Stock Analysis: Best Dividend Stocks

Fundamental Rating

Overall CVX gets a fundamental rating of 5 out of 10. We evaluated CVX against 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. Finally CVX also has an excellent dividend rating. With these ratings, CVX could be worth investigating further for dividend investing!.

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.

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

1.2 Ratios

CVX's Return On Assets of 6.87% is fine compared to the rest of the industry. CVX outperforms 69.34% of its industry peers.

With a decent Return On Equity value of 11.59%, CVX is doing good in the industry, outperforming 60.38% of the companies in the same industry.

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

The Average Return On Invested Capital over the past 3 years for CVX 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.

CVX has a Operating Margin (12.76%) which is in line with its industry peers.

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

CVX has a Gross Margin (38.37%) which is in line with 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.

Compared to 1 year ago, CVX has less shares outstanding

Compared to 5 years ago, CVX has less shares outstanding

CVX has a worse debt/assets ratio than last year.

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.

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.

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 has a better Debt to Equity ratio (0.13) 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

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 46.23% of the companies in the same industry.

A Quick Ratio of 0.83 indicates that CVX may have some problems paying 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 60.38% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.06
Quick Ratio	0.83

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CVX have decreased strongly by -23.46% in the last year.

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.

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

The Earnings Per Share is expected to grow by 7.06% on average over the next years.

The Revenue is expected to decrease by -4.98% on average over the next years.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.78 indicates a correct valuation of CVX.

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

The average S&P500 Price/Earnings ratio is at 28.22. CVX is valued rather cheaply when compared to this.

The Price/Forward Earnings ratio is 15.10, which indicates a correct valuation of CVX.

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

CVX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.

		Industry Rank	Sector Rank
PE	13.78
Fwd PE	15.1

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CVX is valued a bit cheaper than 64.15% of the companies in the same industry.

The rest of the industry has a similar Price/Free Cash Flow ratio as CVX.

		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 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

5.3 Sustainability

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