CHEVRON CORP (CVX) Stock Fundamental Analysis
NYSE:CVX - New York Stock Exchange, Inc. - US1667641005 - Common Stock
We assign a fundamental rating of 5 out of 10 to CVX. CVX was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. CVX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CVX has a expensive valuation and it also scores bad on growth. Finally CVX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CVX was profitable.
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
Looking at the Return On Assets, with a value of 6.43%, CVX is in line with its industry, outperforming 58.25% of the companies in the same industry.
CVX has a Return On Equity (10.68%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.68%, CVX is in line with its industry, outperforming 47.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CVX is significantly below the industry average of 28.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 10.68% | ||
| ROIC | 6.68% |
ROA(3y)9.48%
ROA(5y)5.47%
ROE(3y)15.59%
ROE(5y)8.92%
ROIC(3y)9.08%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 8.60%, CVX perfoms like the industry average, outperforming 42.72% of the companies in the same industry.
In the last couple of years the Profit Margin of CVX has grown nicely.
CVX's Operating Margin of 10.69% is on the low side compared to the rest of the industry. CVX is outperformed by 65.53% of its industry peers.
In the last couple of years the Operating Margin of CVX has grown nicely.
CVX's Gross Margin of 39.42% is in line compared to the rest of the industry. CVX outperforms 46.60% of its industry peers.
CVX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.69% | ||
| PM (TTM) | 8.6% | ||
| GM | 39.42% |
OM growth 3YN/A
OM growth 5Y5.57%
PM growth 3YN/A
PM growth 5Y3.05%
GM growth 3Y-5.36%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CVX is creating some value.
Compared to 1 year ago, CVX has less shares outstanding
The number of shares outstanding for CVX has been reduced compared to 5 years ago.
Compared to 1 year ago, CVX has an improved debt to assets ratio.
2.2 Solvency
CVX has an Altman-Z score of 3.82. This indicates that CVX is financially healthy and has little risk of bankruptcy at the moment.
CVX has a better Altman-Z score (3.82) than 84.47% of its industry peers.
The Debt to FCF ratio of CVX is 1.38, which is an excellent value as it means it would take CVX, only 1.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.38, CVX belongs to the top of the industry, outperforming 82.04% of the companies in the same industry.
CVX has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CVX (0.13) is better than 76.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 3.82 |
ROIC/WACC0.77
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.07 indicates that CVX should not have too much problems paying its short term obligations.
CVX's Current ratio of 1.07 is on the low side compared to the rest of the industry. CVX is outperformed by 60.19% of its industry peers.
CVX has a Quick Ratio of 1.07. 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 0.80, CVX is doing worse than 66.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for CVX have decreased strongly by -16.92% in the last year.
Measured over the past years, CVX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.15% on average per year.
The Revenue has decreased by -4.19% in the past year.
The Revenue has been growing slightly by 4.40% on average over the past years.
EPS 1Y (TTM)-16.92%
EPS 3YN/A
EPS 5Y11.15%
EPS Q2Q%-17.7%
Revenue 1Y (TTM)-4.19%
Revenue growth 3Y27.74%
Revenue growth 5Y4.4%
Sales Q2Q%-6.31%
3.2 Future
CVX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.21% yearly.
Based on estimates for the next years, CVX will show a decrease in Revenue. The Revenue will decrease by -4.70% on average per year.
EPS Next Y-20.17%
EPS Next 2Y-7.76%
EPS Next 3Y-0.08%
EPS Next 5Y1.21%
Revenue Next Year-3.35%
Revenue Next 2Y-3.88%
Revenue Next 3Y-0.83%
Revenue Next 5Y-4.7%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.83 indicates a correct valuation of CVX.
CVX's Price/Earnings ratio is in line with the industry average.
CVX is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
CVX is valuated correctly with a Price/Forward Earnings ratio of 14.16.
CVX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, CVX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CVX.
CVX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.16 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y-7.76%
EPS Next 3Y-0.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.09%, CVX is a good candidate for dividend investing.
CVX's Dividend Yield is a higher than the industry average which is at 6.39.
Compared to an average S&P500 Dividend Yield of 2.28, CVX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of CVX is nicely growing with an annual growth rate of 6.07%!
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)6.07%
Div Incr Years23
Div Non Decr Years23
5.3 Sustainability
70.28% of the earnings are spent on dividend by CVX. This is not a sustainable payout ratio.
