Stock Analysis: Best Dividend Stocks

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to CVX. CVX was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. CVX has only an average score on both its financial health and profitability. CVX has a valuation in line with the averages, but it does not seem to be growing. CVX also has an excellent dividend rating. These ratings would make CVX suitable for dividend investing!

1. Profitability

1.1 Basic Checks

CVX had positive earnings in the past year.

In the past year CVX had a positive cash flow from operations.

Of the past 5 years CVX 4 years were profitable.

Each year in the past 5 years CVX had a positive operating cash flow.

1.2 Ratios

The Return On Assets of CVX (6.87%) is better than 69.34% of its industry peers.

CVX's Return On Equity of 11.59% is fine compared to the rest of the industry. CVX outperforms 60.38% of its industry peers.

With a Return On Invested Capital value of 7.73%, CVX perfoms like the industry average, outperforming 59.91% of the companies in the same industry.

CVX had an Average Return On Invested Capital over the past 3 years of 9.34%. This is significantly below the industry average of 25.75%.

		Industry Rank	Sector Rank
ROA	6.87%
ROE	11.59%
ROIC	7.73%

ROA(3y)9.6%

ROA(5y)6.6%

ROE(3y)15.71%

ROE(5y)10.83%

ROIC(3y)9.34%

ROIC(5y)N/A

1.3 Margins

CVX has a Profit Margin (9.13%) which is in line with its industry peers.

In the last couple of years the Profit Margin of CVX has grown nicely.

Looking at the Operating Margin, with a value of 12.76%, CVX is in line with its industry, outperforming 41.98% of the companies in the same industry.

In the last couple of years the Operating Margin of CVX has grown nicely.

Looking at the Gross Margin, with a value of 38.37%, CVX is in line with its industry, outperforming 45.28% of the companies in the same industry.

In the last couple of years the Gross Margin of CVX has declined.

		Industry Rank	Sector Rank
OM	12.76%
PM (TTM)	9.13%
GM	38.37%

OM growth 3Y4.53%

OM growth 5Y56.2%

PM growth 3Y-3.12%

PM growth 5Y34.35%

GM growth 3Y-3.4%

GM growth 5Y-2.19%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVX is destroying value.

Compared to 1 year ago, CVX has less shares outstanding

Compared to 5 years ago, CVX has less shares outstanding

Compared to 1 year ago, CVX has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.60 indicates that CVX is not in any danger for bankruptcy at the moment.

The Altman-Z score of CVX (3.60) is better than 85.38% of its industry peers.

CVX has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.

Looking at the Debt to FCF ratio, with a value of 1.63, CVX belongs to the top of the industry, outperforming 85.85% of the companies in the same industry.

A Debt/Equity ratio of 0.13 indicates that CVX is not too dependend on debt financing.

CVX's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. CVX outperforms 75.47% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.13
Debt/FCF	1.63
Altman-Z	3.6

ROIC/WACC0.78

WACC9.87%

2.3 Liquidity

CVX has a Current Ratio of 1.06. This is a normal value and indicates that CVX is financially healthy and should not expect problems in meeting its short term obligations.

With a Current ratio value of 1.06, CVX perfoms like the industry average, outperforming 45.75% of the companies in the same industry.

A Quick Ratio of 0.83 indicates that CVX may have some problems paying its short term obligations.

The Quick ratio of CVX (0.83) is worse than 60.85% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.06
Quick Ratio	0.83

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CVX have decreased strongly by -23.46% in the last year.

The Earnings Per Share has been growing by 10.14% on average over the past years. This is quite good.

CVX shows a decrease in Revenue. In the last year, the revenue decreased by -1.78%.

CVX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.65% yearly.

EPS 1Y (TTM)-23.46%

EPS 3Y7.32%

EPS 5Y10.14%

EPS Q2Q%-40.29%

Revenue 1Y (TTM)-1.78%

Revenue growth 3Y7.52%

Revenue growth 5Y6.65%

Sales Q2Q%10.7%

3.2 Future

Based on estimates for the next years, CVX will show a small growth in Earnings Per Share. The EPS will grow by 7.06% on average per year.

CVX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.98% yearly.

EPS Next Y-8.75%

EPS Next 2Y5.34%

EPS Next 3Y9.58%

EPS Next 5Y7.06%

Revenue Next Year-4.89%

Revenue Next 2Y-1.91%

Revenue Next 3Y-0.31%

Revenue Next 5Y-4.98%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.54, the valuation of CVX can be described as correct.

CVX's Price/Earnings is on the same level as the industry average.

The average S&P500 Price/Earnings ratio is at 28.88. CVX is valued rather cheaply when compared to this.

With a Price/Forward Earnings ratio of 14.84, CVX is valued correctly.

CVX's Price/Forward Earnings is on the same level as the industry average.

When comparing the Price/Forward Earnings ratio of CVX to the average of the S&P500 Index (21.20), we can say CVX is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	13.54
Fwd PE	14.84

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVX is valued a bit cheaper than 63.68% of the companies in the same industry.

CVX's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	15.8
EV/EBITDA	6.22

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.33

EPS Next 2Y5.34%

EPS Next 3Y9.58%

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5. Dividend

5.1 Amount

CVX has a Yearly Dividend Yield of 4.92%, which is a nice return.

Compared to an average industry Dividend Yield of 7.31, CVX pays a bit more dividend than its industry peers.

CVX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.

		Industry Rank	Sector Rank
Dividend Yield	4.92%

5.2 History

On average, the dividend of CVX grows each year by 6.53%, which is quite nice.

CVX has been paying a dividend for at least 10 years, so it has a reliable track record.

CVX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Dividend Growth(5Y)6.53%

Div Incr Years23

Div Non Decr Years23

5.3 Sustainability

CVX pays out 66.82% of its income as dividend. This is not a sustainable payout ratio.

The dividend of CVX is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.

DP66.82%

EPS Next 2Y5.34%

EPS Next 3Y9.58%

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New York Stock Exchange, Inc. / Energy / Oil, Gas & Consumable Fuels

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

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