NEW YORK (TheStreet) -- Shares of Occidental Petroleum Corp. (OXY) are down today 0.66% to $82.35 as oil futures fell further Wednesday and gasoline prices set a new five-year low after data showed an unexpected surge in U.S. crude supplies, the Wall Street Journal reports.
Brent oil for February delivery traded down 3% to $59.81 at 12:03 p.m. in New York.
U.S. oil supplies rose by 7.3 million barrels in the week ended December 19, the U.S. Energy Information Administration said Wednesday. Analysts surveyed by the Journal had expected a drop of 1.9 million barrels.
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Separately, TheStreet Ratings team rates OCCIDENTAL PETROLEUM CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCCIDENTAL PETROLEUM CORP (OXY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for OCCIDENTAL PETROLEUM CORP is rather high; currently it is at 54.80%. Regardless of OXY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OXY's net profit margin of 20.14% significantly outperformed against the industry.
- OXY's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.83 is somewhat weak and could be cause for future problems.
- OXY, with its decline in revenue, slightly underperformed the industry average of 6.7%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has decreased by 23.7% when compared to the same quarter one year ago, dropping from $1,583.00 million to $1,208.00 million.
- Net operating cash flow has decreased to $2,638.00 million or 25.91% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: OXY Ratings Report