Fact based stock research
Occidental Petroleum (NYSE:OXY)

US6745991058

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Occidental Petroleum stock research in summary

oxy.com

ANALYSIS: With an Obermatt Combined Rank of 18 (worse than 82% compared with investment alternatives), Occidental Petroleum (Oil & Gas Integrated, USA) shares have lower financial characteristics compared with similar stocks. Shares of Occidental Petroleum are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives), show below-average growth (Growth Rank of 38), and are riskily financed (Safety Rank of 48), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 18, is a sell recommendation based on Occidental Petroleum's financial characteristics. As the company Occidental Petroleum's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 26), low growth (Obermatt Growth Rank of 38), and risky financing practices (Obermatt Safety Rank of 48), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	26
Growth Rank	38
Safety Rank	48
Combined Rank	18

Country	USA
Industry	Oil & Gas Integrated
Index	Human Rights, Oil & Gas, S&P 500
Size class	XX-Large

23-Jan-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

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Research History: Occidental Petroleum

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	2	27	8	26
GROWTH
GROWTH	75	15	51	38
SAFETY
SAFETY	8	37	30	48
SENTIMENT
SENTIMENT	n/a	25	14	^new
360° VIEW
360° VIEW	n/a	7	8	^new

Most recent update of the stock research: 23-Jan-2025. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Occidental Petroleum is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	2	27	8	26
GROWTH
GROWTH	75	15	51	38
SAFETY
SAFETY	8	37	30	48
COMBINED
COMBINED	8	7	6	18

Last update of combined financial performance: 23-Jan-2025. Stock analysis on combined financial performance: The higher the rank of Occidental Petroleum the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 26 (worse than 74% compared with alternatives), Occidental Petroleum shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Occidental Petroleum. Price-to-Sales (P/S) is 50, which means that the stock price compared with what market professionals expect for future sales is lower than for 50% of comparable companies, indicating a good value concerning Occidental Petroleum's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 59% of alternatives (41% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 26 are lower than average (dividends are expected to be lower than 74% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 32, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 26, is a hold recommendation based on Occidental Petroleum's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Occidental Petroleum may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	33	78	47	50
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	5	9	9	32
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	40	15	59
DIVIDEND YIELD
DIVIDEND YIELD	14	31	31	26
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	2	27	8	26

Last update of Value Rank: 23-Jan-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Occidental Petroleum; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 38 (better than 38% compared with alternatives), Occidental Petroleum shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Occidental Petroleum. Sales Growth has a rank of 51 which means that currently, professionals expect the company to grow more than 51% of its competitors. Capital Growth is also above 47% of competitors with a rank of 74. But Profit Growth only has a rank of 47, which means that currently professionals expect the company to grow its profits less than 53% of its competitors. And Stock Returns have also been below average with a rank of only 8. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 38, is a hold recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	17	10	46	51
PROFIT GROWTH
PROFIT GROWTH	57	43	34	47
CAPITAL GROWTH
CAPITAL GROWTH	n/a	74	77	74
STOCK RETURNS
STOCK RETURNS	92	21	47	8
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	75	15	51	38

Last update of Growth Rank: 23-Jan-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Occidental Petroleum.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 48 (better than 48% compared with alternatives), the company Occidental Petroleum has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Occidental Petroleum is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Occidental Petroleum. Liquidity is at 51, meaning the company generates more profit to service its debt than 51% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 44, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 56% of its competitors. Leverage is also high at a rank of 41, which means that the company has an above-average debt-to-equity ratio. It has more debt than 59% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 48 (worse than 52% compared with alternatives), Occidental Petroleum has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	17	24	41
REFINANCING
REFINANCING	52	81	52	44
LIQUIDITY
LIQUIDITY	13	33	31	51
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	8	37	30	48

Last update of Safety Rank: 23-Jan-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Occidental Petroleum and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	26	13	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	17	10	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	75	42	^new
MARKET PULSE
MARKET PULSE	n/a	16	31	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	25	14	^new

Last update of Sentiment Rank: 23-Jan-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Occidental Petroleum.
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