Is Occidental more volatile than Denbury (NYSE:DEN)?


USD 89.53  0.23  0.26%   

Occidental Petroleum would recover faster from the current slide as its shares price went up 2.27% to Denbury's 6.19%As many of us are excited about energy space, we will review both, Denbury and Occidental Petroleum as a potential short-term opportunity. We are going to inspect some of the competitive aspects of both Denbury and Occidental.
Published six days ago
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By analyzing existing technical and fundamental indicators between Denbury and Occidental, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Occidental with a short position in Denbury. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Denbury is to check how much profit was generated for every dollar of assets it reports. Denbury utilizes its assets almost 12.16 percent, getting $0.12 for each dollar of assets held by the firm. A positive asset utilization denotes the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Denbury shows how effective it operates for each dollar spent on its assets.

How important is Denbury Resources's Liquidity

Denbury Resources financial leverage refers to using borrowed capital as a funding source to finance Denbury Resources ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Denbury Resources financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Denbury Resources's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Denbury Resources, but it might be worth checking our own buy vs. sell analysis

What is driving Denbury Resources Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Denbury revenue. Based on the latest financial disclosure, Denbury reported 1.6 B of revenue. This is 96.75% lower than that of the Energy sector and 51.35% lower than that of the Oil & Gas E&P industry. The revenue for all United States stocks is 83.04% higher than that of the firm. As for Occidental Petroleum we see revenue of 33.73 B, which is much higher than that of the Oil & Gas E&P

33.7 B
DEN1.6 Billion4.14
Sector3.29 Billion8.52
OXY33.73 Billion87.34

Will Denbury continue to go insane?

Latest downside variance is at 5.7. Denbury currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.08. However, we advise investors to further question Denbury expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Denbury's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Denbury's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Denbury Investment

Whereas some other firms in the oil & gas e&p industry are either recovering or due for a correction, Denbury may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 23rd of November 2022, our research shows that Denbury is a rather very steady investment opportunity with a close to average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our up-to-date 90 days buy-hold-sell recommendation on the company is Cautious Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Denbury Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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