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

Overall CVX gets a fundamental rating of 5 out of 10. We evaluated CVX against 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. Finally CVX also has an excellent dividend rating. With these ratings, CVX could be worth investigating further 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.
Of the past 5 years CVX 4 years were profitable.
Each year in the past 5 years CVX had a positive operating cash flow.
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 69.48% of its industry peers.
With a decent Return On Equity value of 11.59%, CVX is doing good in the industry, outperforming 61.03% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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 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.
Looking at the Operating Margin, with a value of 12.76%, CVX is in line with its industry, outperforming 42.72% of the companies in the same 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 45.54% of the companies in the same industry.
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

CVX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CVX has less shares outstanding than it did 1 year ago.
CVX has less shares outstanding than it did 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.
Looking at the Altman-Z score, with a value of 3.59, 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.
Looking at the Debt to FCF ratio, with a value of 1.63, CVX belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
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 75.59% 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.
With a Current ratio value of 1.06, CVX perfoms like the industry average, outperforming 46.48% 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 60.09% 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%.
The Earnings Per Share has been growing by 10.14% on average over the past years. This is quite good.
CVX shows a decrease in Revenue. In the last year, the revenue decreased by -1.78%.
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

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.
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

With a Price/Earnings ratio of 14.89, CVX is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as CVX.
When comparing the Price/Earnings ratio of CVX to the average of the S&P500 Index (28.18), we can say CVX is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.42 indicates a correct valuation of CVX.
CVX's Price/Forward Earnings ratio is in line with the industry average.
CVX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.81.
Industry RankSector Rank
PE 14.89
Fwd PE 12.42
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

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.
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 16.08
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)1.47
EPS Next 2Y5.34%
EPS Next 3Y9.58%

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8

5. Dividend

5.1 Amount

CVX has a Yearly Dividend Yield of 4.94%, which is a nice return.
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 2.45.
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

66.82% of the earnings are spent on dividend by CVX. 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%
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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