10Y annualized return is
positive but below market average
at 2.3% per year
CVX has met or exceeded earnings expectations in
some
recent quarters (6/10)
Attractive PE Ratio
Low Price to Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Low Debt Levels
High Interest Coverage Ratio
Strong Financial Performance
Capital Efficiency and Discipline
Diversified Energy Portfolio
Industry-Leading Free Cash Flow Growth
Strong Growth Pipeline in Multiple Regions
Higher PFCF Ratio
Moderate Net Profit Margin
Liquidity Ratios Indicate Concerns
Market Conditions Affecting Downstream
Overall, Chevron demonstrates strong business quality with solid financial performance and a disciplined approach to capital allocation. Its diversified portfolio, including new energy ventures, positions it well for future growth. However, it faces challenges in the downstream segment due to market pressures.
Analysis Date: January 31, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Chevron Corporation is a big company that works in the energy industry. It finds and produces oil and natural gas, which are important fuels we use every day. Chevron also refines crude oil into products like gasoline and diesel, and sells these fuels to gas stations and other customers. In addition to oil and gas, Chevron is involved in making renewable fuels and chemicals that are used in various products.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
Chevron CEO Mike Wirth said the oil major is not seeing any signs that a recession is imminent. But oil prices at $60 per barrel or lower will impact ...
Chevron CEO Mike Wirth joins 'Squawk Box' to discuss state of the oil market, latest oil price trends, President Trump's tariff policies, impact of po...
CVX and TTE start oil production from the Ballymore project in the Gulf of America, advancing low-carbon, deepwater energy with strong output targets.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$384.08
Current Market Price: $142.49
IV/P Ratio: 2.70x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
63.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for CVX
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (14.36)
P/B ratio ≤ 1.5 (1.67)
Current ratio ≥ 2.0
Long-term debt < Net current assets
Margin of safety (63.0%)
CVX does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
11.24%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
30.82%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
8.95%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
CVX's return on equity stands at 11.24%, which is a strong indicator of the company's ability to generate profits from shareholders' equity.
The gross profit margin of 30.82% reflects efficient production and pricing strategies, contributing positively to the overall profitability.
The net profit margin of 8.95% is decent but suggests there may be room for improvement in cost management to enhance profitability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.16x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
CVX: No data available
CVX's debt to equity ratio of 0.16 and debt to assets ratio of 0.10 are indicative of a strong balance sheet with minimal leverage, reducing financial risk.
An interest coverage ratio of 37.98 indicates that CVX comfortably meets its interest obligations, showcasing financial stability.
With current, quick, and cash ratios all at 0.0, there are significant liquidity concerns that could impact the company's ability to meet short-term obligations.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Chevron reported record production both globally and in the U.S., with nearly 18% growth in the Permian. The company generated substantial cash flow, returning a record $27 billion to shareholders through dividends and buybacks, indicating strong financial health.
Chevron has maintained capital discipline, with a commitment to fund only the most competitive projects. The company is focused on reducing costs with a target of $2 billion to $3 billion in structural cost reductions by 2026.
Chevron has expanded into New Energies, selling over 20 million barrels of bio-based diesel and advancing projects in carbon capture and renewable fuels, enhancing its competitive advantage in the energy transition.
Chevron expects to add $10 billion in annual free cash flow by 2026, driven by growth in advantaged upstream assets and improved operational efficiency. The company is optimistic about achieving full production rates from key projects.
Chevron has numerous projects in the pipeline, including growth in the Gulf of America and ongoing opportunities in West Africa and the Eastern Mediterranean. The company anticipates a production growth rate of around 6% annually through 2026.
The downstream segment faced challenges with lower margins and operational pressures, indicating potential vulnerabilities in that part of the business amid fluctuating market conditions.