Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 24 Sept 2026
OXY· Energy
Occidental Petroleum
Occidental Petroleum's valuation looks fair, but weak ROIC and growth metrics raise concerns about long-term value.
Buffett fit
Weak fit
Owner
24
Durability
41
Management
81
Price
74
Score updated 22 Oct 2026 · analysis from 24 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Energy stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned 100% of Occidental Petroleum, the next decade would focus on managing commodity price volatility and optimizing .
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Over the next 10 years, Occidental's durability hinges on its ability to navigate the cyclical nature of the oil industry.
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Occidental has demonstrated decent with a yield of 2.33% and a dividend CAGR of 67.03%.
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Occidental's earnings yield of 8.49% and yield of 7.26% suggest a fair valuation at a of 11.8.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Net margin of 20.3% is top-quintile within the sector.
- 2Debt/equity ratio of 0.40 indicates conservative .
- 3/Net income ratio of 1.73 shows high earnings quality.
- 4Dividend CAGR of 67.03% suggests strong shareholder returns.
Concerns
5- 1 of 2.64% is well below the sector's top quintile of 11.8%.
- 2Revenue CAGR of -4.5% indicates declining growth.
- 3Interest coverage of 2.8 is below the 5x comfort level.
- 4 of 12.39% is below the sector's top-quintile of 28.6%.
Price history
$62.70+84.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Occidental Petroleum operates in oil and gas exploration, chemicals, and midstream marketing. The Oil and Gas segment is the largest, producing oil, NGLs, and natural gas. Chemicals manufacture basic and specialty chemicals, contributing to revenue diversity. Midstream activities include transportation and storage, adding stability. Unit economics show a 20.3% net margin, indicating efficiency in converting revenue to profit.
How this analysis has moved
The call has held across 5 reviews.
Sep 27, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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