OCCIDENTAL PETROLEUM CORP (OXY)
US6745991058 - Common Stock
Taking everything into account, OXY scores 4 out of 10 in our fundamental rating. OXY was compared to 217 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of OXY get a neutral evaluation. Nothing too spectacular is happening here. OXY has a valuation in line with the averages, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: OXY reported negative net income in multiple years.
Each year in the past 5 years OXY had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 8.23%, OXY perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
OXY has a Return On Equity (20.13%) which is in line with its industry peers.
OXY's Return On Invested Capital of 12.56% is in line compared to the rest of the industry. OXY outperforms 53.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 20.13% | ||
| ROIC | 12.56% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
OXY has a Profit Margin (18.51%) which is comparable to the rest of the industry.
OXY's Profit Margin has improved in the last couple of years.
OXY has a Operating Margin (29.83%) which is comparable to the rest of the industry.
OXY's Operating Margin has improved in the last couple of years.
OXY's Gross Margin of 63.73% is fine compared to the rest of the industry. OXY outperforms 63.13% of its industry peers.
OXY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.83% | ||
| PM | 18.51% | ||
| GM | 63.73% |
OM growth 3Y35.36%
OM growth 5Y30.83%
PM growth 3YN/A
PM growth 5Y26.94%
GM growth 3Y2.96%
GM growth 5Y3.99%
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.
Compared to 1 year ago, OXY has less shares outstanding
The number of shares outstanding for OXY has been increased compared to 5 years ago.
The debt/assets ratio for OXY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.03 indicates that OXY is not a great score, but indicates only limited risk for bankruptcy at the moment.
OXY has a Altman-Z score of 2.03. This is comparable to the rest of the industry: OXY outperforms 54.38% of its industry peers.
OXY has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as OXY would need 2.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, OXY is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
OXY has a Debt/Equity ratio of 0.68. This is a neutral value indicating OXY is somewhat dependend on debt financing.
The Debt to Equity ratio of OXY (0.68) is worse than 60.83% of its industry peers.
Although OXY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.45
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.00 indicates that OXY may have some problems paying its short term obligations.
OXY has a Current ratio (1.00) which is in line with its industry peers.
OXY has a Quick Ratio of 1.00. This is a bad value and indicates that OXY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.73, OXY is not doing good in the industry: 70.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
OXY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.72%.
Measured over the past years, OXY shows a very strong growth in Earnings Per Share. The EPS has been growing by 59.63% on average per year.
Looking at the last year, OXY shows a decrease in Revenue. The Revenue has decreased by -6.49% in the last year.
The Revenue has been growing by 23.79% on average over the past years. This is a very strong growth!
EPS 1Y-23.72%
EPS 3Y79.25%
EPS 5Y59.63%
EPS growth Q2Q-78.48%
Revenue growth 1Y-6.49%
Revenue growth 3Y20.3%
Revenue growth 5Y23.79%
Revenue growth Q2Q-37.17%
3.2 Future
The Earnings Per Share is expected to decrease by -15.10% on average over the next years. This is quite bad
The Revenue is expected to decrease by -8.47% on average over the next years.
EPS Next Y-60.24%
EPS Next 2Y-25.84%
EPS Next 3Y-14.76%
EPS Next 5Y-15.1%
Revenue Next Year-24.7%
Revenue Next 2Y-11.16%
Revenue Next 3Y-8.47%
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.
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
The Price/Earnings ratio is 11.29, which indicates a very decent valuation of OXY.
OXY's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.55, OXY is valued rather cheaply.
A Price/Forward Earnings ratio of 12.80 indicates a correct valuation of OXY.
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 18.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 12.8 |
4.2 Price Multiples
OXY's Enterprise Value to EBITDA is on the same level as the industry average.
OXY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OXY is cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
A cheap valuation may be justified as OXY's earnings are expected to decrease with -14.76% in the coming years.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-25.84%
EPS Next 3Y-14.76%
5. Dividend
5.1 Amount
OXY has a Yearly Dividend Yield of 1.15%.
Compared to an average industry Dividend Yield of 6.69, OXY is paying slightly less dividend.
With a Dividend Yield of 1.15, OXY pays less dividend than the S&P500 average, which is at 2.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
5.2 History
The dividend of OXY decreases each year by -15.90%.
