Occidental Petroleum Corporation
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OXY: Questionable Financials and Bearish Chart Pattern

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OXY has o.k. financials but not great:

PE: 12.65
Current ratio: 1.00x (below 1.20x is bad)
Quick ratio: 0.76x (below 1.00x is bad)
The EBITDA margin is really strong at 52% and consistently strong over the years. However, its free cash flow varies between significantly negative and positive.
$28 billion in debt
$2 billion in cash (low compared to the debt level)
1.82% dividend yield (not very attractive for a company that's been around since 1920 and in this industry)
$5 billion free cash flow
The company isn't accumulating cash - it's going to debt service and capital expenditures primarily.

The chart pattern doesn't look to have any upside. There's a down-trend since 2011. There's also a down trend since April 2024. An up-trend since a low of $9 has been broken. Price is currently $48. I'd personally be a buyer at $9.

This is not investment advice.

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