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CVX

Chevron NYSE:CVX Stock Report

Last Price

US$143.67

Market Cap

US$281.2b

7D

-0.8%

1Y

37.7%

Updated

02 Oct, 2022

Data

Company Financials +
CVX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends5/6

CVX Stock Overview

Chevron Corporation, through its subsidiaries, engages in integrated energy and chemicals operations worldwide.

Chevron Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chevron
Historical stock prices
Current Share PriceUS$143.67
52 Week HighUS$182.40
52 Week LowUS$103.58
Beta1.14
1 Month Change-8.98%
3 Month Change-1.94%
1 Year Change37.71%
3 Year Change26.19%
5 Year Change22.76%
Change since IPO731.36%

Recent News & Updates

Sep 26

Chevron join hands with MOECO on advanced geothermal technology

Chevron New Energies International (NYSE:CVX) and Mitsui Oil Exploration (MOECO) have signed a joint collaboration pact to explore the technical and commercial feasibility of advanced geothermal power generation in Japan. The pact could help unlock Japan’s significant geothermal potential. The new collaboration will study geothermal resource potential across Japan and will evaluate the effectiveness of Advanced Closed Loop technology for a future joint pilot project in Japan.

Sep 22
Quick Takes: Palo Alto, Alphabet, Meta & More

Quick Takes: Palo Alto, Alphabet, Meta & More

Vladimr Putin’s latest mobilization caused the oil price to spike yesterday morning. Somewhat predictably, energy stocks opened higher, - but then very quickly reversed course, along with the price of crude, when it emerged that US inventories increased by 1.1 million barrels from a week earlier. Exxon (NYSE: XOM), Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY) all closed lower on the day.

