Occidental Petroleum Price To Earning vs. Operating Margin
| OXYP34 Stock | BRL 48.08 0.40 0.83% |
For Occidental Petroleum profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Occidental Petroleum to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Occidental Petroleum utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Occidental Petroleum's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Occidental Petroleum over time as well as its relative position and ranking within its peers.
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Occidental Petroleum Operating Margin vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Occidental Petroleum's current stock value. Our valuation model uses many indicators to compare Occidental Petroleum value to that of its competitors to determine the firm's financial worth. Occidental Petroleum is regarded fourth in price to earning category among its peers. It is rated below average in operating margin category among its peers . The ratio of Price To Earning to Operating Margin for Occidental Petroleum is about 306.13 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Occidental Petroleum by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Occidental Petroleum's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Occidental Operating Margin vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 113.82 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.37 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Occidental Operating Margin Comparison
Occidental Petroleum is rated below average in operating margin category among its peers.
Occidental Petroleum Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Occidental Petroleum, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Occidental Petroleum will eventually generate negative long term returns. The profitability progress is the general direction of Occidental Petroleum's change in net profit over the period of time. It can combine multiple indicators of Occidental Petroleum, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas. OCCIDENT PTRDRN operates under Oil Gas EP classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 11800 people.
Occidental Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Occidental Petroleum. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Occidental Petroleum position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Occidental Petroleum's important profitability drivers and their relationship over time.
Use Occidental Petroleum in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Occidental Petroleum position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Occidental Petroleum will appreciate offsetting losses from the drop in the long position's value.Occidental Petroleum Pair Trading
Occidental Petroleum Pair Trading Analysis
The ability to find closely correlated positions to Occidental Petroleum could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Occidental Petroleum when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Occidental Petroleum - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Occidental Petroleum to buy it.
The correlation of Occidental Petroleum is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Occidental Petroleum moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Occidental Petroleum moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Occidental Petroleum can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Occidental Petroleum position
In addition to having Occidental Petroleum in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Occidental Stock
When determining whether Occidental Petroleum offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Occidental Petroleum's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Occidental Petroleum Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Occidental Petroleum Stock:Check out Your Equity Center. For information on how to trade Occidental Stock refer to our How to Trade Occidental Stock guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
To fully project Occidental Petroleum's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Occidental Petroleum at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Occidental Petroleum's income statement, its balance sheet, and the statement of cash flows.