Shares of Large-cap energy company Chevron moved 3.3% this evening, and are now trading at $148.76 per share. The average analyst target price for the stock is $178.17.
Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. The company currently returns an annual dividend yield of 4.1% and has moved -16.0% over the last year.
Based on its trailing earning per share of 13.48, Chevron has a trailing 12 month Price to Earnings (P/E) ratio of 11.0 CVX has a forward P/E ratio of 10.6 based on its earnings guidance of $None.
The company has a price to earnings growth (PEG) ratio of -1.66. A number between 0 and 1 could mean that the market is undervaluing Chevron's estimated growth potential
Growing Revenues With a Flat Capital Expenditure Trend
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $166,339 | $146,516 | $94,692 | $162,465 | $246,252 | $222,806 |
| Gross Margins | 12% | 4% | -8% | 13% | 20% | 19% |
| Operating Margins | 12.0% | 4.0% | -8.0% | 13.0% | 20.0% | 19.0% |
| Net Margins | 9.0% | 2.0% | 0.0% | 10.0% | 14.0% | 14.0% |
| Net Income (MM) | $14,860 | $2,924 | -$18 | $15,689 | $35,608 | $30,229 |
| Net Interest Expense (MM) | $748 | $798 | $697 | $712 | $516 | $486 |
| Depreciation & Amort. (MM) | $19,419 | $29,218 | $19,508 | $17,925 | $16,319 | $16,012 |
| Earnings Per Share | $7.74 | $1.54 | -$2.96 | $8.14 | $18.28 | $15.77 |
| Diluted Shares (MM) | 1,914 | 1,895 | 1,870 | 1,920 | 1,940 | 1,815 |
| Free Cash Flow (MM) | $16,826 | $13,198 | $1,655 | $21,131 | $37,628 | $27,642 |
| Capital Expenditures (MM) | $13,792 | $14,116 | $8,922 | $8,056 | $11,974 | $13,625 |
| Net Current Assets (MM) | -$64,200 | -$63,891 | -$80,986 | -$65,857 | -$47,124 | -$49,691 |
| Long Term Debt (MM) | $40,823 | $37,246 | $55,529 | $46,879 | $37,687 | $41,773 |
| Net Debt / EBITDA | 0.9 | 0.97 | 4.19 | 1.03 | 0.31 | 0.58 |
Chevron has growing revenues and a flat capital expenditure trend, low leverage, and a strong EPS growth trend. However, the firm suffers from slimmer gross margins than its peers and weak operating margins with a positive growth rate. Finally, we note that Chevron has irregular cash flows.
