NYSE:OXY

Stock Analysis Report

Occidental Petroleum

Executive Summary

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally.

Rewards

Trading at 52.1% below its fair value

Earnings are forecast to grow 36.02% per year

Pays a reliable dividend of 8.1%

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 8.1% is not well covered by earnings or forecast to be in the next 3 years

Large one-off items impacting financial results

Profit margins (5.7%) are lower than last year (23.6%)



Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Occidental Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OXY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

OXY

0.8%

US Oil and Gas

-0.3%

US Market


1 Year Return

-41.4%

OXY

-10.2%

US Oil and Gas

18.6%

US Market

Return vs Industry: OXY underperformed the US Oil and Gas industry which returned -10.2% over the past year.

Return vs Market: OXY underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

OXYIndustryMarket
7 Day1.1%0.8%-0.3%
30 Day-0.05%-2.1%2.2%
90 Day-14.2%0.4%5.6%
1 Year-38.6%-41.4%-7.0%-10.2%21.1%18.6%
3 Year-36.7%-44.7%-12.4%-20.4%45.6%36.2%
5 Year-34.6%-47.4%-7.7%-21.4%71.1%52.2%

Price Volatility Vs. Market

How volatile is Occidental Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Occidental Petroleum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OXY ($39.01) is trading below our estimate of fair value ($81.39)

Significantly Below Fair Value: OXY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OXY is poor value based on its PE Ratio (28.2x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: OXY is poor value based on its PE Ratio (28.2x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: OXY is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: OXY is overvalued based on its PB Ratio (1.3x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Occidental Petroleum forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

36.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OXY's forecast earnings growth (36% per year) is above the savings rate (1.7%).

Earnings vs Market: OXY's earnings (36% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OXY's revenue (12% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: OXY's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OXY's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Occidental Petroleum performed over the past 5 years?

45.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OXY has a large one-off loss of $1.0B impacting its September 30 2019 financial results.

Growing Profit Margin: OXY's current net profit margins (5.7%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: OXY's earnings have grown significantly by 45.9% per year over the past 5 years.

Accelerating Growth: OXY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OXY had negative earnings growth (-72.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (-15.6%).


Return on Equity

High ROE: OXY's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Occidental Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: OXY's short term assets ($20.9B) exceed its short term liabilities ($15.7B).

Long Term Liabilities: OXY's short term assets ($20.9B) do not cover its long term liabilities ($68.7B).


Debt to Equity History and Analysis

Debt Level: OXY's debt to equity ratio (120.6%) is considered high.

Reducing Debt: OXY's debt to equity ratio has increased from 19.1% to 120.6% over the past 5 years.

Debt Coverage: OXY's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: OXY's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: OXY has a high level of physical assets or inventory.

Debt Coverage by Assets: OXY's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Occidental Petroleum's current dividend yield, its reliability and sustainability?

8.10%

Current Dividend Yield


Dividend Yield vs Market

company8.1%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years8.1%

Current dividend yield vs market & industry

Notable Dividend: OXY's dividend (8.1%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: OXY's dividend (8.1%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: OXY's dividends per share have been stable in the past 10 years.

Growing Dividend: OXY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (225.9%), OXY's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OXY's dividends in 3 years are not forecast to be well covered by earnings (120.5% payout ratio).


Next Steps

Management

What is the CEO of Occidental Petroleum's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Vicki Hollub (59yo)

3.7yrs

Tenure

US$14,105,693

Compensation

Ms. Vicki A. Hollub has been the President and Chief Executive Officer at Occidental Petroleum Corporation since December 10, 2015 and April 29, 2016 respectively. Ms. Hollub has been a Director of Lockhee ...


