Chevron Corp

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CVX : NYSE : Basic Materials
$101.71 -0.34 | -0.33%
Today's Range: 101.37 - 102.63
Avg. Daily Volume: 6,565,400
08/30/16 - 3:59 PM ET

Financial Analysis


CHEVRON CORP's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not. CHEVRON CORP has weak liquidity. Currently, the Quick Ratio is 0.91 which shows a lack of 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 remained virtually unchanged only decreasing by 4.85% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)26060.034864.0
EBITDA ($mil)3292.05057.0
EBIT ($mil)-3429.0-1901.0
Net Income ($mil)-1470.0571.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)9084.012521.0
Total Assets ($mil)261478.0266455.0
Total Debt ($mil)45085.031910.0
Equity ($mil)147163.0154669.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin17.4220.59
EBITDA Margin12.6314.5
Operating Margin-13.16-5.45
Sales Turnover0.40.58
Return on Assets-0.284.57
Return on Equity-0.57.88
Debt Q2 FY16 Q2 FY15
Current Ratio1.31.44
Debt/Capital0.230.17
Interest Expense182.0122.0
Interest Coverage-18.84-15.58


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1886.521881.74
Div / share1.071.07
EPS-0.780.3
Book value / share78.0182.19
Institutional Own % n/a n/a
Avg Daily Volume6561400.07881848.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.31 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 13.98. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. After reviewing these and other key valuation criteria, CHEVRON CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CVX NM Peers 74.63   CVX 14.13 Peers 10.83

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CVX's P/E is negative making this valuation measure meaningless.

 

Premium. 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CVX 22.22 Peers 44.69   CVX NA Peers 1.04

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CVX is trading at a significant premium 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CVX 1.31 Peers 13.98   CVX -106.02 Peers -231.15

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CVX 1.84 Peers 2.57   CVX -32.48 Peers -26.35

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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