Chevron CVX
What does Chevron do?
Chevron is an integrated energy company based in the US and is one of the largest publicly listed oil and gas companies in the world. The business is divided into the Upstream and Downstream segments. Upstream covers the exploration, development and production of crude oil and natural gas, the liquefaction and transport of liquefied natural gas (LNG), as well as pipeline transport and carbon capture and storage projects.
Downstream covers the refining of crude oil into petroleum products, the distribution of crude oil, fuels and lubricants, and the production of renewable fuels and chemical products. Customers are industry, retail, utilities and end consumers via service station networks. The company competes with other international oil companies. Its integrated structure across the entire value chain, together with widely diversified production regions and stakes in major LNG projects, is intended to help partly offset commodity price fluctuations.
Score profile
Rank vs. Energy (78 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Chevron ranks in the middle in the group Energy (5.0/10). On growth, the company ranks above average in the group Energy (7.3/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Energy (4.9/10). On financial strength, Chevron ranks above average in the group Energy (6.5/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 12.8x | 11.8x | better than 43 % |
| Trailing P/E | 15.5x | 13.6x | better than 37 % |
| PEG ratio | 0.8x | 1.1x | better than 69 % |
| EV/EBITDA | 7.5x | 6.8x | better than 37 % |
| Price/sales | 1.8x | 1.7x | better than 46 % |
| Price/book | 2.1x | 1.5x | better than 34 % |
| Revenue growth | 34.8% | 24.7% | better than 65 % |
| Earnings growth | 178.0% | 2.4% | better than 82 % |
| Gross margin | 44.4% | 41.8% | better than 51 % |
| Operating margin | 17.9% | 18.8% | better than 47 % |
| Net margin | 11.9% | 11.3% | better than 53 % |
| Return on equity | 13.9% | 13.9% | better than 48 % |
| Debt/equity | 16.8% | 46.7% | better than 90 % |
| Current ratio | 1.3x | 1.3x | better than 49 % |
| Free cash flow yield | 6.3% | 5.4% | better than 55 % |
| Dividend yield | 3.4% | 2.8% | – |
| Payout ratio | 51.8% | 32.6% | – |
| Beta | 0.45 | 0.69 | – |
Valuation: what is Chevron worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Chevron a model range of 190.45 USD to 193.93 USD per share.
24 analysts, average rating “Buy”, average price target 243.46 USD (+15.2%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Results depend heavily on crude oil and natural gas prices as well as production volumes.
- Refining margins and demand for fuels and chemical products determine the results of the Downstream business.
- Capital discipline and low production costs per barrel influence how much of revenue remains as cash flow.
Risks
- Sharp price swings in oil and gas can quickly change earnings, cash flow and investment capacity.
- Regulation, climate policy and the shift toward renewable energy can weigh on demand and project profitability in the long term.
- Geopolitical tensions, operational accidents and environmental damage endanger production sites and reputation, and may lead to liability costs.
What to look for with Chevron
Operating cash flow relative to capital expenditure and shareholder distributions shows whether the capital-intensive, price-dependent business can sustainably fund dividends and share buybacks.