Sep 20

Yield To The Fed Rate Hike: 3 Dividend Stocks To Fight Inflation

Summary The Fed is like a box of chocolates. You never know what you're going to get. Red hot inflation, recession fear, and negative market sentiment emphasized last week by FedEx have many investors seeking high-yielding dividend stocks to hedge against and battle losses. This article highlights three dividend-paying stocks with excellent fundamentals, amazing profitability, and strong dividend safety grades. The four-year average yield on each stock pick is over 4%. Although each of the three stocks experienced some declines this year, they have fared well overall. Like most equities with high yields, they can be risky while offering a good opportunity to buy when markets fall. September Federal Reserve Meeting ((FOMC)) Investors are on the prowl for investments that offer income, as portfolios have taken a hit in this volatile market environment, with no end in sight. And while not all high-yield stocks are created equal, by and large, the backdrop of the upcoming Fed meeting supports a 75- to 100-basis point hike, which bodes well for dividend-paying stocks. However, should the Fed surprise by presenting a less than 75-basis point hike, growth stocks will likely take off. Major Indexes One-Week Decline Ending 9/16/22 Major Indexes One-Week Decline Ending 9/16/22 (FactSet via WSJ) But the fight against inflation persists, as the major markets tanked last week on FedEx’s ominous warning of a potential global recession. FedEx sank 21% following its Q4 earnings miss, resulting in analysts downgrading the stock. In addition, several industries, not just air freight and logistics, have felt the heat that resulted in the Nasdaq -5.5% last week, followed by the Dow Jones -4.1% and the S&P 500 -4.8%, similar declines for the week ending September 16th. But the fight against inflation persists, as the major markets tanked on FedEx’s ominous warning of a potential global recession. "Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, Q1 results are below our expectations," said FedEx CEO Raj Subramaniam. Uncertainty continues to move the markets, although the Fed drove home the message in Jackson Hole that it plans to raise rates, prompting Fed Funds futures to reprice terminal rates near 4.4% by April 2023. Fed Funds Rates Chart (Bloomberg Finance L.P. ) And while the markets may or may not believe that the Fed will be aggressive enough in tightening for the September 20-21 FOMC meeting, as written by Mott Capital Management: The market agrees that rates need to go higher, [but] it still believes the Fed will be cutting rates by around 40 bps by the end of next year. The spread between the April 2023 Fed Fund futures and December 2023 contracts on August 25 was 32 bps. The current spread suggests the market believes the Fed may be more aggressive in cutting rates next year. Globally, central banks have been behind the curve, and the U.S. Fed’s inflation battle has investors uncertain about the future. Turning to high-yielding dividend stocks with Strong Buy ratings can make for an excellent portfolio rescue in either a rallying or down market. My three stock picks are fundamentally strong, with solid earnings projections and forward yields above 2.40%, and a four-year average yield above 4%, making a case for an investment rescue option. 3 Dividend Stocks with High Yields to Invest In Underwhelming wage growth coupled with astronomical “sticky” costs of living – food, healthcare, and shelter, to name a few – spell bad news for many, who are struggling to make ends meet and keep up with the increases that have seen some of the biggest jumps since 1979. As the Fed moves to temper costs, this could spell trouble for some stocks while proving favorable for others. Budgeting in today’s market is crucial because every dollar counts. Building a portfolio with passive income-generating stocks like LSI, MPC, and CVX offers an opportunity to hedge against potential downturns. I’ve said many times that not all dividend stocks are created equal, and it's crucial to consider a stock’s fundamentals when picking high-yield stocks. These stocks have strong financials and excellent overall Quant Ratings & Factor Grades that complement their high yields. 