NYSE:CVX

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 17.6% below its fair value

Earnings are forecast to grow 22.18% per year

Pays a high and reliable dividend of 4.69%

Risk Analysis

Dividend of 4.69% is not well covered by earnings

Profit margins (2.1%) are lower than last year (9.3%)



Snowflake Analysis

Established dividend payer with moderate growth potential.


Similar Companies

Saudi Arabian Oil

SASE:2222

Share Price & News

How has Chevron's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CVX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

CVX

0.4%

US Oil and Gas

1.5%

US Market


1 Year Return

-7.8%

CVX

-18.7%

US Oil and Gas

20.1%

US Market

Return vs Industry: CVX exceeded the US Oil and Gas industry which returned -18.7% over the past year.

Return vs Market: CVX underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CVXIndustryMarket
7 Day1.0%0.4%1.5%
30 Day-4.8%-9.4%1.4%
90 Day-7.1%-5.9%8.7%
1 Year-3.9%-7.8%-15.5%-18.7%22.7%20.1%
3 Year12.4%-0.2%-13.0%-21.2%50.1%40.5%
5 Year24.6%1.4%-21.9%-33.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Chevron's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chevron undervalued compared to its fair value and its price relative to the market?

17.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVX ($110.08) is trading below our estimate of fair value ($133.52)

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


Price To Earnings Ratio

PE vs Industry: CVX is poor value based on its PE Ratio (70.9x) compared to the Oil and Gas industry average (9x).

PE vs Market: CVX is poor value based on its PE Ratio (70.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CVX is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: CVX is overvalued based on its PB Ratio (1.3x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Chevron forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVX's forecast earnings growth (22.2% per year) is above the savings rate (1.7%).

Earnings vs Market: CVX's earnings (22.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CVX's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CVX's revenue (3.9% per year) is forecast to grow slower than 20% 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 (10.5%).


Next Steps

Past Performance

How has Chevron performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVX has high quality earnings.

Growing Profit Margin: CVX's current net profit margins (2.1%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: CVX's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: CVX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CVX had negative earnings growth (-80.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-9%).


Return on Equity

High ROE: CVX's Return on Equity (1.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chevron's financial position?


Financial Position Analysis

Short Term Liabilities: CVX's short term assets ($34.0B) exceed its short term liabilities ($30.2B).

Long Term Liabilities: CVX's short term assets ($34.0B) do not cover its long term liabilities ($69.4B).


Debt to Equity History and Analysis

Debt Level: CVX's debt to equity ratio (20.8%) is considered satisfactory.

Reducing Debt: CVX's debt to equity ratio has increased from 17.8% to 20.8% over the past 5 years.

Debt Coverage: CVX's debt is well covered by operating cash flow (83.8%).

Interest Coverage: Insufficient data to determine if CVX's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: CVX has a high level of physical assets or inventory.

Debt Coverage by Assets: CVX's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

4.69%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: CVX's dividend (4.69%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CVX's dividend (4.69%) is in the top 25% of dividend payers in the US market (3.69%)


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.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (306.5%), CVX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVX's dividends in 3 years are forecast to be covered by earnings (72% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Mike Wirth (58yo)

2yrs

Tenure

US$20,640,623

Compensation

Mr. Michael K. Wirth, also known as Mike, serves as an Executive Vice President of Chevron Global Downstream LLC. Mr. Wirth has been Chairman and Chief Executive Officer of Chevron Corporation since Februa ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD20.64M) is above average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Wirth
Chairman & CEO2yrsUS$20.64m0.0017% $3.5m
Pierre Breber
VP & CFO0.8yrsUS$8.03m0.0021% $4.3m
Joseph Geagea
Executive Vice President of Technology4.7yrsUS$7.85m0.0014% $2.9m
James Johnson
Executive Vice President of Upstream6.1yrsUS$10.93m0.00093% $1.9m
R. Pate
VP & General Counsel10.5yrsUS$5.91m0.0012% $2.5m
Rhonda Morris
VP & Chief Human Resources Officer1.1yrsno data0.0019% $4.1m
Mark Nelson
Executive Vice President of Downstream & Chemicals0.9yrsno data0.00078% $1.6m
James Seutloadi
Chairman & GM of Corporate & Government Affairs of Caltex Oil South Africa15.3yrsno datano data
Maria Lindenberg
Chief Procurement Officer7.1yrsno datano data
Jeff Gustavson
Vice President of North America Exploration & Production Mid-Continent Business Unit2yrsno datano data

2.0yrs

Average Tenure

56yo

Average Age

Experienced Management: CVX's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Wirth
Chairman & CEO2yrsUS$20.64m0.0017% $3.5m
James Seutloadi
Chairman & GM of Corporate & Government Affairs of Caltex Oil South Africa15.3yrsno datano data
Ronald Sugar
Lead Director5.1yrsUS$456.58k0.00014% $291.4k
Enrique Hernandez
Independent Director11.2yrsUS$412.35k0.00071% $1.5m
Charles Moorman
Independent Director7.8yrsUS$503.20k0.00034% $707.7k
John Frank
Independent Director2.3yrsUS$442.94k0.000040% $83.3k
Alice Gast
Independent Director7.2yrsUS$418.65k0.00085% $1.8m
Wanda Austin
Independent Director3.2yrsUS$416.01k0.00017% $353.9k
Dambisa Moyo
Independent Non-Executive Director3.3yrsUS$402.57k0.00039% $811.8k
D. Umpleby
Independent Director1.9yrsUS$404.60k0.000030% $62.4k

4.2yrs

Average Tenure

62yo

Average Age

Experienced Board: CVX's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CVX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Chevron Corporation's company bio, 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
  • Market Cap: US$208.147b
  • Shares outstanding: 1.89b
  • Website: https://www.chevron.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 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
CVXBVC (Bolsa de Valores de Colombia)YesCommon StockCOCOPJan 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
CVXBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/8 ORD USD0.75 (USD)ARARSSep 2000
CHVX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1/2 COM USD0.75BRBRLAug 2012

Biography

Chevron Corporation, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production 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. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals, and fuel and lubricant additives, as well as plastics for industrial uses. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:35
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.