Chevron Corp
🇺🇸 CVX · NYSE/NASDAQ · US1667641005
Energy
USD 198.97 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
32.3
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 198.97 ÷ 6.16 = 32.3
TTM period through: 2025-12-31
Forward P/E (estimated): 24.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 30.0
Yield (Fwd)
3.58%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.46%
Net Debt/EBITDA (TTM)
1.0x
Latest quarter: 3.7x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 3.7x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
115.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 103.7%
Cash Flow Payout (TTM): 37.6%
FCF Coverage (TTM): 1.30x
ROE
7.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
10.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Chevron possesses exceptional financial strength and a highly secure 3.46% dividend yield, as evidenced by its conservative 37.6% cash flow payout ratio. However, current valuation multiples are severely stretched at a P/E over 32, driven by a geopolitical risk premium in global oil markets. Existing shareholders should maintain positions given the reliable income stream, but new investors may want to wait for a more attractive entry point when commodity prices normalize.
Sector Context
Chevron is a premier integrated energy company involved in global oil and gas exploration, production, refining, and chemicals. In the highly cyclical energy sector, conservative dividend investors should prioritize integrated majors with fortress balance sheets that can maintain payouts during commodity price crashes, while avoiding initiating positions during peak geopolitical price spikes.
📊 Strategy Analysis
- • Outstanding financial stability with a conservative Net Debt/EBITDA of 0.98x and Debt/Equity of 0.25
- • Dividend is highly secure with a free cash flow coverage ratio of 1.30x and a comfortable cash flow payout ratio of 37.57%
- • Flawless dividend consistency score with a 10-year track record of uninterrupted payments and steady growth
⚠ What to Watch
- • Valuation is severely stretched with a TTM P/E of 32.31x, well above the strategy's target range of 8-15x
- • Current stock price reflects a cyclical peak driven by a geopolitical risk premium rather than underlying fundamental expansion
- • Underlying earnings momentum has shown weakness with a 5-year EPS CAGR of -5.4%, creating downside risk if commodity prices normalize
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.