Evercore ISI Downgrades Occidental Petroleum Corp.(OXY:NYE) to an In-Line rating

STA Research
by: STA Research

Evercore ISI Downgrades Occidental Petroleum Corp. to an In-Line rating and has a target price of $74 on the company’s stock.

Based on the Occidental Petroleum Corporation stock forecasts from 16 analysts, the average analyst target price for Occidental Petroleum Corporation is USD 64.34 over the next 12 months. Occidental Petroleum Corporation’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Occidental Petroleum Corporation is Slightly Bearish, which is based on 4 positive signals and 7 negative signals. At the last closing, Occidental Petroleum Corporation’s stock price was USD 69.61Occidental Petroleum Corporation’s stock price has changed by -1.76% over the past week, +7.19% over the past month and +138.88% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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