Occidental Petroleum Corp

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OXY : NYSE : Basic Materials
$75.38 | %
Today's Range: 75.13 - 76.01
Avg. Daily Volume: 3,858,000
07/22/16 - 4:03 PM ET

Financial Analysis


OCCIDENTAL PETROLEUM CORP's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. OCCIDENTAL PETROLEUM CORP has weak liquidity. Currently, the Quick Ratio is 0.87 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 30.36% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)2123.03089.0
EBITDA ($mil)486.0782.0
EBIT ($mil)-616.0-247.0
Net Income ($mil)78.0-218.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)3176.05418.0
Total Assets ($mil)42018.053389.0
Total Debt ($mil)7608.06839.0
Equity ($mil)23789.034164.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin36.1335.64
EBITDA Margin22.8925.31
Operating Margin-29.02-8.0
Sales Turnover0.270.33
Return on Assets-17.92-1.85
Return on Equity-34.85-4.37
Debt Q1 FY16 Q1 FY15
Current Ratio1.211.51
Debt/Capital0.240.17
Interest Expense60.030.0
Interest Coverage-10.27-8.23


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)763.84768.12
Div / share0.750.72
EPS-0.47-0.28
Book value / share31.1444.48
Institutional Own % n/a n/a
Avg Daily Volume3955828.05120804.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 2.48 indicates a discount versus the S&P 500 average of 2.80 and a significant discount versus the industry average of 11.34. 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 NM Peers 71.04   OXY 16.93 Peers 289.35

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

OXY's P/E is negative making this valuation measure meaningless.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
OXY 60.56 Peers 35.15   OXY NA Peers 2.07

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

OXY's ratio is negative making this valuation measure meaningless.

 

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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
OXY 2.48 Peers 11.34   OXY -448.48 Peers -192.85

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 5.12 Peers 2.47   OXY -33.96 Peers -25.98

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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