Financial Analysis of Occidental Petroleum (OXY)

According to recent news, by May, 2022, an SEC filing revealed the OXY purchases were made at prices between $51.03 and $58.58. The weighted average of the buys is around $56.60.

That gives Berkshire a total of 118.3 million shares that are worth almost $6.9 billion.

As a result, OXY moves up to 9th place on Berkshire’s list of biggest reported holdings, and it gives Berkshire nearly 12% of Occidental’s outstanding shares.

Below are the financial indicators of OXY:

• Gross margin: 27.4%. Considering oil industry is such a capital/investment concentrated industry, this margin is very good.
• Net income continues to improve over the time, due to the war between Ukraine and Russia. The recovery of the Covid situation also increases the global demand for oil. On the demand side, the economy is recovering and the global production of oil is still very limited.
• PE ratio average used to be around 24, but in first quarter, 2022, it quickly improved from 36 to 8-9. As we know, the lower PE ratio, the better.  
• PE ratio chart of the past year (by May 15, 2022) is as below:

Overall speaking, I would say the OXY is a strong buy with good financial ratios.