
EBIT growth 5Y11.81%
EBIT Next Year114.71%
EBIT Next 3Y31.33%
EBIT Next 5Y19.54%
FCF growth 1Y-26.78%
FCF growth 3Y-16.39%
FCF growth 5Y34.09%
OCF growth 1Y-7.06%
OCF growth 3Y3.11%
OCF growth 5Y9.18%