Best Dividend Stocks. Analyze the stocks with the best dividend, while also showing decent profitability and health.


CHEVRON CORP

New York Stock Exchange, Inc. / Energy / Oil, Gas & Consumable Fuels

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CVX. CVX was compared to 213 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 has a valuation in line with the averages, but it does not seem to be growing. CVX also has an excellent dividend rating. This makes CVX very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

CVX had positive earnings in the past year.
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 each of the past 5 years.
CVX Yearly Net Income VS EBIT VS OCF VS FCFCVX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B 30B 40B

1.2 Ratios

With a decent Return On Assets value of 6.87%, CVX is doing good in the industry, outperforming 69.48% of the companies in the same industry.
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 Return On Invested Capital of 7.73%. This is in the better half of the industry: CVX outperforms 61.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CVX is significantly below the industry average of 25.70%.
Industry RankSector 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
CVX Yearly ROA, ROE, ROICCVX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

1.3 Margins

CVX's Profit Margin of 9.13% is in line compared to the rest of the industry. CVX outperforms 52.58% of its industry peers.
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.
In the last couple of years the Operating Margin of CVX has grown nicely.
CVX has a Gross Margin of 38.37%. This is comparable to the rest of the industry: CVX outperforms 45.54% of its industry peers.
CVX's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CVX Yearly Profit, Operating, Gross MarginsCVX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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6

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
The number of shares outstanding for CVX has been reduced compared to 5 years ago.
The debt/assets ratio for CVX is higher compared to a year ago.
CVX Yearly Shares OutstandingCVX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
CVX Yearly Total Debt VS Total AssetsCVX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

2.2 Solvency

CVX has an Altman-Z score of 3.59. This indicates that CVX is financially healthy and has little risk of bankruptcy at the moment.
CVX has a Altman-Z score of 3.59. This is amongst the best in the industry. CVX outperforms 85.45% of its industry peers.
The Debt to FCF ratio of CVX is 1.63, which is an excellent value as it means it would take CVX, only 1.63 years of fcf income to pay off all of its debts.
CVX has a better Debt to FCF ratio (1.63) than 85.92% 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 better Debt to Equity ratio (0.13) than 75.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.63
Altman-Z 3.59
ROIC/WACC0.77
WACC10.09%
CVX Yearly LT Debt VS Equity VS FCFCVX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50B 100B 150B

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.
The Current ratio of CVX (1.06) is comparable to the rest of the 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.
CVX's Quick ratio of 0.83 is on the low side compared to the rest of the industry. CVX is outperformed by 60.09% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.83
CVX Yearly Current Assets VS Current LiabilitesCVX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B 50B

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2

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%.
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.
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)-1.78%
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.
The Revenue is expected to decrease by -4.98% on average over the next years.
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.
CVX Yearly Revenue VS EstimatesCVX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50B 100B 150B 200B
CVX Yearly EPS VS EstimatesCVX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.63, the valuation of CVX can be described as correct.
CVX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.18, CVX is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.20 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 (20.81), we can say CVX is valued slightly cheaper.
Industry RankSector Rank
PE 14.63
Fwd PE 12.2
CVX Price Earnings VS Forward Price EarningsCVX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVX is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
60.09% of the companies in the same industry are more expensive than CVX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.79
EV/EBITDA 6.19
CVX Per share dataCVX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.94%, CVX is a good candidate for dividend investing.
CVX's Dividend Yield is a higher than the industry average which is at 7.29.
Compared to an average S&P500 Dividend Yield of 2.45, CVX pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.94%

5.2 History

The dividend of CVX is nicely growing with an annual growth rate of 6.53%!
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
CVX Yearly Dividends per shareCVX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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%
CVX Yearly Income VS Free CF VS DividendCVX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B 30B
CVX Dividend Payout.CVX Dividend Payout, showing the Payout Ratio.CVX Dividend Payout.PayoutRetained Earnings

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