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CVX

Chevron NYSE:CVX Stock Report

Last Price

US$155.41

Market Cap

US$304.2b

7D

-2.3%

1Y

52.2%

Updated

09 Aug, 2022

Data

Company Financials +
CVX fundamental analysis
Snowflake Score
Valuation2/6
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$155.41
52 Week HighUS$182.40
52 Week LowUS$92.86
Beta1.15
1 Month Change8.85%
3 Month Change-4.75%
1 Year Change52.24%
3 Year Change26.98%
5 Year Change43.14%
Change since IPO799.30%

Recent News & Updates

Aug 01
We Ran A Stock Scan For Earnings Growth And Chevron (NYSE:CVX) Passed With Ease

We Ran A Stock Scan For Earnings Growth And Chevron (NYSE:CVX) Passed With Ease

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Jul 27

Chevron: Best Of Breed

Chevron is set to grow production to 3.5+ million boe/d by 2026, an increase of ~400,000 boe/d as compared to the 3.1 million boe/d expected this year. Most of that growth will come from Chevron's legacy no- or low-royalty tier-1 position in the Permian Basin and from Tengiz expansion projects in Kazakhstan. Longer term, Chevron has excellent offshore nat-gas growth potential in the Mediterranean Sea due to its acquisition of Noble Energy and the EU's need for new natural gas supply. Chevron is due to release Q2 results this Friday (July 29) before the market open. Over the past 90 days, EPS estimates have risen by over $1 to $5.10/share even as the stock dropped ~10%. Chevron's capital discipline, improved cost efficiencies, and strong asset base have positioned the company as best-of-breed among the international integrated companies. CVX is a BUY. Like many companies in the O&G sector, the stock of Chevron (CVX) has declined about 10% over the past 90-days despite the fact that Q2 consensus earnings estimates have risen sharply (~25%) during that same time frame. Over the years, Chevron has kept a very strong balance sheet. That allowed the company to navigate the COVID-19 crisis much better than most of its peers. Indeed, Chevron is the best performing international integrated oil stock price over the past decade (see graphic below), and dividend growth has been strong as well (currently $5.68/share annually - double the 2010 payout). After all, there was a reason the DJIA kicked Exxon (XOM) out, but kept Chevron in the average. Expect a stellar Q2 report on Friday due to the strength of Chevron's Permian and LNG assets. CVX is generating tons of FCF: $6.1 billion in Q1, or $3.14/share. As a result, investors should expect continued strong shareholders returns going forward. The rally in oil, natural gas, and LNG prices, combined with the recent 10% drop in Chevron's stock price, leads me to upgrade my rating on Chevron from HOLD to BUY. Data by YCharts Investment Thesis Most all investors are well aware of the impact that Putin's horrific war-of-choice on Ukraine and the resulting sanctions placed on Russia by the U.S. and its Democratic and NATO allies have had on global energy markets. Those developments, combined with very disciplined production growth by U.S. shale producers and OPEC have led to very strong pricing for oil, natural gas, and LNG. For a company like Chevron that has a low-cost and low-royalty tier-1 position in the Permian, and strong LNG assets in Australia and Angola, that means soaring profits. As I mentioned in my recent article on ConocoPhillips (COP), Australian LNG prices were very strong in Q2 (see COP: Shifting Focus To LNG): GlobalLNGHub.com On the Q1 conference call, we also got an idea of the strength of Chevron's Angola LNG asset when Chevron CFO Pierre Breber commented: I also pointed out that Angola LNG returned $500 million of capital. That's essentially operating cash. That's a function of operating an LNG facility and selling it into the European gas markets at TTF prices. The graphic below shows TTF pricing during Q2 as compared to Q1: InterContinentalExchange ((ICE)) As you can see, the rally in EU gas continues: The area under the curve in Q2 was greater than it was during a very bullish Q1. Meantime, Chevron is a significant producer of natural gas in the U.S. as well: 1.83 Bcf/d in Q1. That's mostly due to the company's associated gas production in the Permian Basin and from the Gulf-of-Mexico offshore platforms. That being the case, Chevron also is a big beneficiary of the very strong pricing of NYMEX gas: Bloomberg Again, as you can clearly see, NYMEX gas rallied sharply in Q2 as compared to Q1. Earnings In late April, Chevron released a very strong Q1 EPS report - highlights of which are shown below (from Chevron's June Investor Presentation): Chevron June Presentation The company generated $6.1 billion of free cash flow during the quarter ($7 billion excluding working capital). That equates to $3.14/share based on the 1.945 billion fully diluted shares outstanding at the end of the quarter. That obviously bodes well for Chevron shareholders going forward considering the current quarterly dividend is "only" $1.42/share and the total dividend payout in Q1 was only $2.7 billion. Combined with arguably the strongest balance sheet in the industry, that means Chevron has plenty of free cash flow to fund excellent dividend growth, share buybacks, and/or further debt reduction. Looking forward to Q2, and as mentioned earlier, EPS estimates have been rising sharply and currently expect $5.10/share in Q2 earnings - up a whopping 58% sequentially from the very strong $3.22/share earned in Q1: Yahoo Finance However, I do want to mention that Chevron reported on the Q1 conference call that it expects lower production in Q2 due to planned turnarounds at Wheatstone LNG in Australia and Angola LNG. Note also that Chevron CFO Pierre Breber reported: We anticipate a return of capital between $250 million and $350 million from Angola LNG in the second quarter. This cash is reported through cash from investing and not cash from operations. In the first quarter, Angola LNG returned over $500 million of capital. and I also pointed out that Angola LNG returned $500 million of capital. That's essentially operating cash. That's a function of operating an LNG facility and selling it into the European gas markets at TTF prices.

