OCCIDENTAL PETROLEUM CORP (OXY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OXY - US6745991058 - Common Stock
44.1 USD
+0.95 (+2.2%)
44.22 USD
+0.12 (+0.27%)
Taking everything into account, OXY scores 3 out of 10 in our fundamental rating. OXY was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of OXY while its profitability can be described as average. OXY has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- OXY had positive earnings in the past year.
- In the past year OXY had a positive cash flow from operations.
- Of the past 5 years OXY 4 years were profitable.
- OXY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- OXY has a Return On Assets (1.66%) which is in line with its industry peers.
- The Return On Equity of OXY (3.82%) is comparable to the rest of the industry.
- The Return On Invested Capital of OXY (4.68%) is comparable to the rest of the industry.
- OXY had an Average Return On Invested Capital over the past 3 years of 9.21%. This is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (4.68%) for OXY is well below the 3 year average (9.21%), which needs to be investigated, but indicates that OXY had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 3.82% | ||
| ROIC | 4.68% |
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
- Looking at the Profit Margin, with a value of 5.20%, OXY is in line with its industry, outperforming 46.38% of the companies in the same industry.
- In the last couple of years the Profit Margin of OXY has grown nicely.
- OXY has a Operating Margin of 18.05%. This is comparable to the rest of the industry: OXY outperforms 54.11% of its industry peers.
- OXY's Operating Margin has improved in the last couple of years.
- OXY's Gross Margin of 63.58% is fine compared to the rest of the industry. OXY outperforms 72.46% of its industry peers.
- OXY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.05% | ||
| PM (TTM) | 5.2% | ||
| GM | 63.58% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OXY is creating some value.
- Compared to 1 year ago, OXY has more shares outstanding
- OXY has more shares outstanding than it did 5 years ago.
- OXY has a worse debt/assets ratio than last year.
2.2 Solvency
- OXY has an Altman-Z score of 1.42. 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 of 1.42. This is comparable to the rest of the industry: OXY outperforms 52.17% of its industry peers.
- 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.
- OXY has a Debt to FCF ratio (5.91) which is in line with its industry peers.
- OXY has a Debt/Equity ratio of 0.57. This is a neutral value indicating OXY is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.57, OXY is in line with its industry, outperforming 43.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 5.91 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.59
WACC7.99%
2.3 Liquidity
- OXY has a Current Ratio of 0.94. 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 Current ratio of 0.94. This is in the lower half of the industry: OXY underperforms 60.39% of its industry peers.
- OXY has a Quick Ratio of 0.94. 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 0.71. This is in the lower half of the industry: OXY underperforms 65.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- OXY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.59%.
- The Earnings Per Share has been growing by 16.39% on average over the past years. This is quite good.
- Looking at the last year, OXY shows a decrease in Revenue. The Revenue has decreased by -1.98% in the last year.
- Measured over the past years, OXY shows a small growth in Revenue. The Revenue has been growing by 5.03% on average per year.
EPS 1Y (TTM)-20.59%
EPS 3Y11.15%
EPS 5Y16.39%
EPS Q2Q%-36%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y0.98%
Revenue growth 5Y5.03%
Sales Q2Q%-6.11%
3.2 Future
- Based on estimates for the next years, OXY will show a decrease in Earnings Per Share. The EPS will decrease by -9.76% on average per year.
- The Revenue is expected to grow by 2.80% on average over the next years.
EPS Next Y-34.38%
EPS Next 2Y-37.4%
EPS Next 3Y-14.93%
EPS Next 5Y-9.76%
Revenue Next Year-5.27%
Revenue Next 2Y-10.71%
Revenue Next 3Y-4.6%
Revenue Next 5Y2.8%
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 correctly with a Price/Earnings ratio of 16.33.
- OXY's Price/Earnings ratio is in line with the industry average.
- OXY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 32.52, OXY can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, OXY is valued a bit more expensive than the industry average as 60.39% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, OXY is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.33 | ||
| Fwd PE | 32.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, OXY is valued a bit cheaper than the industry average as 76.81% 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 73.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.44 | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
- OXY has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as OXY's earnings are expected to decrease with -14.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-37.4%
EPS Next 3Y-14.93%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.22%, OXY has a reasonable but not impressive dividend return.
- OXY's Dividend Yield is comparable with the industry average which is at 3.73.
- Compared to an average S&P500 Dividend Yield of 1.81, OXY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 112.93% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of OXY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP112.93%
EPS Next 2Y-37.4%
EPS Next 3Y-14.93%
OCCIDENTAL PETROLEUM CORP / OXY FAQ
Can you provide the ChartMill fundamental rating for OCCIDENTAL PETROLEUM CORP?
ChartMill assigns a fundamental rating of 3 / 10 to OXY.
What is the valuation status of OCCIDENTAL PETROLEUM CORP (OXY) stock?
ChartMill assigns a valuation rating of 3 / 10 to OCCIDENTAL PETROLEUM CORP (OXY). This can be considered as Overvalued.
Can you provide the profitability details for OCCIDENTAL PETROLEUM CORP?
OCCIDENTAL PETROLEUM CORP (OXY) has a profitability rating of 6 / 10.
What is the earnings growth outlook for OCCIDENTAL PETROLEUM CORP?
The Earnings per Share (EPS) of OCCIDENTAL PETROLEUM CORP (OXY) is expected to decline by -34.38% in the next year.
Is the dividend of OCCIDENTAL PETROLEUM CORP sustainable?
The dividend rating of OCCIDENTAL PETROLEUM CORP (OXY) is 3 / 10 and the dividend payout ratio is 112.93%.