Is OXY a high-quality business?

AlphaMadera's AlphaQuality grade scores Occidental Petroleum Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how OXY compares to a Buffett-style quality bar.

What is Occidental Petroleum Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to OXY based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes OXY a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

OXY - Occidental Petroleum Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $60.38 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C 56.5 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D 38.3

5yr Avg ROIC 8.3% 51/100
Operating Margin Trend -1.61 pp/yr 8/100

Capital Efficiency

Weight: 10%

B- 65.8

5yr Avg ROE 14.2% 77/100
5yr Share-Count CAGR 1.1% 44/100

Growth Quality

Weight: 5%

F 21.0

5yr Revenue CAGR -4.5% 11/100
5yr EPS CAGR 0.5% 23/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 25%

A 90.2

5yr FCF Margin 24.0% 94/100
5yr FCF/NI Conversion 1.74x 86/100

Balance Sheet

Weight: 25%

C+ 57.2

Net Debt / EBITDA 1.93x 71/100
Interest Coverage (EBIT/Int) 4.14x 56/100
Altman Z-Score 1.74 34/100

Stability

Weight: 20%

D- 31.0

EPS Volatility (σ/μ) 0.94 2/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 3/5 40/100

6 of 6 gurus held; 3 trimmed.

Holders: 6
Avg Δ position: -17.3%
New buys: 0
Full exits: 0

Wood decreased -56%
Cooperman decreased -29%
Greenblatt decreased -19%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.