CEO Compensation Analysis

Compensation vs Market: Vicki's total compensation ($USD14.11M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Vicki's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

58.5yo

Average Age

Experienced Management: OXY's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

66yo

Average Age

Experienced Board: OXY's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: OXY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$194,80027 Nov 19
Robert Shearer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$38.96
BuyUS$228,54020 Nov 19
William Klesse
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$38.09
BuyUS$471,72012 Nov 19
William Klesse
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max PriceUS$39.31
BuyUS$227,70030 Sep 19
William Klesse
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$45.54
BuyUS$213,10026 Aug 19
Oscar Brown
EntityIndividual
Shares5,000
Max PriceUS$42.62
BuyUS$222,85019 Aug 19
Kenneth Dillon
EntityIndividual
Shares5,000
Max PriceUS$44.57
BuyUS$108,17515 Aug 19
Cedric Burgher
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,500
Max PriceUS$43.27
BuyUS$43,15015 Aug 19
Margaret Foran
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$43.15
BuyUS$224,80013 Aug 19
William Klesse
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$44.96
BuyUS$753,25806 Aug 19
Robert Shearer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$50.22
BuyUS$243,85013 Jun 19
Avedick Poladian
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$48.77
BuyUS$203,40113 Jun 19
Cedric Burgher
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares4,100
Max PriceUS$49.61
BuyUS$724,20012 Jun 19
Oscar Brown
EntityIndividual
Shares15,000
Max PriceUS$48.51
BuyUS$242,65012 Jun 19
Glenn Vangolen
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Business Support
Shares5,000
Max PriceUS$48.53
BuyUS$437,79011 Jun 19
Eugene Batchelder
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares9,100
Max PriceUS$48.12
BuyUS$482,20011 Jun 19
William Klesse
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$48.22
BuyUS$1,803,69910 Jun 19
Vicki Hollub
EntityIndividual
Role
Chief Executive Officer
President
Shares37,460
Max PriceUS$48.15
BuyUS$480,90010 Jun 19
Marcia Backus
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares10,000
Max PriceUS$48.09

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Cedric Burgher (58yo)

    Senior VP & CFO

    • Tenure: 2.6yrs
    • Compensation: US$5.32m
  • Marcia Backus (65yo)

    Senior VP

    • Tenure: 6.2yrs
    • Compensation: US$5.18m
  • Melissa Schoeb (50yo)

    Vice President of Corporate Affairs

    • Tenure: 7.6yrs
  • Sandy Lowe (68yo)

    Executive VP & Group Chairman of Middle East

    • Tenure: 4.8yrs
    • Compensation: US$5.33m
  • Glenn Vangolen (60yo)

    Senior Vice President of Business Support

    • Tenure: 5.9yrs
    • Compensation: US$4.82m
  • Cynthia Walker (42yo)

    Senior Vice President of Marketing and Midstream Operations & Development

    • Tenure: 3.9yrs
    • Compensation: US$2.56m
  • Vicki Hollub (59yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$14.11m
  • Ioannis Charalambous

    Chief Information Officer& VP

    • Tenure: 5.4yrs
  • Christopher Champion (49yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 0.3yrs
  • Jeff Alvarez

    Vice President of Investor Relations

    • Tenure: 1.9yrs

Board Members

  • Carlos Gutierrez (65yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$375.00k
  • Gene Batchelder (72yo)

    Independent Chairman

    • Tenure: 4.6yrs
    • Compensation: US$490.01k
  • Bill Klesse (73yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$350.04k
  • Peggy Foran (65yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$385.00k
  • Dick Poladian (68yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$386.29k
  • Jack Moore (66yo)

    Independent Vice Chairman

    • Tenure: 0.9yrs
    • Compensation: US$350.04k
  • E. Abraham (66yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$358.79k
  • Bob Shearer (64yo)

    Director

    • Tenure: 0.4yrs
  • Elisse Walter (68yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$360.04k
  • Vicki Hollub (59yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$14.11m

Company Information

Occidental Petroleum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Occidental Petroleum Corporation
  • Ticker: OXY
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: US$33.964b
  • Shares outstanding: 893.32m
  • Website: https://www.oxy.com

Number of Employees


Location

  • Occidental Petroleum Corporation
  • 5 Greenway Plaza
  • Suite 110
  • Houston
  • Texas
  • 77046
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OXYNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
OPCDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
OPCXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
0KAKLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
OXY1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
OXYP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.20BRBRLMay 2019

Biography

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. The company op ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:39
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.