Occidental Petroleum Corporation (OXY) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Occidental Petroleum Corporation

Updated on October 31, 2026 · accounts published on August 5, 2026

A cash-generating energy business with strong current returns and an uneven cyclical record

Occidental Petroleum trades at a P/E of 9.8 over the last 12 months, 43 % below its sector median of 17.3, while EPS fell 34 % year on year.

• Is Occidental Petroleum expensive or cheap? Its P/E of 9.8 over the last 12 months is 43 % below the energy sector median of 17.3.
• How is the business doing? Operating margin of 23 % over the last 12 months, well above the 2014-2025 average of 14 %, even as EPS fell 34 %.
• How strong is the balance sheet? Net debt was $23.44 per share in fiscal 2025, 37 % of the current share price, at 1.9× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $1.45 when results come out on November 9, 2026; the 2026 EPS consensus rose 9 % in 30 days.
• Does it generate cash through the whole cycle and cover the dividend? Free cash flow was positive in 10 of the last 10 fiscal years (2016-2025) and covered the fiscal 2025 dividend 2.6 times.

Is Occidental Petroleum expensive or cheap?

Over the last 12 months Occidental Petroleum trades at a P/E of 9.8×, 43 % below the median of 17.3× across 140 energy companies, and at an EV/EBITDA of 5.3×, under its nine-year average of 8.0×. In a cyclical sector a low P/E can be a warning: 9.8× is less than 70 % of the five-year average of 16.0×, a pattern that often appears near a cycle peak. The free cash flow yield of 7.5 % over the last 12 months points to a modest discount, with the cycle as the main caveat. The stock has risen 60 % in 12 months and sits 3 % below its 52-week high of $66.24.

How is the business doing?

Over the last 12 months Occidental Petroleum earned an operating margin of 23 %, above both fiscal 2025 (17 %) and the 2014-2025 average of 14 %. ROIC reached 41 %, 33 points above the sector median of 7.4 %. The longer record is less flattering: ROIC cleared 10 % in only 1 of the last 10 fiscal years, with a low of −2.3 % in 2020, and the 2021-2025 average is 8.0 %. Revenue slipped 1.9 % year on year and EPS dropped 34 %, so today's returns look like a strong stretch of the cycle, and the decade shows how quickly they can fade.

How strong is the balance sheet?

Net debt of 1.9× EBITDA in fiscal 2025 passes the energy sector's healthy limit of 2.0×, but only just, and it equals 37 % of today's share price. Debt to equity of 0.35 and a current ratio of 1.41 over the last 12 months look comfortable. The composite scores are weaker: an Altman Z of 1.2 sits in the danger zone and the Piotroski score is 4 of 9. The dividend yields 1.6 % over the last 12 months, has risen for 4 consecutive fiscal years, and the fiscal 2025 payout was 67 % of earnings, a level that depends on profits holding up.

What to expect from the next earnings?

Occidental Petroleum reports on November 9, 2026, and analysts expect quarterly EPS of $1.45, well under the $2.40 reported on August 5, 2026, which beat the $1.83 estimate by 31 %. The company has beaten EPS estimates in 8 of the last 8 quarters. Expectations are moving up: over the last 30 days the 2026 EPS consensus rose 8.7 %, from $6.31 to $6.86 across 14 analysts, and the 2026 revenue consensus gained 4.9 %. Of the 52 analysts covering the stock, 27 rate it a buy, 23 a hold and 2 a sell.

Does it generate cash through the whole cycle and cover the dividend?

In energy, profits follow the oil price, so cash across the whole cycle and dividend sustainability say more than a single year's earnings. Occidental Petroleum posted positive free cash flow in all 10 fiscal years from 2016 to 2025, above the sector bar of 8 in 10, and free cash flow covered the fiscal 2025 dividend 2.6×, against a healthy level from 1.2×. Capex took 30 % of revenue in fiscal 2025, above the 10 % to 20 % range considered healthy for the sector. The free cash flow yield of 7.5 % over the last 12 months sits just under the 8 % threshold.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.