0.25 | 0.28%
OCCIDENTAL PETROLEUM CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. OCCIDENTAL PETROLEUM CORP has weak liquidity. Currently, the Quick Ratio is 0.92 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.51% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 5872.0 | 6268.0 |
| EBITDA ($mil) | 3553.0 | 3697.0 |
| EBIT ($mil) | 2294.0 | 2612.0 |
| Net Income ($mil) | 1355.0 | 1559.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 2140.0 | 3760.0 |
| Total Assets ($mil) | 65824.0 | 61622.0 |
| Total Debt ($mil) | 7624.0 | 5873.0 |
| Equity ($mil) | 40882.0 | 38747.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 60.51 | 58.98 |
| EBITDA Margin | 60.5 | 58.98 |
| Operating Margin | 39.07 | 41.67 |
| Sales Turnover | 0.36 | 0.4 |
| Return on Assets | 6.67 | 11.0 |
| Return on Equity | 10.84 | 17.53 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.3 | 1.48 |
| Debt/Capital | 0.16 | 0.13 |
| Interest Expense | 30.0 | 30.0 |
| Interest Coverage | 76.47 | 87.07 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 805.64 | 811.07 |
| Div / share | 0.64 | 0.54 |
| EPS | 1.69 | 1.92 |
| Book value / share | 50.74 | 47.77 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 5946743.0 | 4610998.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 24.66 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.79 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 3.72. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, OCCIDENTAL PETROLEUM CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OXY 16.61 | Peers 24.66 | OXY 6.50 | Peers 9.63 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. OXY is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. OXY is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| OXY 12.14 | Peers 15.69 | OXY 0.71 | Peers 1.66 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. OXY is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. OXY trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| OXY 1.79 | Peers 3.72 | OXY -34.38 | Peers -20.40 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. OXY is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, OXY is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| OXY 3.08 | Peers 2.36 | OXY -2.88 | Peers 9.80 | |||||||||||||||||||||
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Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. OXY is trading at a significant premium to its industry. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. OXY significantly trails its peers on the basis of sales growth |
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