Occidental’s Cash Generation Offsets Slow Five-Year Growth

Occidental Petroleum shares lost 11.1% over six months, while the S&P 500 gained 16.6%, according to StockStory’s analysis. As of 17:14 UTC on Oct. 1, shares traded at $57.06, up 3.14% since the previous close.

StockStory highlighted the company’s five-year annualized revenue growth of 6.5%, describing it as sluggish compared with the energy upstream and integrated energy sector. The publisher also noted that Berkshire Hathaway is a major shareholder.

Occidental reported $24.47 billion in revenue over the last year. StockStory said the company’s scale may help reduce operational risk by spreading revenue across its business.

The publisher also pointed to Occidental’s five-year average free-cash-flow margin of 23.6%, which it said ranked among the best in its sector. StockStory’s analysis described the margin as supporting reinvestment and returns to investors.

At the article’s cited share price of $55.30, StockStory said Occidental traded at 11.2 times forward earnings. The publisher’s overall view was positive, despite its concern about the company’s longer-term revenue growth.