Chevron (CVX) AI Stock Analysis

• Market Cap: $267.61B
• Dividend Yield: 4.31%
• Average Volume (3M): 7.23M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.54
• Revenue Growth: -1.90%
• EPS Growth: -14.56%
• Country: US
• Employees: 45,600
• Sector: Energy
• Sector Strength: 57
• Industry: Fossil Fuels
• EPS (TTM): 9.70
• Shares Outstanding: 1,760,598,500
• 10 Day Avg. Volume: 7,081,269
• 30 Day Avg. Volume: 7,225,606
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.42
• Price to Cash Flow (P/CF): 7.80
• P/FCF Ratio: 7.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $176.47
• Price Target Upside: 16.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Chevron's overall score of 76 reflects its strong financial stability, consistent shareholder returns, and promising future growth prospects, despite minor short-term challenges. The company's robust financial performance and strategic initiatives in new energies and cash flow growth are significant strengths. Technical indicators and valuation suggest a stable stock with attractive long-term potential, tempered by recent earnings and margin pressures.

Positive Factors

Growth in the Permian Basin

The company's strong growth trajectory in the Permian basin, with a 5-year compound annual growth rate of 16%, supports a favorable outlook.

Strategic Developments

Forecasts indicate a $10 billion free cash flow inflection by 2026 due to strategic developments in TCO, Permian, and the Gulf of America, coupled with cost reductions.

Negative Factors

Market Risks

Chevron is exposed to heavy market risk as earnings depend on the price volatility of crude oil, natural gas and other refinery products.

Chevron Business Overview & Revenue Model

Company Description

Chevron Corp. engages in the provision of administrative, financial management, and technology support for energy and chemical operations. It operates through the Upstream and Downstream segments. The Upstream segment consists of exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; processing, transporting, storage, and marketing of natural gas; and a gas-to-liquids plant. The Downstream segment comprises refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. The company was founded in 1906 and is headquartered in San Ramon, CA.

How the Company Makes Money

Chevron makes money primarily through the exploration, production, and sale of crude oil and natural gas. Its upstream operations involve locating and extracting oil and gas from reserves around the world, which are then sold to various markets. Downstream operations include refining crude oil into petroleum products such as gasoline, diesel, and jet fuel, which are marketed and distributed to consumers and businesses. Additionally, Chevron's chemicals division produces and sells petrochemicals and additives. The company also generates revenue from its investments in renewable energy and technology development, although these segments currently represent a smaller portion of its overall earnings. Key revenue streams include the sale of crude oil, refined petroleum products, natural gas, and chemical products. Strategic partnerships and joint ventures, such as those with other energy companies and technology innovators, further support Chevron's revenue generation and expansion efforts.

Chevron Financial Statement Overview

Summary

Overall, Chevron demonstrates solid financial health with robust operational efficiency and a strong balance sheet. Despite minor fluctuations in revenue and profitability, the company's financials reflect stability and resilience in a challenging industry. Continued focus on operational improvements and cash flow management will be key to driving future growth.

Income Statement

Chevron's TTM (Trailing-Twelve-Months) financials show strong profitability with a robust Gross Profit Margin of 48.62% and a solid EBIT Margin of 30.13%. Although the Net Profit Margin is lower at 8.96%, indicating some cost pressures or non-operating expenses, the company maintains healthy margins overall. Revenue decreased slightly from 2022 to 2023, but has stabilized in the TTM period, reflecting resilience in the volatile fossil fuels market.

Balance Sheet

Chevron's balance sheet remains strong with a relatively low Debt-to-Equity Ratio of 0.16, suggesting prudent use of leverage. The Equity Ratio stands at 59.28%, indicating a strong capital position. However, the Return on Equity (ROE) of 11.60% in the TTM period shows room for improvement in generating returns for shareholders.

Cash Flow

Chevron exhibits healthy cash flow management with an Operating Cash Flow to Net Income Ratio of 1.29, indicating strong cash generation from operations. The Free Cash Flow to Net Income Ratio of 0.62 is lower but still robust, suggesting effective reinvestment strategies. Though Free Cash Flow Growth has been negative compared to previous years, operational efficiency appears solid.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
202.79B	196.91B	235.72B	155.61B	94.47B
	Gross Profit
66.30B	60.39B	73.98B	45.43B	22.82B
	EBIT
27.51B	26.23B	39.95B	16.18B	-6.10B
	EBITDA
45.38B	45.63B	66.05B	40.28B	11.00B
	Net Income Common Stockholders
17.66B	21.37B	35.47B	15.63B	-5.54B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.70B	8.22B	17.90B	5.67B	5.63B
	Total Assets
0.00	261.63B	257.71B	239.53B	239.79B
	Total Debt
0.00	26.07B	23.34B	31.37B	44.31B
	Net Debt
0.00	17.89B	5.66B	25.73B	38.72B
	Total Liabilities
-157.03B	99.70B	97.47B	99.59B	107.06B
	Stockholders Equity
157.03B	160.96B	191.86B	167.38B	162.21B
Cash Flow		Free Cash Flow
31.50M	19.78B	37.63B	21.09B	1.68B
	Operating Cash Flow
31.50M	35.61B	49.60B	29.19B	10.58B
	Investing Cash Flow
-8.90M	-15.23B	-12.11B	-5.90B	-7.00B
	Financing Cash Flow
-23.50M	-30.11B	-24.98B	-23.10B	-3.70B

Chevron Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 152.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVX, the sentiment is Neutral. The current price of 152 is below the 20-day moving average (MA) of 154.77, above the 50-day MA of 151.46, and above the 200-day MA of 149.61, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVX.

Chevron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COP	78 Outperform	$126.16B	12.70	653.82%	3.37%	-2.57%	-14.01%
CVX	76 Outperform	$267.61B	15.64	11.25%	4.31%	-1.90%	-14.56%
XOM	76 Outperform	$466.63B	13.72	12.45%	3.60%	1.86%	-11.52%
HES	75 Outperform	$45.92B	16.58	24.69%	1.26%	20.51%	99.86%
OXY	72 Outperform	$43.70B	19.04	6.96%	1.89%	-4.35%	-37.69%
PSX	71 Outperform	$52.87B	25.97	7.72%	3.68%	-2.81%	-68.00%
Sector *	57 Neutral	$8.34B	5.35	-5.98%	7.29%	0.20%	-69.45%

Chevron Corporate Events

Chevron Adjusts Executive Compensation and Equity Awards

On January 29, 2025, Chevron’s independent Board of Directors reviewed and adjusted the compensation of its executive officers. CEO Michael K. Wirth’s salary remained unchanged, whereas other executives, including Eimear P. Bonner and Mark A. Nelson, received salary increases effective March 1, 2025. The Board also maintained existing target percentages for the Chevron Incentive Plan (CIP) and approved significant equity awards under the 2022 Long-Term Incentive Plan, reflecting Chevron’s strategic focus on rewarding performance and retaining executive talent. Additionally, the equity awards include performance shares and stock options, with vesting periods and conditions tied to Chevron’s performance against industry peers and the S&P 500 Index, highlighting the company’s commitment to aligning executive compensation with shareholder returns.