Stock Analysis: Best Dividend Stocks

Fundamental Rating

CVX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of CVX get a neutral evaluation. Nothing too spectacular is happening here. CVX is valued correctly, but it does not seem to be growing. CVX also has an excellent dividend rating. This makes CVX very considerable 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.

CVX had positive earnings in 4 of the past 5 years.

In the past 5 years CVX always reported a positive cash flow from operatings.

1.2 Ratios

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

The Return On Equity of CVX (11.59%) is better than 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.

Measured over the past 3 years, the Average Return On Invested Capital for CVX is significantly below the industry average of 27.43%.

		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 comparable to the rest of the industry.

CVX's Profit Margin has improved in the last couple of years.

CVX's Operating Margin of 12.76% is in line compared to the rest of the industry. CVX outperforms 41.98% of its industry peers.

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

CVX has a Gross Margin (38.37%) which is comparable to the rest of the 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

CVX has less shares outstanding than it did 5 years ago.

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

2.2 Solvency

An Altman-Z score of 3.58 indicates that CVX is not in any danger for bankruptcy at the moment.

CVX's Altman-Z score of 3.58 is amongst the best of the industry. CVX outperforms 86.32% of its industry peers.

The Debt to FCF ratio of CVX is 1.63, which is an excellent value as it means it would take CVX, only 1.63 years of fcf income to pay off all of its debts.

CVX has a better Debt to FCF ratio (1.63) than 85.85% of its industry peers.

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

The Debt to Equity ratio of CVX (0.13) is better than 75.47% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.13
Debt/FCF	1.63
Altman-Z	3.58

ROIC/WACC0.77

WACC10.07%

2.3 Liquidity

A Current Ratio of 1.06 indicates that CVX should not have too much problems paying its short term obligations.

CVX has a Current ratio of 1.06. This is comparable to the rest of the industry: CVX outperforms 45.75% of its industry peers.

CVX has a Quick Ratio of 1.06. This is a bad value and indicates that CVX is not financially healthy enough and could expect problems in meeting its short term obligations.

Looking at the Quick ratio, with a value of 0.83, CVX is doing worse than 60.38% of the companies in the same industry.

		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

CVX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.46%.

CVX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.14% yearly.

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

Measured over the past years, CVX shows a small growth in Revenue. The Revenue has been growing by 6.65% on average per year.

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

CVX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.06% yearly.

Based on estimates for the next years, CVX will show a decrease in Revenue. The Revenue will decrease by -4.98% on average per year.

EPS Next Y-8.75%

EPS Next 2Y5.34%

EPS Next 3Y9.58%

EPS Next 5Y7.06%

Revenue Next Year-3.86%

Revenue Next 2Y-1.47%

Revenue Next 3Y-0.37%

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.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.72 indicates a correct valuation of CVX.

Compared to the rest of the industry, the Price/Earnings ratio of CVX is on the same level as its industry peers.

The average S&P500 Price/Earnings ratio is at 28.29. CVX is valued rather cheaply when compared to this.

With a Price/Forward Earnings ratio of 15.03, CVX is valued correctly.

The rest of the industry has a similar Price/Forward Earnings ratio as CVX.

CVX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.

		Industry Rank	Sector Rank
PE	13.72
Fwd PE	15.03

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVX is valued a bit cheaper than the industry average as 62.26% of the companies are valued more expensively.

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

		Industry Rank	Sector Rank
P/FCF	16.01
EV/EBITDA	6.16

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.35

EPS Next 2Y5.34%

EPS Next 3Y9.58%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.96%, CVX is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 7.41, 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 2.51.

		Industry Rank	Sector Rank
Dividend Yield	4.96%

5.2 History

The dividend of CVX is nicely growing with an annual growth rate of 6.53%!

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

CVX has not decreased their dividend for at least 10 years, which is a reliable track record.

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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