OXYOXY
US • —
$48.57
P/E
10.32
PEG
0.22
FCF Yield
—
Rev Growth YoY
-8.0% YoY
Gross Margin
71.9%
Health Score
6/10
D/E Ratio
0.62
Confidence
LOW
Business Snapshot
Occidental Petroleum (OXY) is an international oil and gas exploration and production company, also engaged in chemical manufacturing through its OxyChem subsidiary. The company operates across three main segments: Oil and Gas, Chemical, and Midstream & Marketing, with upstream operations concentrated in the Permian Basin and Gulf of Mexico. Occidental is a large-cap player in the energy sector, having been one of the largest producers in the Permian Basin following its $55 billion acquisition of Anadarko Petroleum in 2019. The company is defined by its significant debt load from that acquisition and its strategic position in carbon capture and direct air capture technology. Its net margin of 23.6% indicates strong profitability typical of a major integrated energy firm in a favourable pricing environment.
Financial Health
Gross margin stands at a robust 71.9%, reflecting the high operating leverage of upstream oil and gas production, though prior-year data for comparison is not available. TTM net margin of 23.6% indicates the company is converting a healthy portion of revenue into bottom-line profit at current commodity prices...
Risk Assessment
- REVENUE DECELERATION — Revenue declined 8.0% YoY, indicating a contraction in top-line sales that conflicts with the strong earnings growth figure.
- DEBT / LIQUIDITY — Current ratio of 0.94x is below 1.0x, meaning current liabilities exceed current assets by a small margin, a yellow flag for short-term liquidity.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — Both FMP DCF and Python DCF estimates are unavailable due to negative or missing free cash flow, leaving a gap in fair value assessment.
- EARNINGS QUALITY — While earnings beats are consistent at 4/4 quarters, the 47.5% earnings growth figure diverges sharply from -8.0% revenue growth, suggesting the quality of earnings may be driven by one-time or non-operational factors....
Gross margin stands at a robust 71.9%, reflecting the high operating leverage of upstream oil and gas production, though prior-year data for comparison is not available. TTM net margin of 23.6% indicates the company is converting a healthy portion of revenue into bottom-line profit at current commodity prices. The balance sheet appears manageable with a debt-to-equity ratio of 0.62x, which is reasonable for a capital-intensive energy company, but the current ratio of 0.94x signals that current liabilities slightly exceed current assets, a potential liquidity concern. Free cash flow data is unavailable, making it impossible to assess the company's cash generation or dividend coverage capacity directly. Overall financial health is solid but not fortress-like, adequate to support operations and debt service, though the lack of free cash flow transparency warrants caution.
- REVENUE DECELERATION — Revenue declined 8.0% YoY, indicating a contraction in top-line sales that conflicts with the strong earnings growth figure. - DEBT / LIQUIDITY — Current ratio of 0.94x is below 1.0x, meaning current liabilities exceed current assets by a small margin, a yellow flag for short-term liquidity. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — Both FMP DCF and Python DCF estimates are unavailable due to negative or missing free cash flow, leaving a gap in fair value assessment. - EARNINGS QUALITY — While earnings beats are consistent at 4/4 quarters, the 47.5% earnings growth figure diverges sharply from -8.0% revenue growth, suggesting the quality of earnings may be driven by one-time or non-operational factors.
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