Stock Analysis: Best Dividend Stocks

Fundamental Rating

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 has a valuation in line with the averages, but it does not seem to be growing. CVX also has an excellent dividend rating. These ratings would make CVX suitable for dividend investing!

1. Profitability

1.1 Basic Checks

In the past year CVX was profitable.

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

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

Looking at the Return On Assets, with a value of 6.87%, CVX is in the better half of the industry, outperforming 69.34% of the companies in the same industry.

CVX has a Return On Equity of 11.59%. This is in the better half of the industry: CVX outperforms 60.38% of its industry peers.

The Return On Invested Capital of CVX (7.73%) is better than 60.38% 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 25.74%.

		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

With a Profit Margin value of 9.13%, CVX perfoms like the industry average, outperforming 52.36% 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.

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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.

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 85.85% 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.

The Debt to Equity ratio of CVX (0.13) is better than 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

WACC9.95%

2.3 Liquidity

A Current Ratio of 1.06 indicates that CVX should not have too much problems paying its short term obligations.

CVX has a Current ratio of 1.06. This is comparable to the rest of the industry: CVX outperforms 46.23% of 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 60.38% 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 -23.46%.

The Earnings Per Share has been growing by 10.14% on average over the past years. This is quite good.

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

CVX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.06% yearly.

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.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.78, which indicates a correct valuation of CVX.

CVX's Price/Earnings is on the same level as the industry average.

CVX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.

Based on the Price/Forward Earnings ratio of 15.10, the valuation of CVX can be described as correct.

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

Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, CVX is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	13.78
Fwd PE	15.1

4.2 Price Multiples

CVX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CVX is cheaper than 64.15% of the companies in the same industry.

CVX's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	16.08
EV/EBITDA	6.09

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)1.36

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.

Compared to an average industry Dividend Yield of 7.33, CVX pays a bit more dividend than its industry peers.

Compared to an average S&P500 Dividend Yield of 2.44, CVX pays a better dividend.

		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 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

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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