1. Life Storage, Inc. (LSI) Market Capitalization: $10.04B Dividend Safety Grade: B Forward Dividend Yield: 3.67% Quant Rating: Strong Buy Ranked second in its industry and eighth out of 179 in its sector, Life Storage, Inc. (LSI) is an adjusted income self-storage REIT serving residential and commercial customers. LSI units offer a great income stream to offset the rising cost of inflation. Its business model provides an excellent solution using monthly re-pricing, whereby costs are passed onto customers, and rates adjust upwards quickly to offer more recession resilience than many other sectors. With stellar growth and dividends, the self-storage niche offers many advantages. LSI is geographically diversified throughout the United States and Canada, with more than 1,000 locations. LSI offers low capital and operational expenses, increasing cash flows, and wide operating margins. In the current environment, self-storage REITs offer great inflation hedges with excellent yields. E-commerce is driving the need for storage facilities to house the tech industry’s servers and supplies that have built up due to labor shortages that have prevented the dissemination of products. Although the stock's forward P/FFO of 19.76x comes at a premium, its overall valuation grade is a C-. Given the popularity of warehouses that are seeing higher income potential than other real estate offerings due to the size of warehouse space and minimal overhead, Life Storage has a growth advantage over many other REITs, making it attractive for investment. LSI Valuation and Growth LSI is a strong buy based on our quant ratings and given the collective characteristics of growth, profitability, momentum, and earnings. Despite the stock’s -20% YTD price performance, as fellow Seeking Alpha Marketplace author Philip Eric Jones writes: The YTD sell-off in LSI shares appears to have little or nothing to do with the company itself, and much more to do with the huge rotation from growth to value. This company appears to be bristling with good health. Jones not only named LSI the best Storage REIT in December and again as one of his top 12 REITs for the next 12 months, but I also wrote about LSI in April pieced titled 3 Best REITs to Buy to Fight Inflation. Despite the stock being downgraded given market volatility and looking into historical cycles back to 1994, Wall Street and our quant ratings maintain the buy ratings. LSI has maintained consistent top-and bottom-line earnings beats, with the most recent leading to an A revision grade and four FY1 Up revisions within the last 90 days. 2022 Q2 FFO of $1.65 beat by $0.12, and revenue of $257.05M beat by $13.63M (+37.3% Y/Y). Maintaining its average occupancy of 94%, 21 consecutive months of positive rent roll-ups, and the acquisition of 13 wholly owned stores and 17 third-party managed stores, it’s no wonder LSI increased its quarterly dividend by 8%, a 46% increase from the previous year. LSI Stock EPS & Revisions (Seeking Alpha Premium) Given the company’s healthy balance sheet, we foresee the company taking advantage of the high inflationary environment by continuing to showcase solid earnings growth, prompting this REIT to gain in popularity. LSI Dividend Scorecard LSI Dividend Scorecard (Seeking Alpha Premium) LSI has a solid dividend scorecard, offering a B dividend safety rating, the company’s ability to continue paying a current dividend. Life Storage has a strong 3.67% forward dividend yield and has paid a dividend for 25 consecutive years, offering an 8.67% five-year growth rate. “We have remained focused on strategic growth, enabling us to grow our wholly-owned portfolio close to 18% from 1 year ago. These acquisitions represent properties in top markets, including Sunbelt markets such as Florida, California, Texas, and Georgia. Slightly over 75% of what we closed year-to-date are stabilized properties, while the remaining 25% are lease-up properties that will provide strong upside in future years. Looking forward, our current acquisition pipeline remained strong with an additional $258 million under contract,” said Joe Saffire, LSI Director & CEO. Historically, REITs and real estate stocks tend to benefit from inflation, proving to be a valuable asset for portfolios, as showcased by the recent rent hikes linked to CPI. Offering higher dividend yields and growth with potential valuation appreciation, LSI not only offers a favorable outlook but a strategic pipeline, as outlined by LSI CEO above. I believe this stock is ripe for the picking and an excellent option to fight inflation, along with my next two energy picks. 2. Marathon Petroleum Corporation (MPC) Market Capitalization: $47.69B Dividend Safety Grade: A- Forward Dividend Yield: 2.43% Quant Rating: Strong Buy On a longer-term bullish uptrend, oil and gas refining company Marathon Petroleum Corporation (MPC) and its subsidiaries are a top-ranking energy company focusing on integrated segments and a geographically diverse footprint in the midcontinent, Gulf, and West Coast of the U.S. The energy sector (XLE +35%YTD) has been full steam ahead since the pandemic, with Marathon capitalizing on rising prices, increasing profits, and cutting costs, which have proven fruitful with more than $1B in operating expense reductions meanwhile crushing its Q2 earnings. MPC Stock Growth & Profitability With a nearly $12B cash hoard, strong financials, and a favorable outlook, it's no surprise that MPC’s margins continue to soar in Q2. The strong market, despite some softening, has enabled energy companies like MPC to reduce debt to pre-pandemic levels while capitalizing on crude oil streams.

