Overall CVX gets a fundamental rating of 4 out of 10. We evaluated CVX against 207 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 expensive valuation and it also scores bad on growth. CVX also has an excellent dividend rating. These ratings could make CVX a good candidate for dividend investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CVX was profitable.
In the past year CVX had a positive cash flow from operations.
CVX had positive earnings in 4 of the past 5 years.
Of the past 5 years CVX 4 years had a positive operating cash flow.

1.2 Ratios

CVX has a Return On Assets of 3.91%. This is comparable to the rest of the industry: CVX outperforms 56.04% of its industry peers.
With a Return On Equity value of 6.73%, CVX perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.76%, CVX is in line with its industry, outperforming 42.51% of the companies in the same industry.
CVX had an Average Return On Invested Capital over the past 3 years of 9.34%. This is significantly below the industry average of 21.94%.
The last Return On Invested Capital (4.76%) for CVX is well below the 3 year average (9.34%), which needs to be investigated, but indicates that CVX had better years and this may not be a problem.

		Industry Rank	Sector Rank
ROA	3.91%
ROE	6.73%
ROIC	4.76%

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 6.83%, CVX perfoms like the industry average, outperforming 49.76% of the companies in the same industry.
In the last couple of years the Profit Margin of CVX has grown nicely.
CVX has a Operating Margin of 10.82%. This is comparable to the rest of the industry: CVX outperforms 43.00% of its industry peers.
In the last couple of years the Operating Margin of CVX has grown nicely.
The Gross Margin of CVX (39.56%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CVX has declined.

		Industry Rank	Sector Rank
OM	10.82%
PM (TTM)	6.83%
GM	39.56%

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) just above the Cost of Capital (WACC), CVX is creating some value.
CVX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 3.24 indicates that CVX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.24, CVX belongs to the best of the industry, outperforming 84.06% of the companies in the same industry.
The Debt to FCF ratio of CVX is 2.69, which is a good value as it means it would take CVX, 2.69 years of fcf income to pay off all of its debts.
CVX has a better Debt to FCF ratio (2.69) than 78.26% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that CVX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, CVX is in the better half of the industry, outperforming 72.46% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.2
Debt/FCF	2.69
Altman-Z	3.24

ROIC/WACC0.56

WACC8.47%

2.3 Liquidity

A Current Ratio of 1.15 indicates that CVX should not have too much problems paying its short term obligations.
CVX has a Current ratio of 1.15. This is comparable to the rest of the industry: CVX outperforms 50.24% of its industry peers.
A Quick Ratio of 0.86 indicates that CVX may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, CVX perfoms like the industry average, outperforming 43.96% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.15
Quick Ratio	0.86

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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

CVX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.16%.
The earnings per share for CVX have been decreasing by -27.02% on average. This is quite bad

EPS 1Y (TTM)-27.16%

EPS 3Y-27.02%

EPS 5YN/A

EPS Q2Q%-26.21%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%-10.25%

3.2 Future

CVX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.59% yearly.
The Revenue is expected to decrease by -1.17% on average over the next years.

EPS Next Y-1.42%

EPS Next 2Y15.76%

EPS Next 3Y16.81%

EPS Next 5Y13.59%

Revenue Next Year-0.18%

Revenue Next 2Y2.88%

Revenue Next 3Y-0.7%

Revenue Next 5Y-1.17%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.17 indicates a rather expensive valuation of CVX.
The rest of the industry has a similar Price/Earnings ratio as CVX.
CVX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.32.
Based on the Price/Forward Earnings ratio of 24.51, the valuation of CVX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CVX is on the same level as its industry peers.
CVX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	24.17
Fwd PE	24.51

4.2 Price Multiples

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

		Industry Rank	Sector Rank
P/FCF	23.09
EV/EBITDA	9.88

4.3 Compensation for Growth

A more expensive valuation may be justified as CVX's earnings are expected to grow with 16.81% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y15.76%

EPS Next 3Y16.81%

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5. Dividend

5.1 Amount

CVX has a Yearly Dividend Yield of 4.00%.
CVX's Dividend Yield is a higher than the industry average which is at 3.64.
CVX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	4%

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

5.3 Sustainability

95.82% of the earnings are spent on dividend by CVX. This is not a sustainable payout ratio.
The dividend of CVX is growing, but earnings are growing more, so the dividend growth is sustainable.

DP95.82%

EPS Next 2Y15.76%

EPS Next 3Y16.81%

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CHEVRON CORP / CVX FAQ

What is the fundamental rating for CVX stock?

ChartMill assigns a fundamental rating of 4 / 10 to CVX.

What is the valuation status for CVX stock?

ChartMill assigns a valuation rating of 2 / 10 to CHEVRON CORP (CVX). This can be considered as Overvalued.

What is the profitability of CVX stock?

CHEVRON CORP (CVX) has a profitability rating of 5 / 10.

What is the expected EPS growth for CHEVRON CORP (CVX) stock?

The Earnings per Share (EPS) of CHEVRON CORP (CVX) is expected to decline by -1.42% in the next year.

Is the dividend of CHEVRON CORP sustainable?

The dividend rating of CHEVRON CORP (CVX) is 7 / 10 and the dividend payout ratio is 95.82%.