CHEVRON CORP (CVX) Stock Fundamental Analysis
NYSE:CVX - New York Stock Exchange, Inc. - US1667641005 - Common Stock - Currency: USD
Taking everything into account, CVX scores 4 out of 10 in our fundamental rating. CVX was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. CVX has only an average score on both its financial health and profitability. CVX does not seem to be growing, but still is valued expensively. CVX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CVX was profitable.
CVX had a positive operating cash flow in the past year.
CVX had positive earnings in 4 of the past 5 years.
CVX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 6.43%, CVX perfoms like the industry average, outperforming 57.84% of the companies in the same industry.
The Return On Equity of CVX (10.68%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.35%, CVX perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 10.68% | ||
| ROIC | 6.35% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 8.60%, CVX perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
CVX's Profit Margin has improved in the last couple of years.
CVX has a worse Operating Margin (10.69%) than 65.69% of its industry peers.
CVX's Operating Margin has improved in the last couple of years.
CVX has a Gross Margin (39.42%) which is in line with its industry peers.
CVX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.69% | ||
| PM (TTM) | 8.6% | ||
| GM | 39.42% |
OM growth 3Y2.85%
OM growth 5Y54.69%
PM growth 3Y-3.12%
PM growth 5Y34.35%
GM growth 3Y-3.4%
GM growth 5Y-2.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CVX is destroying value.
There is no outstanding debt for CVX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.80 indicates that CVX is not in any danger for bankruptcy at the moment.
CVX has a better Altman-Z score (3.80) than 84.31% of its industry peers.
CVX has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.38, CVX belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that CVX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.13, CVX is doing good in the industry, outperforming 75.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 3.8 |
ROIC/WACC0.74
WACC8.59%
2.3 Liquidity
CVX has a Current Ratio of 1.07. This is a normal value and indicates that CVX is financially healthy and should not expect problems in meeting 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 60.78% of its industry peers.
A Quick Ratio of 0.80 indicates that CVX may have some problems paying its short term obligations.
CVX has a worse Quick ratio (0.80) than 65.69% of its industry peers.
| 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 -23.46% 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 10.14% on average per year.
CVX shows a decrease in Revenue. In the last year, the revenue decreased by -1.78%.
The Revenue has been growing slightly by 6.65% on average over the past years.
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 6.99% on average per year.
The Revenue is expected to decrease by -4.98% on average over the next years.
EPS Next Y3.4%
EPS Next 2Y10.77%
EPS Next 3Y11.8%
EPS Next 5Y6.99%
Revenue Next Year-3.99%
Revenue Next 2Y0.59%
Revenue Next 3Y-0.65%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.61, the valuation of CVX can be described as correct.
CVX's Price/Earnings ratio is in line with the industry average.
CVX is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.10 indicates a correct valuation of CVX.
The rest of the industry has a similar Price/Forward Earnings ratio as CVX.
When comparing the Price/Forward Earnings ratio of CVX to the average of the S&P500 Index (22.68), we can say CVX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
CVX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CVX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.59
PEG (5Y)1.54
EPS Next 2Y10.77%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, CVX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.75, CVX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, CVX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
5.2 History
On average, the dividend of CVX grows each year by 6.07%, which is quite nice.
CVX has paid a dividend for at least 10 years, which is 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
CVX pays out 70.28% 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.
DP70.28%
EPS Next 2Y10.77%
EPS Next 3Y11.8%
156.92
-1.87 (-1.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners69.29%
Inst Owner Change-0.64%
Ins Owners0.04%
Ins Owner Change2.77%
Market Cap282.00B
Analysts78.62
Price Target179.77 (14.56%)
Short Float %3.52%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend6
Dividend Growth(5Y)6.07%
DP70.28%
Div Incr Years23
Div Non Decr Years23
Ex-Date
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)0.36%
PT rev (3m)4.29%
EPS NQ rev (1m)-12.58%
EPS NQ rev (3m)-14.65%
EPS NY rev (1m)-6.98%
EPS NY rev (3m)-10.12%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 15.1 | ||
| P/S | 1.45 | ||
| P/FCF | 15.03 | ||
| P/OCF | 8 | ||
| P/B | 1.81 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)10.05
EY6.4%
EPS(NY)10.39
Fwd EY6.62%
FCF(TTM)10.44
FCFY6.65%
OCF(TTM)19.6
OCFY12.49%
SpS107.96
BVpS86.92
TBVpS84.29
PEG (NY)4.59
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 10.68% | ||
| ROCE | 9.28% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.49% | ||
| ROICexgc | 6.63% | ||
| OM | 10.69% | ||
| PM (TTM) | 8.6% | ||
| GM | 39.42% | ||
| FCFM | 9.67% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.85%
OM growth 5Y54.69%
PM growth 3Y-3.12%
PM growth 5Y34.35%
GM growth 3Y-3.4%
GM growth 5Y-2.19%
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 | 3.8 |
F-Score5
WACC8.59%
ROIC/WACC0.74
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.46%
EPS 3Y7.32%
EPS 5Y10.14%
EPS Q2Q%-40.29%
EPS Next Y3.4%
EPS Next 2Y10.77%
EPS Next 3Y11.8%
EPS Next 5Y6.99%
Revenue 1Y (TTM)-1.78%
Revenue growth 3Y7.52%
Revenue growth 5Y6.65%
Sales Q2Q%10.7%
Revenue Next Year-3.99%
Revenue Next 2Y0.59%
Revenue Next 3Y-0.65%
Revenue Next 5Y-4.98%
EBIT growth 1Y-32.68%
EBIT growth 3Y10.58%
EBIT growth 5Y64.98%
EBIT Next Year58.85%
EBIT Next 3Y23.67%
EBIT Next 5Y7.3%
FCF growth 1Y-7.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1.24%
OCF growth 3YN/A
OCF growth 5YN/A