Sep 12

The 'OPEC Put': Buy Chevron And Occidental's Dip With Buffett

Summary OPEC’s output cut on September 5th is the first time that cuts have been made when oil prices were $80-$90. This may evolve into an “OPEC put” supporting oil prices, akin to the famed “Fed put” in equities. Oil futures are currently pricing in $60/barrel long term, which are also broadly used in equity valuation models. At $60/barrel and assuming no additional growth beyond Management forecasted improvements to FY26, Chevron and Occidental are fairly valued at current prices and any further upside is not reflected. Given Berkshire’s average purchase price is just c.20% below current market prices, the dip in oil stocks in the week of September 5th– 9th is probably a good time to buy. OPEC cut oil output quotas in its meeting on September 5th. Since then, oil prices have reportedly fallen from intensified recessionary worries, but there was a strong rally on September 9th (Friday), which erased most of the losses. In this article, I will first cover why the symbolic output cut is of great significance to oil prices and more importantly to Chevron (NYSE:CVX) and Occidental Petroleum (NYSE:OXY), two oil stocks that Berkshire Hathaway (BRK.A) (BRK.B) has bought a lot of at prices not much lower than current market prices. Part I: Rise of the "OPEC Put": The historic significance of recent OPEC output cuts This represents the first time in history that OPEC has cut oil output when prices are at such high levels. The chart below shows OPEC's output cuts historically. We can see they have all occurred when prices were relatively low. This is the first time OPEC has cut output, even symbolically, at such high prices. OPEC cuts compared with oil prices As discussed previously, OPEC+ may be shifting to a strategy of maximizing profits as oil producers worry about future demand uncertainty and are less willing to invest in capacity expansion: Historical OPEC output (macrotrends.net + public info) Note: the above boxes indicate rough period when output cuts started, they do not illustrate the exact end time. By cutting output, OPEC+ has made good on its threat to cut output anytime. Saudi Arabia has also solidified its control over OPEC+ with the price wars of 2020, which showed everyone it is unafraid to flood the market to negative prices. This had the added benefit of pushing independent shale out of the market (into the hands of other big corporations that are also like-minded to "rationalize" production). The success (from OPEC+ perspective) of this strategy has probably bolstered Saudi's position in the group so the others are more willing to follow. This practice differs greatly from the past where OPEC cut output when prices were very low, and did not want oil prices to be so high that there would be demand destruction. Well, there is demand destruction now from the highly anticipated growth in renewables and electric vehicles. Whether or not electric vehicles actually do work out (e.g. many have pointed out concerns such as the lack of materials to make EVs) or not is a separate question, but right now this poses a credible enough threat to future demand forecasts, so this decreases the incentive of oil producers to increase production. What are the implications of OPEC shifting to a profit maximization strategy? In the short run, this may make little difference, as many analysts point out, OPEC+'s current production level is below the output guidance anyway, so short term supply/demand dynamics have larger influence on short term oil prices. But I believe it is wrong to underestimate the symbolic nature behind this move. This may signal the rise of the "OPEC put", as OPEC rushes to verbally intervene when oil prices just soften slightly, akin to the hallowed "Fed put" in the equities market, where the Fed used to verbally reassure stock markets whenever there was a correction (that is before the current bout of monetary tightening in 2022). Given that OPEC+ exports 60-70% of the world's tradeable oil and that many oil majors are forecasting small if not nil production growth in the next five years, if OPEC+ has a "whatever it takes" attitude to maintaining high prices, there are good chances it will succeed. It may lead to significant higher prices for oil than the market are currently pricing in, as shown below, the WTIC futures price curve ranges to from about $87 for October to low $65 by 2026 and all the way to $57 by 2029 and after (Oddly enough, the 3 years future prices was c.