Stock Analysis: Best Dividend Stocks

Fundamental Rating

Taking everything into account, CVX scores 5 out of 10 in our fundamental rating. CVX was compared to 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. Finally 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.

Of the past 5 years CVX 4 years were profitable.

Each year in the past 5 years CVX had a positive operating cash flow.

1.2 Ratios

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

With a decent Return On Equity value of 11.59%, CVX is doing good in the industry, outperforming 60.38% of the companies in the same industry.

The Return On Invested Capital of CVX (7.73%) is comparable to the rest of the industry.

CVX had an Average Return On Invested Capital over the past 3 years of 9.34%. This is significantly below the industry average of 25.74%.

		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's Profit Margin of 9.13% is in line compared to the rest of the industry. CVX outperforms 52.36% of its industry peers.

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

With a Operating Margin value of 12.76%, CVX perfoms like the industry average, outperforming 41.98% of the companies in the same industry.

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

With a Gross Margin value of 38.37%, CVX perfoms like the industry average, outperforming 45.28% of the companies in the same 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 3.57 indicates that CVX is not in any danger for bankruptcy at the moment.

CVX has a Altman-Z score of 3.57. This is amongst the best in the industry. CVX outperforms 85.38% 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 85.85% 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 75.47% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.13
Debt/FCF	1.63
Altman-Z	3.57

ROIC/WACC0.78

WACC9.86%

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.

The Quick ratio of CVX (0.83) is worse than 60.85% 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

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.

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

The Earnings Per Share is expected to grow by 7.06% on average over the next years.

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

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.

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

With a Price/Earnings ratio of 13.56, CVX is valued correctly.

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

CVX is valuated cheaply when we compare the Price/Earnings ratio to 27.85, which is the current average of the S&P500 Index.

The Price/Forward Earnings ratio is 14.86, which indicates a correct valuation of CVX.

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

CVX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	13.56
Fwd PE	14.86

4.2 Price Multiples

64.15% of the companies in the same industry are more expensive than CVX, based on the Enterprise Value to EBITDA ratio.

The rest of the industry has a similar Price/Free Cash Flow ratio as CVX.

		Industry Rank	Sector Rank
P/FCF	15.82
EV/EBITDA	6.08

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.34

EPS Next 2Y5.34%

EPS Next 3Y9.58%

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5. Dividend

5.1 Amount

CVX has a Yearly Dividend Yield of 4.92%, which is a nice return.

CVX's Dividend Yield is a higher than the industry average which is at 7.31.

CVX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.

		Industry Rank	Sector Rank
Dividend Yield	4.92%

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 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.

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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