Now trading at a price of $162.93, Chevron has moved -2.6% so far today.
Over the last year, Chevron logged a 2.0% change, with its stock price reaching a high of $189.68 and a low of $140.46. Over the same period, the stock underperformed the S&P 500 index by -8.0%. As of April 2023, the company's 50-day average price was $159.59. Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. Based in San Ramon, CA, the large-cap Energy company has 43,846 full time employees. Chevron has offered a 3.5% dividend yield over the last 12 months.
Low Leverage Levels and Exceptional EPS Growth:
| 2017-02-23 | 2018-02-22 | 2019-02-22 | 2020-02-21 | 2021-02-25 | 2022-02-24 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $110,215 | $134,674 | $158,902 | $139,865 | $94,471 | $155,606 |
| Gross Margins | 28.0% | 30.0% | 40.0% | 43.0% | 47.0% | 43.0% |
| Operating Margins | -6% | 2% | 9% | 0% | -6% | 10% |
| Net Margins | 0.0% | 7.0% | 9.0% | 2.0% | -6.0% | 10.0% |
| Net Income (MM) | -$497 | $9,195 | $14,824 | $2,924 | -$5,543 | $15,625 |
| Net Interest Expense (MM) | -$201 | -$307 | -$748 | -$798 | -$697 | -$712 |
| Depreciation & Amort. (MM) | -$19,457 | -$19,349 | -$19,419 | -$29,218 | -$19,508 | -$17,925 |
| Earnings Per Share | -$0.27 | $4.84 | $7.75 | $1.54 | -$2.96 | $8.13 |
| EPS Growth | n/a | 1892.59% | 60.12% | -80.13% | -292.21% | 374.66% |
| Diluted Shares (MM) | 1,873 | 1,898 | 1,914 | 1,895 | 1,870 | 1,922 |
| Free Cash Flow (MM) | $28,178 | $28,646 | $44,410 | $41,430 | $19,499 | $37,243 |
| Capital Expenditures (MM) | -$15,332 | -$8,308 | -$13,792 | -$14,116 | -$8,922 | -$8,056 |
| Net Current Assets (MM) | -$83,737 | -$75,927 | -$64,200 | -$63,891 | -$80,986 | -$65,857 |
| Long Term Debt (MM) | $35,286 | $33,571 | $28,733 | $23,691 | $42,767 | $31,113 |
| Net Debt / EBITDA | 2.95 | 1.55 | 0.74 | 0.72 | 2.88 | 0.75 |
Chevron has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and just enough current assets to cover current liabilities. We also note that the company benefits from exceptional EPS growth and low leverage. However, the firm suffers from slimmer gross margins than its peers and weak operating margins with a positive growth rate.
Chevron's Valuation Is in Line With Its Sector Averages:
Chevron has a trailing twelve month P/E ratio of 10.1, compared to an average of 7.54 for the Energy sector. Based on its EPS guidance of $14.25, the company has a forward P/E ratio of 11.2. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 97.5%. On this basis, Chevron's PEG ratio is 0.1. Using instead the 11.6% weighted average of Chevron's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.87, which implies that its shares may be underpriced. In contrast, Chevron is likely overvalued compared to the book value of its equity, since its P/B ratio of 1.92 is higher than the sector average of 1.68. The company's shares are currently trading 41.2% above their Graham number.
Chevron Has an Average Rating of Buy:
The 25 analysts following Chevron have set target prices ranging from $165.0 to $209.0 per share, for an average of $186.68 with a buy rating. As of April 2023, the company is trading -14.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Chevron has a very low short interest because 0.7% of the company's shares are sold short. Institutions own 72.6% of the company's shares, and the insider ownership rate stands at 0.04%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $26,307,702,261.