$60 during the depths of the coronavirus pandemic as well). OPEC appears to be aiming higher, as they are floating and enacting these cuts at $90. If the market is currently pricing in such oil prices (and stocks of oil companies at these oil prices), then if OPEC+ succeeds to continuously manage oil prices higher, then this could mean significantly upside for shareholders of oil stocks. WTIC oil futures price curve (Public info) Part II: Implication of the OPEC put on CVX and OXY If the OPEC cut is able to keep oil prices at $80-$90 for the next 5 years and perhaps longer, specifically speaking how does this impact Chevron and Occidental? I will analyze these two in detail as they have Berkshire's stamp of approval. I will focus my analysis on the upstream oil business as: (i) the "OPEC put" will mostly impact the sale price of oil, rather than natural gas prices and refinery margins, and (ii) the upstream oil business accounts for the majority of the free cashflow (FCF) generated. Market Consensus Currently the market consensus is heavily discounting the upside, as consensus EPS estimates forecast EPS to drop off sharply in line with strip oil prices (i.e. somewhere along $60 for long term oil prices). Given future capex guidance by these companies are relatively stable, the estimated EPS change magnitude is indicative of estimated FCF, whereby Occidental would see decline c.75% in 2026 compared to 2022 levels (FCF to equity holders will decline at a less rate as Occidental pays down its debts in the next few years). With such consensus forecasts, it is understandable why many question whether Occidental and Chevron are a great buy. Consensus Estimated EPS per share $/share 2022 2023 2024 2025 2026 Chevron 19.01 16.72 13.83 11.17 9.62 Occidental 10.77 8.44 6.04 2.73 2.45 Source: Seeking Alpha I have done an illustrative high level summary comparison of Chevron and Occidental below, before we do a deep dive into each Company and this will be used as a reference below when discussing each Company. Illustrative Comparison of EVs and FCF USD billions except oil prices which are in $/barrel FY21 avg realized oil prices ($/barrel) H1-FY22 avg realized oil prices($/barrel) H1-FY22 Operating cashflow FY22 forecast capex FY22F free cashflow Market cap Debt (including borrowings, preferred shares (if any), asset retirement and other debt-like obligations) EV A B C=2*A-B (rounded down) D E F=D+E Chevron (CVX) $65 $97.74* 21.8 15.3 28 313 45 358 Occidental (OXY) $66 $100.10 10.4 4 16 61 37 100 Source: public filings *For Chevron, average realized oil prices shows international $97.74/barrel rather than the US ($82/barrel which seems low, due to a mix change - a higher proportion of liquids sales is "natural gas liquids"). ** I include a broader definition of debt includes borrowings, preferred shares (if any), asset retirement and other debt-like obligations to be safe. Chevron The below will use data from Chevron's annual report, investor presentation slides (link), conference calls etc. From 2022-2026: At $75/barrel Brent prices, Chevron sees c.$200bn cashflow from operations, and after taking out roughly $75bn in cash capex, this leaves about $120bn (give or take a few billion) FCF for buybacks and dividends; At $50/barrel, this would be FCF of $75bn. Chevron 2022-2026 5 year cumulative FCF (Investor presentation) This is roughly consistent with Management's estimated sensitivity per $1 change in Brent oil price, which is $400 million in after-tax earnings (roughly equal to FCF), extrapolated across a spectrum of $50-$100/barrel shown below: Chevron 2022-2026 5 year cumulative FCF sensitivity to oil prices Brent oil price per barrel ($/barrel) 50 60 75 90 100 5 year cumulative FCF ($bn) 75 90 120 150 170 Source: Author's calculations based on Company disclosed information and certain assumptions outlaid above Note: the above extrapolation is based on sensitivities based on Company provided inputs and are just for illustrative purposes rather than representing Management's view. Management projects a 10% CAGR increase in CFFO (cashflow from operations) from FY21 levels up until 2026. FY21's CFFO was $29bn, so there is about $17.7bn of improvement. By FY26, CFFO would be $46.7bn, minus $16bn in midpoint capex guidance, would be c.$30bn in FCF. Given FY21 average realized prices was $65/barrel, subtract $2 billion to normalize it to $60/barrel, which would give $28bn annually in FCF at $60/barrel. Chevron 2026 single year FCF sensitivity to oil prices Brent oil price per barrel ($/barrel) 50 60 75 90 100 FCF ($bn) 24 28 34 40 44

