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Chevron (CVX) Stock Analysis
Chevron (CVX) has paid a dividend since 1912 and increased its dividend for 36 consecutive years; qualifying the company as Dividend Aristocrat and Dividend Champion.
Current Dividend Annualized: $6.04
Chevron (CVX) Intrinsic Value – Margin of Safety Analysis
(Updated November 2023)
Normalized Diluted Earnings Per Share (TTM): $13.47
Free Cash Flow Per Share (TTM): $10.76
Cash Flow From Operations Per Share (TTM): $18.85
Estimated Intrinsic Value: $166
Target Buy Price Based on Required Margin of Safety = $138
(Required Margin of Safety Based On Risk Stability Grade:
A = 10%, B = 20%, C = 40%, D = 60%, F = 80%)
Target SELL Price Based on Estimated Intrinsic Value = $198
(Allow Overvaluation Adjusted by Risk Stability Grade:
A = 20%, B = 15%, C = 10%, D = 5%, F = 0%)
Risk / Stability Grade: B
A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.
B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.
C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.
D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.
F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.
Financial Risk Grade: A
A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.
B grade indicates a very low probability for a dividend cut.
C grade indicates a low probability for a dividend cut and/or average safety risk.
D grade indicates there are issues that should be considered concerning future dividend payments.
F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.
Business Quality Grade: C
A grade indicates earnings quality is high or far above average.
B grade indicates earnings quality is good and/or above average.
C grade indicates earnings quality is acceptable or average.
D grade indicates earnings quality is poor and requires thoughtful due diligence.
F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.
Earnings Report: 9/30/23
AAAMP Portfolios Position Disclosures:
Dividend Growth & Income (DGI) – LONG
Treasure Trove Dividend (TTD) – LONG
Global Dividend Value (GDV) – LONG
Global Conservative Income (GCI) – LONG
Global Value (GV) – LONG
Global Value Aggressive (GVA) – None
Global High Yield (GHY) – None
Industry: Oil & Gas Integrated
Chevron is an integrated energy company with exploration, production, and refining operations worldwide. Chevron is the second-largest oil company in the United States with production of 3.0 million of barrels of oil equivalent a day, including 7.7 million cubic feet a day of natural gas and 1.7 million of barrels of liquids a day.
Production activities take place in North America, South America, Europe, Africa, Asia, and Australia. Its refineries are in the United States and Asia for total refining capacity of 1.8 million barrels of oil a day. Proven reserves at year-end 2022 stood at 11.2 billion barrels of oil equivalent, including 6.1 billion barrels of liquids and 30.9 trillion cubic feet of natural gas.
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While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.