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 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 could make CVX a good candidate for dividend investing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year CVX was profitable.
CVX had a positive operating cash flow in the past year.
Of the past 5 years CVX 4 years were profitable.
In the past 5 years CVX always reported a positive cash flow from operatings.
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

CVX has a Return On Assets of 6.87%. This is in the better half of the industry: CVX outperforms 69.34% of its industry peers.
CVX has a better Return On Equity (11.59%) than 60.38% of its industry peers.
CVX's Return On Invested Capital of 7.73% is in line compared to the rest of the industry. CVX outperforms 59.91% 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 25.75%.
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 (9.13%) which is comparable to the rest of the 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.
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.
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.
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 3.57. This indicates that CVX is financially healthy and has little risk of bankruptcy at the moment.
CVX's Altman-Z score of 3.57 is amongst the best of 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.
CVX has a better Debt to FCF ratio (1.63) 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's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. CVX outperforms 75.47% of its industry peers.
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.
Looking at the Current ratio, with a value of 1.06, CVX is in line with its industry, outperforming 45.75% of the companies in the same 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 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

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.
CVX shows a decrease in Revenue. In the last year, the revenue decreased by -1.78%.
The Revenue has been growing slightly by 6.65% on average over the past years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

The Price/Earnings ratio is 13.62, which indicates a correct valuation of CVX.
CVX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CVX to the average of the S&P500 Index (28.88), we can say CVX is valued rather cheaply.
The Price/Forward Earnings ratio is 14.93, which indicates a correct valuation of CVX.
CVX's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, CVX is valued a bit cheaper.
Industry RankSector Rank
PE 13.62
Fwd PE 14.93
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 64.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CVX is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 15.9
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)1.34
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.
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 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 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
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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