Sep 11
A Look At The Fair Value Of Chevron Corporation (NYSE:CVX)

A Look At The Fair Value Of Chevron Corporation (NYSE:CVX)

Does the September share price for Chevron Corporation ( NYSE:CVX ) reflect what it's really worth? Today, we will...

Sep 01

Chevron: Expect An Uphill Struggle From Here

Summary CVX's momentum has stalled after its Q2 earnings release, as the market turned its focus back to growth fears. Our analysis suggests that Chevron's underlying growth cadence could decelerate, putting further pressure on CVX's upward momentum. WTI crude and natural gas futures have also been struggling for buying momentum, despite the energy crisis in Europe, coupled with the current supply/demand imbalance. As a result, we believe CVX's outperformance potential could be impacted by the market's indecisiveness, coupled with more challenging comps. Accordingly, we reiterate our Sell rating. Thesis Chevron Corporation's (CVX) stock recovered remarkably from its July lows as it headed into its Q2 earnings release. However, its buying momentum has since stalled, despite posting a performance that easily beat the Street's consensus. Furthermore, we noted that the CVX appears to have formed another ominous bull trap (indicating that the market denied further buying upside decisively) this week, in line with the weakness seen in WTI crude oil futures (CL1:COM). Chevron remains committed to its debt reduction plan, dividend payout, and stock repurchase guidance, which should spur investor confidence. However, given its outperformance from 2021, we urge investors to be wary about expecting continued outperformance as its comps become more challenging. Therefore, given decelerating underlying growth metrics, we postulate that CVX could find it very challenging to breach its June highs as WTI crude continues to struggle for buying momentum. In addition, while the recent outperformance from natural gas has been instrumental, we believe Henry Hub natural gas futures (NG1:COM) are configured for a steeper decline after the current distribution phase. Therefore, the dynamics in the underlying market could add to the comp headwinds facing Chevron, putting further pressure on sustaining its bullish bias. Accordingly, we reiterate our Sell rating in CVX and urge investors to leverage July's rally to cut exposure and rotate. Chevron's Growth Rates Are Unsustainable Chevron revenue by segment change % (S&P Cap IQ) Chevron posted another solid quarter in Q2, as downstream revenue (76% revenue share) surged 86% YoY, up from Q1's 75% uptick. However, its growth has clearly slowed from the peak metrics in early 2021. Furthermore, the growth in its critical upstream segment has also slowed discernibly, as it posted revenue growth of 66% in Q2, up from Q1's 52%. Notwithstanding, it was also down markedly from the highs in FY21, as Chevron faced tougher comps. Given the recent struggles in the underlying market, we postulate that the company could continue to face challenges to maintain its growth cadence. Chevron revenue change % and adjusted EBIT margins % consensus estimates (S&P Cap IQ) Even the bullish consensus estimates indicate that Chevron's revenue growth should moderate through FY23. Therefore, it's also likely to impact its operating leverage, as Chevron's adjusted EBIT margins are also expected to fall. As a result, we believe it's increasingly difficult for CVX to maintain its buying upside if the underlying metrics face pressure. Notwithstanding, we believe it's unlikely for Chevron's underlying model to revert to pre-COVID days in the near- to medium-term, given the current supply/demand dynamics. Therefore, it should help undergird its profitability profile, supporting its valuation. However, we urge investors to consider the potential for further upside surprises that could lift CVX's momentum further. WTI crude's momentum has continued to struggle despite recent hawkish comments by Saudi Arabia, which led to an initial rally. However, August gains have already been digested, as the market returned to its focus on growth fears that could further weaken retail and industrial demand.

Shareholder Returns

CVXUS Oil and GasUS Market
7D-0.8%2.2%-2.5%
1Y37.7%32.0%-23.2%

Return vs Industry: CVX exceeded the US Oil and Gas industry which returned 32% over the past year.

Return vs Market: CVX exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is CVX's price volatile compared to industry and market?
CVX volatility
CVX Average Weekly Movement4.8%
Oil and Gas Industry Average Movement8.0%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: CVX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CVX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187942,595Mike Wirthhttps://www.chevron.com

Chevron Corporation, through its subsidiaries, engages in integrated energy and chemicals operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant.

Chevron Fundamentals Summary

How do Chevron's earnings and revenue compare to its market cap?
CVX fundamental statistics
Market CapUS$281.22b
Earnings (TTM)US$29.05b
Revenue (TTM)US$206.10b

9.7x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVX income statement (TTM)
RevenueUS$206.10b
Cost of RevenueUS$123.83b
Gross ProfitUS$82.27b
Other ExpensesUS$53.23b
EarningsUS$29.05b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)14.84
Gross Margin39.92%
Net Profit Margin14.09%
Debt/Equity Ratio17.0%

How did CVX perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

37%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CVX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CVX?

Other financial metrics that can be useful for relative valuation.

CVX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA6.3x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

How does CVX's PE Ratio compare to its peers?

CVX PE Ratio vs Peers
The above table shows the PE ratio for CVX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.7x
XOM Exxon Mobil
9.3x-18.3%US$363.9b
OXY Occidental Petroleum
5.6x-46.7%US$57.1b
COP ConocoPhillips
8.2x-22.4%US$130.3b
EOG EOG Resources
11.5x-7.5%US$65.5b
CVX Chevron
9.7x-20.1%US$281.2b

Price-To-Earnings vs Peers: CVX is expensive based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (8.7x).


Price to Earnings Ratio vs Industry

How does CVX's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: CVX is expensive based on its Price-To-Earnings Ratio (9.7x) compared to the US Oil and Gas industry average (8.8x)


Price to Earnings Ratio vs Fair Ratio

What is CVX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CVX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.7x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: CVX is good value based on its Price-To-Earnings Ratio (9.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).


