Occidental Petroleum Corp. (NYSE:OXY)

The analysis of the provided financial data reveals several trends and insights regarding the company's share price, sales per share, and price-to-sales (P/S) ratio over the examined periods.

Share Price Trends

The share price exhibited considerable volatility over the period. It increased significantly from around $46.32 in early 2006 to a peak exceeding $104 in early 2012. Thereafter, a general decline is observable, with fluctuations, particularly apparent during the years 2013 to 2020. The share price dropped sharply to approximately $26.61 by early 2021, followed by a recovery to nearly $59 by early 2023, before easing again to the range of $48.84 by early 2025. The data suggests periods of both strong growth and substantial correction phases, indicating sensitivity to market or operational factors.

Sales per Share Patterns

Sales per share presented a less volatile but still fluctuating pattern. Starting at $18.90 in 2006, the figure generally increased, peaking around nearly $30 in 2009 and maintaining levels close to $30 through 2014. A decline followed with sales per share falling below $20 around 2016-2017. Subsequently, there was a notable uptrend reaching around $40.70 in 2023. The last two years showed a decline to about $28.48. The sales per share metric demonstrates resilience with periods of recovery following declines, reflective of the company's ability to rebound in revenue generation per share after downturns.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio reveals interesting dynamics. Initially, the ratio hovered around 2.0 to 4.3, reaching a high of 4.94 in 2017, indicative of relatively high market valuations compared to sales per share during that time. From 2018 onwards, the P/S ratio dropped dramatically to lows near 1.39 in 2021, suggesting a decreased market valuation relative to sales. The ratio modestly increased thereafter, reaching approximately 1.78 by 2024 and remaining fairly stable. This demarcates a shift in market perception, potentially due to changing investor sentiment or operational challenges, where the market is valuing the company at a lower multiple of its sales than in earlier years.

Comparative Observations

Comparing share price and sales per share trends, it is evident that the share price has generally been more volatile, subject to larger percentage changes, while sales per share followed more stable but cyclical patterns. The divergence between share price and sales per share, especially noticeable post-2015, underscores the influence of external factors such as market conditions, investor sentiment, or company-specific risks impacting valuation beyond basic sales performance. The declining P/S ratio post-2017 further confirms a period where the company’s stock valuation contracted relative to its sales, despite some recovery in revenue generation.