OXY has been paying a dividend for at least 10 years, so it has a reliable track record.
OXY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-15.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
OXY pays out 22.74% of its income as dividend. This is a sustainable payout ratio.
OXY's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP22.74%
EPS Next 2Y-25.84%
EPS Next 3Y-14.76%
OCCIDENTAL PETROLEUM CORP
NYSE:OXY (9/27/2023, 1:54:08 PM)
65.7
+2.55 (+4.04%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)08-02 2023-08-02/amc
Earnings (Next)11-06 2023-11-06/amc
Inst Owners78.53%
Inst Owner Change-0.83%
Ins Owners0.24%
Ins Owner Change1.38%
Market Cap58.12B
Analysts71.72
Price Target71.28 (8.49%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
Dividend Growth(5Y)-15.9%
DP22.74%
Div Incr Years2
Div Non Decr Years2
Ex-Date09-07 2023-09-07 (0.18)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.12%
Min EPS beat(2)-13.14%
Max EPS beat(2)-7.11%
EPS beat(4)0
Avg EPS beat(4)-8.44%
Min EPS beat(4)-13.14%
Max EPS beat(4)-1.95%
Revenue beat(2)2
Avg Revenue beat(2)98447.8%
Min Revenue beat(2)97321.4%
Max Revenue beat(2)99574.2%
Revenue beat(4)4
Avg Revenue beat(4)97310.7%
Min Revenue beat(4)94228.8%
Max Revenue beat(4)99574.2%
PT rev (1m)2.19%
PT rev (3m)-1.58%
EPS NQ rev (1m)1.02%
EPS NQ rev (3m)-41.16%
EPS NY rev (1m)-3.41%
EPS NY rev (3m)-29.62%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.91%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-7.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 12.8 | ||
| P/S | 1.84 | ||
| P/FCF | 6.91 | ||
| P/OCF | 4.1 | ||
| P/B | 2 | ||
| P/tB | 2 | ||
| EV/EBITDA | 4.58 |
EPS(TTM)5.82
EY8.86%
EPS(NY)5.13
Fwd EY7.81%
FCF(TTM)9.5
FCFY14.47%
OCF(TTM)16.03
OCFY24.4%
SpS35.79
BVpS32.91
TBVpS32.91
PEG (NY)N/A
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 20.13% | ||
| ROCE | 14.82% | ||
| ROIC | 12.56% | ||
| ROICexc | 12.66% | ||
| ROICexgc | 12.66% | ||
| OM | 29.83% | ||
| PM | 18.51% | ||
| GM | 63.73% | ||
| FCFM | 26.56% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y83.54%
ROICexcg growth 5Y41.88%
ROICexc growth 3Y83.54%
ROICexc growth 5Y41.88%
OM growth 3Y35.36%
OM growth 5Y30.83%
PM growth 3YN/A
PM growth 5Y26.94%
GM growth 3Y2.96%
GM growth 5Y3.99%
F-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 82.66% | ||
| Cap/Sales | 18.24% | ||
| Profit Quality | 143.46% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 2.03 |
F-Score5
WACC8.72%
ROIC/WACC1.45
Cap/Depr(3y)43.4%
Cap/Depr(5y)72.31%
Cap/Sales(3y)12.45%
Cap/Sales(5y)19.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y-23.72%
EPS 3Y79.25%
EPS 5Y59.63%
EPS growth Q2Q-78.48%
EPS Next Y-60.24%
EPS Next 2Y-25.84%
EPS Next 3Y-14.76%
EPS Next 5Y-15.1%
Revenue growth 1Y-6.49%
Revenue growth 3Y20.3%
Revenue growth 5Y23.79%
Revenue growth Q2Q-37.17%
Revenue Next Year-24.7%
Revenue Next 2Y-11.16%
Revenue Next 3Y-8.47%
Revenue Next 5YN/A
EBIT growth 1Y-19.67%
EBIT growth 3Y62.84%
EBIT growth 5Y61.96%
EBIT Next Year-7.67%
EBIT Next 3Y-1.13%
EBIT Next 5Y-1.56%
FCF growth 1Y93.6%
FCF growth 3Y129.4%
FCF growth 5Y57.71%
OCF growth 1Y118.86%
OCF growth 3Y31.6%
OCF growth 5Y28.16%