Share Price vs Fair Value

What is the Fair Price of CVX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CVX ($143.67) is trading below our estimate of fair value ($165.24)

Significantly Below Fair Value: CVX is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Chevron forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-20.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVX's earnings are forecast to decline over the next 3 years (-20.1% per year).

Earnings vs Market: CVX's earnings are forecast to decline over the next 3 years (-20.1% per year).

High Growth Earnings: CVX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CVX's revenue is expected to decline over the next 3 years (-12.1% per year).

High Growth Revenue: CVX's revenue is forecast to decline over the next 3 years (-12.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVX's Return on Equity is forecast to be low in 3 years time (12.9%).


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Past Performance

How has Chevron performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


1.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CVX has high quality earnings.

Growing Profit Margin: CVX's current net profit margins (14.1%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: CVX's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: CVX's earnings growth over the past year (709.8%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: CVX earnings growth over the past year (709.8%) exceeded the Oil and Gas industry 184.6%.


Return on Equity

High ROE: CVX's Return on Equity (18.9%) is considered low.


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Financial Health

How is Chevron's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CVX's short term assets ($51.2B) exceed its short term liabilities ($39.1B).

Long Term Liabilities: CVX's short term assets ($51.2B) do not cover its long term liabilities ($64.3B).


Debt to Equity History and Analysis

Debt Level: CVX's net debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: CVX's debt to equity ratio has reduced from 29% to 17% over the past 5 years.

Debt Coverage: CVX's debt is well covered by operating cash flow (152%).

Interest Coverage: CVX's interest payments on its debt are well covered by EBIT (52.5x coverage).


Balance Sheet


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Dividend

What is Chevron current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.95%

Current Dividend Yield

Dividend Yield vs Market

Chevron Dividend Yield vs Market
How does Chevron dividend yield compare to the market?
SegmentDividend Yield
Company (Chevron)4.0%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Oil and Gas)5.0%
Analyst forecast in 3 Years (Chevron)4.2%

Notable Dividend: CVX's dividend (3.95%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: CVX's dividend (3.95%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: CVX's dividends per share have been stable in the past 10 years.

Growing Dividend: CVX's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.7%), CVX's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.8%), CVX's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Mike Wirth (61 yo)

5.67yrs

Tenure

US$22,610,285

Compensation

Mr. Michael K. Wirth, also known as Mike, has been Chairman and Chief Executive Officer of Chevron Corporation since February 01, 2018. He is a Director at Chevron Corporation since February 1, 2017. He se...


CEO Compensation Analysis

Mike Wirth's Compensation vs Chevron Earnings
How has Mike Wirth's remuneration changed compared to Chevron's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$29b

Mar 31 2022n/an/a

US$21b

Dec 31 2021US$23mUS$2m

US$16b

Sep 30 2021n/an/a

US$10b

Jun 30 2021n/an/a

US$4b

Mar 31 2021n/an/a

-US$8b

Dec 31 2020US$29mUS$2m

-US$6b

Sep 30 2020n/an/a

-US$11b

Jun 30 2020n/an/a

-US$9b

Mar 31 2020n/an/a

US$4b

Dec 31 2019US$33mUS$2m

US$3b

Sep 30 2019n/an/a

US$13b

Jun 30 2019n/an/a

US$15b

Mar 31 2019n/an/a

US$14b

Dec 31 2018US$21mUS$1m

US$15b

Sep 30 2018n/an/a

US$14b

Jun 30 2018n/an/a

US$12b

Mar 31 2018n/an/a

US$10b

Dec 31 2017US$12mUS$1m

US$9b

Sep 30 2017n/an/a

US$6b

Jun 30 2017n/an/a

US$6b

Mar 31 2017n/an/a

US$3b

Dec 31 2016US$9mUS$1m

-US$497m

Sep 30 2016n/an/a

-US$1b

Jun 30 2016n/an/a

-US$746m

Mar 31 2016n/an/a

US$1b

Dec 31 2015US$8mUS$1m

US$5b

Compensation vs Market: Mike's total compensation ($USD22.61M) is above average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CVX's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: CVX's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:CVX Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
06 May 22SellUS$80,883Eimear BonnerIndividual478US$169.21
04 May 22SellUS$1,302,502Enrique HernandezIndividual7,923US$164.40

