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 213 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 correct valuation and a medium growth rate.
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.
OXY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years OXY had a positive operating cash flow.
1.2 Ratios
OXY's Return On Assets of 2.84% is in line compared to the rest of the industry. OXY outperforms 46.95% of its industry peers.
OXY has a Return On Equity (6.94%) which is in line with its industry peers.
OXY's Return On Invested Capital of 5.84% is in line compared to the rest of the industry. OXY outperforms 48.36% of its industry peers.
OXY had an Average Return On Invested Capital over the past 3 years of 9.21%. This is significantly below the industry average of 25.88%.
| 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 of 8.75%. This is comparable to the rest of the industry: OXY outperforms 53.05% of 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 54.46% 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 64.09%, OXY is doing good in the industry, outperforming 71.36% 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 | 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 below the Cost of Capital (WACC), so 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 1.40. This is a bad value and indicates that OXY is not financially healthy and even has some risk of bankruptcy.
OXY's Altman-Z score of 1.40 is in line compared to the rest of the industry. OXY outperforms 53.05% of its industry peers.
OXY has a debt to FCF ratio of 5.77. This is a neutral value as OXY would need 5.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.77, OXY is doing good in the industry, outperforming 63.85% 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.
OXY has a worse Debt to Equity ratio (0.69) than 62.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.77 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.61
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.01 indicates that OXY should not have too much problems paying its short term obligations.
OXY has a Current ratio (1.01) which is in line with 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.
With a Quick ratio value of 0.79, OXY is not doing good in the industry: 61.50% of the companies in the same industry are doing better.
| 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.
Looking at the last year, OXY shows a small growth in Revenue. The Revenue has grown by 2.02% 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)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 8.56% on average over the next years. This is quite good.
Based on estimates for the next years, OXY will show a small growth in Revenue. The Revenue will grow by 1.28% on average per year.
EPS Next Y-29.64%
EPS Next 2Y-4.17%
EPS Next 3Y2.7%
EPS Next 5Y8.56%
Revenue Next Year-3.07%
Revenue Next 2Y0.62%
Revenue Next 3Y1.28%
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 11.32, the valuation of OXY can be described as very reasonable.
Based on the Price/Earnings ratio, OXY is valued a bit cheaper than the industry average as 65.26% of the companies are valued more expensively.
OXY is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.19, which 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 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 13.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OXY is valued a bit cheaper than the industry average as 72.30% of the companies are valued more expensively.
77.93% 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 | 8.87 | ||
| EV/EBITDA | 4.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-4.17%
EPS Next 3Y2.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, OXY has a reasonable but not impressive dividend return.
OXY's Dividend Yield is comparable with the industry average which is at 7.05.
OXY's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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
61.99% of the earnings are spent on dividend by OXY. This is not a sustainable payout ratio.
DP61.99%
EPS Next 2Y-4.17%
EPS Next 3Y2.7%
41.9
-0.41 (-0.97%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners49.54%
Inst Owner Change4.13%
Ins Owners0.3%
Ins Owner Change10.19%
Market Cap39.38B
Analysts66.67
Price Target49.19 (17.4%)
Short Float %5.05%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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)-17.93%
PT rev (3m)-21.3%
EPS NQ rev (1m)-55.93%
EPS NQ rev (3m)-59.06%
EPS NY rev (1m)-11.06%
EPS NY rev (3m)-31.61%
Revenue NQ rev (1m)-9.02%
Revenue NQ rev (3m)-11.56%
Revenue NY rev (1m)-6.14%
Revenue NY rev (3m)-9.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 13.19 | ||
| P/S | 1.43 | ||
| P/FCF | 8.87 | ||
| P/OCF | 3.4 | ||
| P/B | 1.13 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 4.58 |
EPS(TTM)3.7
EY8.83%
EPS(NY)3.18
Fwd EY7.58%
FCF(TTM)4.72
FCFY11.27%
OCF(TTM)12.32
OCFY29.41%
SpS29.32
BVpS36.94
TBVpS36.94
PEG (NY)N/A
PEG (5Y)0.69
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 | 1.4 |
F-Score5
WACC9.51%
ROIC/WACC0.61
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-29.64%
EPS Next 2Y-4.17%
EPS Next 3Y2.7%
EPS Next 5Y8.56%
Revenue 1Y (TTM)2.02%
Revenue growth 3Y0.98%
Revenue growth 5Y5.03%
Sales Q2Q%13.86%
Revenue Next Year-3.07%
Revenue Next 2Y0.62%
Revenue Next 3Y1.28%
Revenue Next 5YN/A
EBIT growth 1Y10.01%
EBIT growth 3Y6.23%
EBIT growth 5Y13.4%
EBIT Next Year114.71%
EBIT Next 3Y31.33%
EBIT Next 5Y19.54%
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%