CVX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP70.28%
EPS Next 2Y-7.76%
EPS Next 3Y-0.08%
CHEVRON CORP
NYSE:CVX (1/21/2025, 7:00:00 PM)
After market: 158.24 0 (0%)158.24
-3.23 (-2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.29%
Inst Owner Change-0.37%
Ins Owners0.04%
Ins Owner Change-1.94%
Market Cap284.37B
Analysts78.67
Price Target179.12 (13.2%)
Short Float %3.63%
Short Ratio7.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend6
Dividend Growth(5Y)6.07%
DP70.28%
Div Incr Years23
Div Non Decr Years23
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.62%
Min EPS beat(2)-13.86%
Max EPS beat(2)2.63%
EPS beat(4)3
Avg EPS beat(4)-0.93%
Min EPS beat(4)-13.86%
Max EPS beat(4)6.55%
EPS beat(8)5
Avg EPS beat(8)-3.16%
EPS beat(12)8
Avg EPS beat(12)-1.26%
EPS beat(16)10
Avg EPS beat(16)-5.66%
Revenue beat(2)1
Avg Revenue beat(2)1.09%
Min Revenue beat(2)-0.24%
Max Revenue beat(2)2.41%
Revenue beat(4)1
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-9.51%
Max Revenue beat(4)2.41%
Revenue beat(8)4
Avg Revenue beat(8)-0.25%
Revenue beat(12)7
Avg Revenue beat(12)2.19%
Revenue beat(16)9
Avg Revenue beat(16)1.61%
PT rev (1m)0.91%
PT rev (3m)2.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.47%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.83 | ||
| Fwd PE | 14.16 | ||
| P/S | 1.47 | ||
| P/FCF | 15.16 | ||
| P/OCF | 8.07 | ||
| P/B | 1.82 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)11.44
EY7.23%
EPS(NY)11.17
Fwd EY7.06%
FCF(TTM)10.44
FCFY6.6%
OCF(TTM)19.6
OCFY12.39%
SpS107.96
BVpS86.92
TBVpS84.29
PEG (NY)N/A
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 10.68% | ||
| ROCE | 9.28% | ||
| ROIC | 6.68% | ||
| ROICexc | 6.83% | ||
| ROICexgc | 6.98% | ||
| OM | 10.69% | ||
| PM (TTM) | 8.6% | ||
| GM | 39.42% | ||
| FCFM | 9.67% |
ROA(3y)9.48%
ROA(5y)5.47%
ROE(3y)15.59%
ROE(5y)8.92%
ROIC(3y)9.08%
ROIC(5y)N/A
ROICexc(3y)9.62%
ROICexc(5y)N/A
ROICexgc(3y)9.84%
ROICexgc(5y)N/A
ROCE(3y)12.63%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y9.7%
ROICexc growth 3YN/A
ROICexc growth 5Y9.69%
OM growth 3YN/A
OM growth 5Y5.57%
PM growth 3YN/A
PM growth 5Y3.05%
GM growth 3Y-5.36%
GM growth 5Y-0.49%
F-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 88.73% | ||
| Cap/Sales | 8.49% | ||
| Interest Coverage | 41.57 | ||
| Cash Conversion | 89.63% | ||
| Profit Quality | 112.46% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.82 |
F-Score5
WACC8.69%
ROIC/WACC0.77
Cap/Depr(3y)69.89%
Cap/Depr(5y)60.75%
Cap/Sales(3y)6.1%
Cap/Sales(5y)7.56%
Profit Quality(3y)111.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.92%
EPS 3YN/A
EPS 5Y11.15%
EPS Q2Q%-17.7%
EPS Next Y-20.17%
EPS Next 2Y-7.76%
EPS Next 3Y-0.08%
EPS Next 5Y1.21%
Revenue 1Y (TTM)-4.19%
Revenue growth 3Y27.74%
Revenue growth 5Y4.4%
Sales Q2Q%-6.31%
Revenue Next Year-3.35%
Revenue Next 2Y-3.88%
Revenue Next 3Y-0.83%
Revenue Next 5Y-4.7%
EBIT growth 1Y-32.68%
EBIT growth 3YN/A
EBIT growth 5Y10.22%
EBIT Next Year27.8%
EBIT Next 3Y17.17%
EBIT Next 5Y1.5%
FCF growth 1Y-47.62%
FCF growth 3Y128.64%
FCF growth 5Y3.29%
OCF growth 1Y-24.34%
OCF growth 3Y49.88%
OCF growth 5Y3.07%