Ownership Breakdown

What is the ownership structure of CVX?
Owner TypeNumber of SharesOwnership Percentage
Private Companies117,9440.006%
Individual Insiders810,4200.04%
State or Government850,4670.04%
Public Companies161,440,1498.2%
General Public562,080,09328.7%
Institutions1,232,135,74162.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 49.63% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.37%
The Vanguard Group, Inc.
163,915,625$23.5b-2.3%0.56%
8.25%
Berkshire Hathaway Inc.
161,440,149$23.2b1.42%no data
7.01%
State Street Global Advisors, Inc.
137,216,495$19.7b-0.5%1.12%
6.99%
BlackRock, Inc.
136,748,274$19.6b7.26%0.5%
2.76%
Capital Research and Management Company
54,065,066$7.8b-10.65%0.55%
1.79%
Geode Capital Management, LLC
34,961,798$5.0b5.63%0.67%
1.35%
Norges Bank Investment Management
26,515,497$3.8b0%0.53%
1.29%
Northern Trust Global Investments
25,219,717$3.6b1.49%0.76%
1.08%
Morgan Stanley, Investment Banking and Brokerage Investments
21,094,681$3.0b-0.09%0.62%
1.02%
BNY Mellon Asset Management
20,061,233$2.9b5.79%0.67%
0.94%
Managed Account Advisors LLC
18,319,208$2.6b-3.23%0.76%
0.84%
J.P. Morgan Asset Management, Inc.
16,453,681$2.4b-6.03%0.45%
0.78%
Columbia Management Investment Advisers, LLC
15,175,078$2.2b-0.88%0.66%
0.74%
Charles Schwab Investment Management, Inc.
14,463,261$2.1b-1.7%0.57%
0.69%
Legal & General Investment Management Limited
13,569,692$1.9b16.27%0.6%
0.68%
State Farm Insurance Companies, Asset Management Arm
13,334,215$1.9b0%2.24%
0.68%
Franklin Resources, Inc.
13,221,305$1.9b-0.66%0.83%
0.67%
UBS Asset Management
13,101,750$1.9b-8.67%0.37%
0.62%
Wells Fargo & Company, Securities and Brokerage Investments
12,077,367$1.7b-2.85%0.78%
0.57%
Dimensional Fund Advisors LP
11,204,910$1.6b14.77%0.41%
0.57%
Invesco Ltd.
11,160,548$1.6b1.5%0.56%
0.51%
Eaton Vance Management
10,037,607$1.4b7.74%0.56%
0.5%
FMR LLC
9,737,775$1.4b77.08%0.13%
0.5%
Bank of America Corporation, Asset Management Arm
9,709,994$1.4b1.68%0.57%
0.44%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
8,628,801$1.2b1.54%0.43%

Company Information

Chevron Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Chevron Corporation
  • Ticker: CVX
  • Exchange: NYSE
  • Founded: 1879
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Implied Market Cap: US$281.225b
  • Shares outstanding: 1.96b
  • Website: https://www.chevron.com

Number of Employees


Location

  • Chevron Corporation
  • 6001 Bollinger Canyon Road
  • San Ramon
  • California
  • 94583-2324
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
1281709BRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1968
CVX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
CHVDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
CVXSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
CHVXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
CVXSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
CVX-UETLX (Eurotlx)YesCommon StockITEURJan 1968
0R2QLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
CVXWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
CHTEXENXTBR (Euronext Brussels)YesCommon StockBEUSDJan 1968
CVXCLSNSE (Santiago Stock Exchange)YesCommon StockCLCLPJan 1968
CVXBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/8 ORD USD0.75 (USD)ARARSSep 2000
CVXDBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/8 ORD USD0.75 (USD)ARUSDSep 2000
CHVX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REP 1 COMBRBRLAug 2012

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.