Chevron Corp
🇺🇸 CVX · NYSE/NASDAQ · US1667641005
Energy
USD 191.10 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
33.2
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: 191.10 ÷ 5.76 = 33.2
TTM period through: 2026-03-31
Forward P/E (estimated): 14.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 32.5
Yield (Fwd)
3.73%
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): 3.72%
Div. Growth (5Y CAGR)
5.8%
Growth Streak
8 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
4.4x
Latest quarter: 4.4x
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: 2026-03-31
Latest quarter (2026-03-31): 4.4x
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)
123.5%
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): 120.8%
Cash Flow Payout (TTM): 42.8%
FCF Coverage (TTM): 1.01x
ROE
6.6%
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
9.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Chevron is a high-quality integrated energy major with a fortress balance sheet and a highly secure dividend supported by robust operating cash flows. While the 3.72% yield remains exceptionally well-covered by cash despite GAAP accounting noise from geopolitical disruptions, the current valuation around $191.10 limits potential upside. Existing shareholders should maintain positions given the strong fundamentals, but new investors may want to monitor the stock for a better entry point.
Sector Context
Chevron is a premier fully integrated energy company involved in all aspects of the oil and gas industry, from exploration and production to refining and marketing. While energy is a cyclical sector vulnerable to commodity price swings, integrated majors like Chevron offer defensive characteristics, strong balance sheets, and robust cash flow generation that supports reliable dividend payouts through market cycles.
Temporary Opportunity Identified
GAAP earnings are temporarily depressed by production cuts related to the Iran conflict and timing effects, artificially inflating the TTM P/E to 33.16x and the GAAP payout ratio over 100%, while cash flow remains highly robust.
📊 Strategy Analysis
- • Unbroken dividend growth streak with a 3.72% TTM yield heavily supported by robust operating cash flow (42.78% cash flow payout ratio), despite depressed GAAP earnings.
- • Fortress balance sheet with a very low Debt/Equity ratio of 0.25x, providing significant financial flexibility and safety during commodity price cycles.
- • Forward P/E of 14.22x suggests the current elevated TTM P/E of 33.16x is artificially inflated by temporary production impacts and timing effects.
⚠ What to Watch
- • Current stock price of $191.10 sits significantly above the dividend-based fair value bounds, suggesting limited capital appreciation potential.
- • TTM earnings and production have been temporarily impacted by geopolitical disruptions, inflating the trailing P/E to 33.16x and the GAAP payout ratio to 107.06%.
- • Long-term energy transition risks and cyclical vulnerability to crude oil price corrections as geopolitical risk premiums in the Middle East fluctuate.
📊 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: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.