CHEVRON CORP (CVX) Stock Fundamental Analysis
NYSE:CVX - New York Stock Exchange, Inc. - US1667641005 - Common Stock - Currency: USD
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 is valued correctly, but it does not seem to be growing. Finally 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.
CVX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CVX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.87%, CVX is doing good in the industry, outperforming 69.34% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.59%, CVX is in the better half of the industry, outperforming 60.85% of the companies in the same industry.
CVX has a better Return On Invested Capital (7.73%) than 60.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CVX is significantly below the industry average of 27.42%.
| 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.
CVX's Operating Margin has improved in the last couple of years.
CVX has a Gross Margin of 38.37%. This is comparable to the rest of the industry: CVX outperforms 45.28% of its industry peers.
CVX's Gross Margin has declined in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
CVX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CVX has been reduced compared to 1 year ago.
The number of shares outstanding for CVX has been reduced compared to 5 years ago.
Compared to 1 year ago, CVX has a worse debt to assets ratio.
2.2 Solvency
CVX has an Altman-Z score of 3.58. This indicates that CVX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.58, CVX belongs to the best of the industry, outperforming 86.32% of the companies in the same industry.
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.
CVX's Debt to FCF ratio of 1.63 is amongst the best of the industry. CVX outperforms 85.85% of its industry peers.
CVX has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
CVX has a Debt to Equity ratio of 0.13. This is in the better half of the industry: CVX outperforms 75.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 3.58 |
ROIC/WACC0.78
WACC9.95%
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.
Looking at the Current ratio, with a value of 1.06, CVX is in line with its industry, outperforming 45.28% of the companies in the same industry.
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 |
3. Growth
3.1 Past
The earnings per share for CVX have decreased strongly by -23.46% in the last year.
CVX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.14% yearly.
Looking at the last year, CVX shows a decrease in Revenue. The Revenue has decreased by -1.78% in the last year.
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
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.
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 Y3.73%
EPS Next 2Y10.88%
EPS Next 3Y12.02%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.72, which 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.
The Price/Forward Earnings ratio is 13.23, which indicates a correct valuation of CVX.
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 (21.08), we can say CVX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 13.23 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.01 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CVX's earnings are expected to grow with 12.02% in the coming years.
PEG (NY)3.68
PEG (5Y)1.35
EPS Next 2Y10.88%
EPS Next 3Y12.02%
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 7.52, CVX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, CVX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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.
CVX's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP66.82%
EPS Next 2Y10.88%
EPS Next 3Y12.02%
137.87
+2.51 (+1.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners68.58%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner Change2.63%
Market Cap240.82B
Analysts78.62
Price Target180.33 (30.8%)
Short Float %3.85%
Short Ratio8.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
Yearly Dividend6.49
Dividend Growth(5Y)6.53%
DP66.82%
Div Incr Years23
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.39%
Min EPS beat(2)-3.41%
Max EPS beat(2)2.63%
EPS beat(4)2
Avg EPS beat(4)-3.42%
Min EPS beat(4)-13.86%
Max EPS beat(4)2.63%
EPS beat(8)5
Avg EPS beat(8)-2.64%
EPS beat(12)8
Avg EPS beat(12)0.02%
EPS beat(16)10
Avg EPS beat(16)1.24%
Revenue beat(2)2
Avg Revenue beat(2)6.51%
Min Revenue beat(2)2.41%
Max Revenue beat(2)10.61%
Revenue beat(4)2
Avg Revenue beat(4)2%
Min Revenue beat(4)-4.79%
Max Revenue beat(4)10.61%
Revenue beat(8)5
Avg Revenue beat(8)1.22%
Revenue beat(12)8
Avg Revenue beat(12)3.12%
Revenue beat(16)10
Avg Revenue beat(16)2.66%
PT rev (1m)0.05%
PT rev (3m)0.67%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)0.31%
EPS NY rev (3m)-6.69%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 13.23 | ||
| P/S | 1.25 | ||
| P/FCF | 16.01 | ||
| P/OCF | 7.65 | ||
| P/B | 1.58 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 6.16 |
EPS(TTM)10.05
EY7.29%
EPS(NY)10.42
Fwd EY7.56%
FCF(TTM)8.61
FCFY6.25%
OCF(TTM)18.03
OCFY13.08%
SpS110.73
BVpS87.2
TBVpS84.58
PEG (NY)3.68
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | 11.59% | ||
| ROCE | 11.3% | ||
| ROIC | 7.73% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 8.16% | ||
| OM | 12.76% | ||
| PM (TTM) | 9.13% | ||
| GM | 38.37% | ||
| FCFM | 7.78% |
ROA(3y)9.6%
ROA(5y)6.6%
ROE(3y)15.71%
ROE(5y)10.83%
ROIC(3y)9.34%
ROIC(5y)N/A
ROICexc(3y)9.89%
ROICexc(5y)N/A
ROICexgc(3y)10.11%
ROICexgc(5y)N/A
ROCE(3y)13.67%
ROCE(5y)N/A
ROICexcg growth 3Y11.59%
ROICexcg growth 5Y65.58%
ROICexc growth 3Y11.57%
ROICexc growth 5Y65.59%
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%
F-Score5
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 95.17% | ||
| Cap/Sales | 8.5% | ||
| Interest Coverage | 42.04 | ||
| Cash Conversion | 75.05% | ||
| Profit Quality | 85.18% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 3.58 |
F-Score5
WACC9.95%
ROIC/WACC0.78
Cap/Depr(3y)86.64%
Cap/Depr(5y)70.12%
Cap/Sales(3y)7.21%
Cap/Sales(5y)7.25%
Profit Quality(3y)94.62%
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 Y3.73%
EPS Next 2Y10.88%
EPS Next 3Y12.02%
EPS Next 5Y7.06%
Revenue 1Y (TTM)-1.78%
Revenue growth 3Y7.52%
Revenue growth 5Y6.65%
Sales Q2Q%10.7%
Revenue Next Year-3.86%
Revenue Next 2Y-1.47%
Revenue Next 3Y-0.37%
Revenue Next 5Y-4.98%
EBIT growth 1Y-1.81%
EBIT growth 3Y12.39%
EBIT growth 5Y66.6%
EBIT Next Year59.54%
EBIT Next 3Y24.21%
EBIT Next 5Y17.43%
FCF growth 1Y-23.94%
FCF growth 3Y-10.71%
FCF growth 5Y2.65%
OCF growth 1Y-11.56%
OCF growth 3Y2.57%
OCF growth 5Y2.89%