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 213 industry peers in the Oil, Gas & Consumable Fuels industry. CVX has only an average score on both its financial health and profitability. 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!

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.

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

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 69.48% of the companies in the same industry.

CVX has a better Return On Equity (11.59%) than 61.03% of its industry peers.

Looking at the Return On Invested Capital, with a value of 7.73%, CVX is in the better half of the industry, outperforming 61.03% of the companies in the same industry.

The Average Return On Invested Capital over the past 3 years for CVX is significantly below the industry average of 25.69%.

		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 has a Profit Margin (9.13%) which is in line with its industry peers.

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

Looking at the Operating Margin, with a value of 12.76%, CVX is in line with its industry, outperforming 43.19% of the companies in the same industry.

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

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.

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.

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.

Compared to 1 year ago, CVX has a worse debt to assets ratio.

2.2 Solvency

CVX has an Altman-Z score of 3.56. This indicates that CVX is financially healthy and has little risk of bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 3.56, CVX belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.

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.

With an excellent Debt to FCF ratio value of 1.63, CVX belongs to the best of the industry, outperforming 85.45% of the companies in the same industry.

A Debt/Equity ratio of 0.13 indicates that CVX is not too dependend on debt financing.

CVX has a better Debt to Equity ratio (0.13) than 74.65% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.13
Debt/FCF	1.63
Altman-Z	3.56

ROIC/WACC0.77

WACC10.05%

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'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 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 -25.66% in the last year.

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 -0.88% in the past year.

The Revenue has been growing slightly by 6.65% on average over the past years.

EPS 1Y (TTM)-25.66%

EPS 3Y7.32%

EPS 5Y10.14%

EPS Q2Q%-25.6%

Revenue 1Y (TTM)-0.88%

Revenue growth 3Y7.52%

Revenue growth 5Y6.65%

Sales Q2Q%-2.27%

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

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

Based on the Price/Earnings ratio of 14.60, the valuation of CVX can be described as correct.

CVX's Price/Earnings ratio is in line with the industry average.

The average S&P500 Price/Earnings ratio is at 23.99. CVX is valued slightly cheaper when compared to this.

CVX is valuated correctly with a Price/Forward Earnings ratio of 12.18.

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

CVX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.35.

		Industry Rank	Sector Rank
PE	14.6
Fwd PE	12.18

4.2 Price Multiples

CVX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CVX is cheaper than 63.38% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, CVX is valued a bit cheaper than 61.03% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.77
EV/EBITDA	6.06

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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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.05%, CVX is a good candidate for dividend investing.

CVX's Dividend Yield is a higher than the industry average which is at 7.29.

CVX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.

		Industry Rank	Sector Rank
Dividend Yield	5.05%

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 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

5.3 Sustainability

CVX pays out 66.82% of its income as dividend. This is not a sustainable payout ratio.

The dividend of CVX is growing around the same rate as the earnings are growing. If this keeps up 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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