Occidental Petroleum Stock Analysis, Valuation (NYSE:OXY)

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$85.42 $0.74 (0.86%) OXY stock closing price May 18, 2018 (Closing)
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Occidental Petroleum
Updated on : May 18, 2018
previous close
OXY 85.4 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-US Integrated
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-10%
Operating Profit
Operating Margin:
11.2%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$1.01B
Net Income:
$708M
Dividend Yield
OXY dividend yield:
3.59%
PROS      CONS
Operating Margins
ROIC
ROE
Long Term Growth
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
OXY PS :
4.7
Industry PS :
1.8
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4%
Return on Equity:
9.1%
Free Cash Flow Margin:
-0.6%
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Occidental Petroleum Stock Analysis

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Take a look at Amigobulls Occidental Petroleum stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for OXY stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Occidental Petroleum Corporation Stock Rating 3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for OXY stock analysis. Occidental Petroleum valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Occidental Petroleum stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy OXY stock?

  • The TTM operating margin was good at 11.2% for Occidental Petroleum.
  • Occidental Petroleum has an attractive ROIC (Return on Invested Capital) of 4%
  • The LTM ROE of 9.1% for Occidental Petroleum is attractive.

Should you sell OXY stock?

  • Revenue declined at a CAGR of -10% over the last 5 years.
  • Trading at a PE ratio of 51.5, OXY stock is overvalued in comparison to industry average multiple of 24.8.
  • The company is trading at a price to sales multiple of 4.7, which is higher in comparison to the Oil and Gas-US Integrated industry average of 1.8, making OXY stock expensive.
  • The company has a negative free cash flow margin of -0.6%.

Comments on this video and Occidental Petroleum stock

Amigobulls Occidental Petroleum stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Occidental Petroleum revenue growth and profit or net income are two main metrics which help in identifying whether OXY stock is overvalued or undervalued. Investors could make use of OXY technical analysis to check whether the fundamental story is reflected in the market sentiment.