Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Occidental Petroleum Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
An analysis of the cash flow trajectory from 2020 to 2024 reveals a significant recovery and subsequent expansion in liquidity available to shareholders. While operational cash generation experienced volatility, the cash flow available to equity holders demonstrated a consistent and accelerating growth pattern.
- Net Cash Provided by Operating Activities
- Operational cash flow exhibited a sharp increase between 2020 and 2022, rising from 3,842 million to a peak of 16,810 million. A subsequent correction occurred in 2023 and 2024, with values stabilizing between 11,739 million and 12,308 million, indicating a normalization of cash generation following a period of peak performance.
- Free Cash Flow to Equity (FCFE)
- FCFE underwent a complete reversal from a deficit of 673 million in 2020 to a substantial surplus of 9,819 million by 2024. This growth remained uninterrupted throughout the period, characterized by a steady climb in 2021 and 2022, followed by more aggressive expansions in 2023 and 2024.
- Comparative Cash Flow Divergence
- A notable divergence is observed starting in 2023; whereas net cash from operating activities trended downward, FCFE continued to rise significantly. This inverse relationship suggests a reduction in capital expenditures or a decrease in net debt repayments, allowing a larger percentage of operating cash to be allocated to equity holders despite the decline in total operational cash inflows.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to FCFE Ratio, Current
Occidental Petroleum Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 984,439,742 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 9,819) |
| FCFE per share | 9.97 |
| Current share price (P) | 42.54 |
| Valuation Ratio | |
| P/FCFE | 4.27 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 20.08 |
| ConocoPhillips | 28.08 |
| Exxon Mobil Corp. | 31.26 |
| P/FCFE, Sector | |
| Oil, Gas & Consumable Fuels | 25.85 |
| P/FCFE, Industry | |
| Energy | 25.27 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Occidental Petroleum Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 938,500,965 | 879,499,439 | 900,072,447 | 934,063,989 | 931,554,718 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 9,819) | 5,970) | 2,829) | 549) | (673) | |
| FCFE per share3 | 10.46 | 6.79 | 3.14 | 0.59 | -0.72 | |
| Share price1, 4 | 48.84 | 57.30 | 58.96 | 38.92 | 26.61 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 4.67 | 8.44 | 18.76 | 66.22 | — | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | 14.84 | 18.24 | 10.59 | 32.05 | — | |
| ConocoPhillips | 14.39 | 11.74 | 8.93 | 10.61 | — | |
| Exxon Mobil Corp. | 18.62 | 12.46 | 8.73 | 19.82 | — | |
| P/FCFE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 16.60 | 13.84 | 9.33 | 19.75 | — | |
| P/FCFE, Industry | ||||||
| Energy | 16.35 | 14.25 | 10.19 | 20.81 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,819,000,000 ÷ 938,500,965 = 10.46
4 Closing price as at the filing date of Occidental Petroleum Corp. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 48.84 ÷ 10.46 = 4.67
6 Click competitor name to see calculations.
The financial trajectory from 2020 to 2024 demonstrates a significant divergence between share price movement and Free Cash Flow to Equity (FCFE) growth, resulting in a substantial compression of the P/FCFE valuation multiple.
- Free Cash Flow to Equity (FCFE) Trend
- A consistent and accelerating upward trend in FCFE per share is observed. Following a negative value of -0.72 USD in 2020, the figure grew steadily to 0.59 USD in 2021, 3.14 USD in 2022, and 6.79 USD in 2023, eventually reaching 10.46 USD by 2024. This indicates a fundamental strengthening of cash generation available to shareholders.
- Share Price Dynamics
- The share price experienced a rapid ascent between 2020 and 2022, rising from 26.61 USD to a peak of 58.96 USD. However, a subsequent cooling period is evident from 2023 to 2024, with the price declining to 48.84 USD despite the continued growth in underlying cash flows.
- P/FCFE Ratio Analysis
- The P/FCFE ratio exhibited a steep and continuous decline throughout the period for which it was calculable. From a high of 66.22 in 2021, the ratio dropped to 18.76 in 2022, 8.44 in 2023, and 4.67 in 2024. This trend highlights a transition from a speculative or recovery-based valuation to one driven by strong operational cash performance.
The overall pattern suggests that while the share price peaked in 2022, the company's capacity to generate free cash flow to equity has continued to expand aggressively. Consequently, the P/FCFE ratio has compressed significantly, indicating that the asset is currently valued much more conservatively relative to its cash flow generation than in previous years.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?