Stock Analysis: Best Dividend Stocks

Fundamental Rating

Overall CVX gets a fundamental rating of 5 out of 10. We evaluated CVX against 213 industry peers in the Oil, Gas & Consumable Fuels industry. CVX has an average financial health and profitability rating. CVX has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally CVX also has an excellent dividend rating. These ratings could make CVX a good candidate for dividend investing.

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

The Return On Assets of CVX (6.87%) is better than 69.48% of its industry peers.

CVX's Return On Equity of 11.59% is fine compared to the rest of the industry. CVX outperforms 61.03% of its industry peers.

CVX has a better Return On Invested Capital (7.73%) than 61.03% of its industry peers.

CVX had an Average Return On Invested Capital over the past 3 years of 9.34%. This is significantly below the industry average of 25.70%.

		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

Looking at the Profit Margin, with a value of 9.13%, CVX is in line with its industry, outperforming 52.58% of the companies in the same industry.

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

The Operating Margin of CVX (12.76%) is comparable to the rest of the industry.

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

The Gross Margin of CVX (38.37%) 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

CVX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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.

CVX has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.56 indicates that CVX is not in any danger for bankruptcy at the moment.

CVX has a Altman-Z score of 3.56. This is amongst the best in the industry. CVX outperforms 85.45% 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.

The Debt to FCF ratio of CVX (1.63) is better than 85.45% of its industry peers.

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

CVX has a Debt to Equity ratio of 0.13. This is in the better half of the industry: CVX outperforms 74.65% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.13
Debt/FCF	1.63
Altman-Z	3.56

ROIC/WACC0.77

WACC10.08%

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.

CVX has a Current ratio (1.06) which is in line with 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.

CVX has a Quick ratio of 0.83. This is in the lower half of the industry: CVX underperforms 60.09% 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

CVX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.66%.

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 -0.88%.

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

EPS 1Y (TTM)-25.66%

EPS 3Y7.32%

EPS 5Y10.14%

EPS Q2Q%-25.6%

Revenue 1Y (TTM)-0.88%

Revenue growth 3Y7.52%

Revenue growth 5Y6.65%

Sales Q2Q%-2.27%

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.58 indicates a correct valuation of CVX.

CVX's Price/Earnings ratio is in line with the industry average.

CVX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.10.

The Price/Forward Earnings ratio is 12.16, which indicates a correct valuation of CVX.

CVX's Price/Forward Earnings ratio is in line with the industry average.

When comparing the Price/Forward Earnings ratio of CVX to the average of the S&P500 Index (20.74), we can say CVX is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	14.58
Fwd PE	12.16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVX is valued a bit cheaper than 63.85% of the companies in the same industry.

61.03% of the companies in the same industry are more expensive than CVX, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	15.74
EV/EBITDA	6.06

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.44

EPS Next 2Y5.34%

EPS Next 3Y9.58%

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5. Dividend

5.1 Amount

CVX has a Yearly Dividend Yield of 4.94%, which is a nice return.

Compared to an average industry Dividend Yield of 7.27, CVX pays a bit more dividend than its industry peers.

Compared to an average S&P500 Dividend Yield of 2.43, CVX pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.94%

5.2 History

On average, the dividend of CVX grows each year by 6.53%, 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)6.53%

Div Incr Years23

Div Non Decr Years23

5.3 Sustainability

66.82% of the earnings are spent on dividend by CVX. 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 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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