Is Occidental Petroleum Corp (OXY) Set to Underperform? Analyzing the Factors Limiting Growth

Core Insights - Occidental Petroleum Corp has a GF Score of 68 out of 100, indicating poor future outperformance potential [2] - The company has experienced a daily gain of 0.68% but a three-month decline of 11.28%, suggesting volatility in its stock performance [1] Company Overview - Occidental Petroleum Corp is an independent exploration and production company with operations in the United States, Latin America, and the Middle East [3] - As of the end of 2023, the company reported net proved reserves of nearly 4 billion barrels of oil equivalent and an average net production of 1,234 thousand barrels of oil equivalent per day, split evenly between oil and natural gas [3] - The company's market capitalization is $50.54 billion, with sales of $27.12 billion and an operating margin of 20.61% [3] Financial Performance - For the year ending December 31, 2023, Occidental's revenue was $28.3 billion, with a gross profit of $10.1 billion, resulting in a gross profit margin of 35.8% [4] - The company reported a pretax income of $6.4 billion from oil and gas operations, accounting for 22.8% of total income [4] - The financial strength indicators reveal a concerning Alman 7-score of 1.74, below the distress zone, and a low cash-to-debt ratio of 0.09, indicating potential financial distress [5] Growth Prospects - Occidental Petroleum Corp shows a lack of significant growth, reflected in its low growth rank and a predictability rank of just one star out of five, which adds to investor uncertainty regarding revenue and earnings consistency [6]