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

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. These ratings would make CVX suitable for dividend investing!


Dividend Valuation Growth Profitability Health

5

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.
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

The Return On Assets of CVX (6.87%) is better than 69.34% of its industry peers.
Looking at the Return On Equity, with a value of 11.59%, CVX is in the better half of the industry, outperforming 60.38% of the companies in the same industry.
CVX has a Return On Invested Capital (7.73%) which 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 25.75%.
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 has a Profit Margin of 9.13%. This is comparable 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.
CVX has a Operating Margin of 12.76%. This is comparable 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's Gross Margin of 38.37% is in line compared 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 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.
CVX has less shares outstanding than it did 1 year ago.
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.
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

An Altman-Z score of 3.57 indicates that CVX is not in any danger for bankruptcy at the moment.
The Altman-Z score of CVX (3.57) is better than 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.
CVX's Debt to FCF ratio of 1.63 is amongst the best of the industry. CVX outperforms 85.85% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that CVX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, CVX is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.63
Altman-Z 3.57
ROIC/WACC0.78
WACC9.87%
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.
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 60.85% 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 -23.46%.
The Earnings Per Share has been growing by 10.14% on average over the past years. This is quite good.
The Revenue has decreased by -1.78% in the past 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 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

CVX is valuated correctly with a Price/Earnings ratio of 13.66.
CVX's Price/Earnings ratio is in line with the industry average.
CVX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
With a Price/Forward Earnings ratio of 14.97, CVX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.20. CVX is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.66
Fwd PE 14.97
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

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 RankSector Rank
P/FCF 15.93
EV/EBITDA 6.08
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)1.35
EPS Next 2Y5.34%
EPS Next 3Y9.58%

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8

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.92%, CVX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.31, CVX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, CVX pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.92%

5.2 History

The dividend of CVX is nicely growing with an annual growth rate of 6.53%!
CVX has paid a dividend for at least 10 years, which is 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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