Occidental Petroleum Corp

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OXY : NYSE : Basic Materials
$58.51 -0.64 | -1.1%
Today's Range: 58.44 - 59.21
Avg. Daily Volume: 4373400.0
08/21/17 - 2:32 PM ET

Financial Analysis


OCCIDENTAL PETROLEUM CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. OCCIDENTAL PETROLEUM CORP has weak liquidity. Currently, the Quick Ratio is 0.96 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 8.93% 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.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)3060.02531.0
EBITDA ($mil)1137.0848.0
EBIT ($mil)148.0-222.0
Net Income ($mil)507.0-139.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)2218.03751.0
Total Assets ($mil)41982.042395.0
Total Debt ($mil)9824.08331.0
Equity ($mil)21037.023101.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin48.9247.93
EBITDA Margin37.1533.5
Operating Margin4.84-8.77
Sales Turnover0.270.25
Return on Assets0.26-18.51
Return on Equity0.56-37.25
Debt Q2 FY17 Q2 FY16
Current Ratio1.261.7
Debt/Capital0.320.27
Interest Expense86.088.0
Interest Coverage1.72-2.52


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)764.57763.93
Div / share0.760.75
EPS0.66-0.18
Book value / share27.5130.24
Institutional Own % n/a n/a
Avg Daily Volume4371327.05197610.0

Valuation


HOLD. OCCIDENTAL PETROLEUM CORP's P/E ratio indicates a significant premium compared to an average of 61.94 for the Oil, Gas & Consumable Fuels industry and a significant premium compared to the S&P 500 average of 24.23. To use another comparison, its price-to-book ratio of 2.14 indicates a discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 524.92. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, OCCIDENTAL PETROLEUM CORP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
OXY 392.80 Peers 61.94   OXY 11.07 Peers 10.76

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

OXY is trading at a significant premium to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
OXY 43.64 Peers 36.45   OXY NM Peers 0.57

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

OXY is trading at a significant premium to its peers.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
OXY 2.14 Peers 524.92   OXY 101.33 Peers 163.55

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
OXY 3.93 Peers 1.98   OXY 8.29 Peers 20.11

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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