0.05 | 0.04%
CHEVRON CORP's gross profit margin for the first quarter of its fiscal year 2013 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. CHEVRON CORP has average liquidity. Currently, the Quick Ratio is 1.18 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 11.65% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 52263.0 | 57109.0 |
| EBITDA ($mil) | 11242.0 | 13465.0 |
| EBIT ($mil) | 7761.0 | 10260.0 |
| Net Income ($mil) | 6178.0 | 6471.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 19048.0 | 19768.0 |
| Total Assets ($mil) | 237410.0 | 214890.0 |
| Total Debt ($mil) | 14143.0 | 9275.0 |
| Equity ($mil) | 140134.0 | 125507.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 23.89 | 25.93 |
| EBITDA Margin | 21.51 | 23.57 |
| Operating Margin | 14.85 | 17.97 |
| Sales Turnover | 0.92 | 1.1 |
| Return on Assets | 10.9 | 12.63 |
| Return on Equity | 18.47 | 21.63 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.58 | 1.61 |
| Debt/Capital | 0.09 | 0.07 |
| Interest Expense | 56.0 | 59.0 |
| Interest Coverage | 138.59 | 173.9 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 1938.98 | 1973.18 |
| Div / share | 0.9 | 0.81 |
| EPS | 3.18 | 3.27 |
| Book value / share | 72.27 | 63.61 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 6133306.0 | 5736264.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 24.66 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.70 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 3.72. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CHEVRON CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CVX 9.28 | Peers 24.66 | CVX 6.59 | Peers 9.63 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CVX is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CVX is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| CVX 10.06 | Peers 15.69 | CVX NM | Peers 1.66 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CVX is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CVX's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
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| CVX 1.70 | Peers 3.72 | CVX -2.87 | Peers -20.40 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CVX is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. CVX is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| CVX 1.09 | Peers 2.36 | CVX -8.18 | Peers 9.80 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CVX is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. CVX significantly trails its peers on the basis of sales growth |
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