Shareholder Returns

CVXUS Oil and GasUS Market
7D-2.3%-1.9%0.3%
1Y52.2%49.4%-13.5%

Return vs Industry: CVX exceeded the US Oil and Gas industry which returned 49.5% over the past year.

Return vs Market: CVX exceeded the US Market which returned -13% over the past year.

Price Volatility

Is CVX's price volatile compared to industry and market?
CVX volatility
CVX Average Weekly Movement5.4%
Oil and Gas Industry Average Movement8.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

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$304.20b
Earnings (TTM)US$29.05b
Revenue (TTM)US$206.10b

10.5x

P/E Ratio

1.5x

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

3.7%

Current Dividend Yield

37%

Payout Ratio

Does CVX pay a reliable dividends?

See CVX dividend history and benchmarks
When do you need to buy CVX by to receive an upcoming dividend?
Chevron dividend dates
Ex Dividend DateAug 18 2022
Dividend Pay DateSep 12 2022
Days until Ex dividend8 days
Days until Dividend pay date33 days

Does CVX pay a reliable dividends?

See CVX dividend history and benchmarks
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

2/6

Valuation Score 2/6

  • 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/Revenue1.5x
Enterprise Value/EBITDA6.7x
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 Average8.5x
XOM Exxon Mobil
9.7x-17.4%US$377.5b
OXY Occidental Petroleum
5.7x-45.1%US$58.0b
COP ConocoPhillips
7.6x-22.6%US$121.6b
EOG EOG Resources
11.1x-0.8%US$63.4b
CVX Chevron
10.5x-19.8%US$304.2b

Price-To-Earnings vs Peers: CVX is expensive based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (8.5x).


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 (10.5x) compared to the US Oil and Gas industry average (9.4x)


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 Ratio10.5x
Fair PE Ratio14.8x

Price-To-Earnings vs Fair Ratio: CVX is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.8x).


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 ($155.41) is trading below our estimate of fair value ($177.51)

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 less than 20% higher than the current share price.


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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


-19.8%

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 (-19.8% per year).

Earnings vs Market: CVX's earnings are forecast to decline over the next 3 years (-19.8% 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 (-13.3% per year).

High Growth Revenue: CVX's revenue is forecast to decline over the next 3 years (-13.3% 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 (13.3%).


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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 174.3%.


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


3.65%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 10 2022Ex Dividend DateAug 18 2022Dividend Pay DateSep 12 202225 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CVX's dividend (3.65%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: CVX's dividend (3.65%) is low compared to the top 25% of dividend payers in the US market (4.08%).


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?

3.5yrs

Average management tenure


CEO

Mike Wirth (61 yo)

4.5yrs

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

Compensation vs Market: Mike's total compensation ($USD22.61M) is above average for companies of similar size in the US market ($USD12.91M).

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 (3.5 years average tenure).


Board Members

Experienced Board: CVX's board of directors are considered experienced (5.8 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

Ownership Breakdown

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


Top Shareholders

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$304.205b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 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.