Chevron (CVX) AI Stock Analysis

• Market Cap: $319.50B
• Dividend Yield: 4.29%
• Average Volume (3M): 7.96M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.52
• Revenue Growth: -5.02%
• EPS Growth: -23.13%
• Country: US
• Employees: 45,298
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.77
• Shares Outstanding: 2,047,393,900
• 10 Day Avg. Volume: 7,839,218
• 30 Day Avg. Volume: 7,963,784
• PEG Ratio: -1.03
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.36
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 6.19
• Enterprise Value/Ebitda: 6.66
• 1Y Price Target: $170.64
• Price Target Upside: 8.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 76 Outperform
• Price Target: $176.00 ▲(11.80% Upside)

Chevron's overall stock score of 76 reflects strong operational performance and strategic growth initiatives, particularly the successful merger with Hess. The company's robust financial health and positive technical indicators further support this score. However, valuation concerns and recent financial headwinds slightly temper the outlook.

Positive Factors

Strategic Growth through Mergers

The Hess acquisition enhances Chevron's asset base and market position, promising substantial free cash flow and production growth, strengthening its long-term competitive advantage.

Operational Excellence

Operational improvements in key segments like the Permian Basin enhance efficiency and cost-effectiveness, supporting sustained profitability and competitive positioning.

Strong Cash Flow Management

Effective cash flow management ensures Chevron can fund operations, invest in growth opportunities, and return value to shareholders, supporting long-term financial health.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can hinder Chevron's ability to expand its market share and invest in future growth, potentially impacting long-term financial performance.

Exploration Results Below Expectations

Underwhelming exploration results may limit Chevron's ability to replenish reserves, affecting future production capabilities and long-term growth prospects.

Foreign Currency Impact

Significant foreign currency impacts can erode profitability and create financial volatility, challenging Chevron's ability to maintain stable earnings over time.

Chevron Business Overview & Revenue Model

Company Description

Chevron Corporation, through its subsidiaries, engages in integrated energy and chemicals operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as operates a gas-to-liquids plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels; transporting 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. It is also involved in the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

How the Company Makes Money

Chevron generates revenue primarily through the exploration, production, and sale of crude oil and natural gas. The company's upstream segment focuses on finding and extracting oil and gas resources, which are then sold in global markets. The downstream segment encompasses refining operations, where crude oil is transformed into consumable products, including gasoline, diesel, and jet fuel, which are sold through retail and commercial channels. Additionally, Chevron's chemicals segment produces and sells petrochemicals, enhancing its revenue base. Significant partnerships, joint ventures, and strategic alliances with other industry players and governments also contribute to Chevron's financial performance, allowing the company to expand its operational capabilities and access new markets. Furthermore, fluctuations in commodity prices, efficient cost management, and investments in technology and renewable energy sources play crucial roles in driving the company's profitability.

Chevron Financial Statement Overview

Summary

Chevron demonstrates solid financial health with strong equity and low leverage. Profitability metrics indicate moderate operational efficiency, while cash flow performance remains robust despite recent declines. The company is well-positioned within the integrated oil & gas industry, with potential for improved margins and cash flows as market conditions stabilize.

Income Statement

Chevron has shown stable revenue levels with a slight decrease in recent years. Gross profit margin for TTM (Trailing-Twelve-Months) is 14.5%, indicating consistent profitability in the oil & gas sector. Net profit margin stands at 7.3%, showing moderate profitability. However, the EBIT margin of 3.9% suggests significant operational costs impacting core profitability. Revenue growth has fluctuated, with a recent decline from the prior year.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 58.3% for TTM, indicating financial stability. The debt-to-equity ratio is 0.20, showcasing a conservative leverage strategy. Return on equity is 9.4%, suggesting efficient use of equity capital. Overall, Chevron maintains a healthy balance sheet with low leverage risks.

Cash Flow

Operating cash flow to net income ratio is 1.71, indicating robust cash generation relative to profits. Free cash flow has declined, with a growth rate of -25.2% from the previous year, primarily due to fluctuating capital expenditures. Still, free cash flow to net income ratio is 0.82, reflecting effective cash flow management despite recent challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	189.25B	193.41B	196.91B	235.72B	155.61B	94.47B
Gross Profit	44.11B	56.93B	60.39B	65.59B	45.43B	22.82B
EBITDA	41.00B	45.81B	47.81B	67.00B	39.36B	10.44B
Net Income	13.73B	17.66B	21.37B	35.47B	15.63B	-5.54B
Balance Sheet
Total Assets	250.82B	256.94B	261.63B	257.71B	239.53B	239.79B
Cash, Cash Equivalents and Short-Term Investments	4.07B	6.79B	8.22B	17.90B	5.67B	5.63B
Total Debt	29.47B	24.54B	20.84B	23.34B	31.37B	44.31B
Total Liabilities	103.56B	103.78B	99.70B	97.47B	99.59B	107.06B
Stockholders Equity	146.42B	152.32B	160.96B	159.28B	139.07B	131.69B
Cash Flow
Free Cash Flow	16.10B	15.04B	19.78B	37.63B	21.09B	1.68B
Operating Cash Flow	32.13B	31.49B	35.61B	49.60B	29.19B	10.58B
Investing Cash Flow	-10.07B	-8.94B	-15.23B	-12.11B	-5.87B	-6.96B
Financing Cash Flow	-21.70B	-23.47B	-30.11B	-24.98B	-23.11B	-3.74B

Chevron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.42
• 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 Positive. The current price of 157.42 is below the 20-day moving average (MA) of 157.76, above the 50-day MA of 154.43, and above the 200-day MA of 147.63, indicating a neutral trend. The MACD of 0.86 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 28.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVX.

Chevron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XOM	79 Outperform	477.57B	15.88	11.81%	3.48%	-3.79%	-15.46%
CVX	76 Outperform	$319.50B	20.16	8.97%	4.29%	-5.02%	-23.13%
SHEL	74 Outperform	204.70B	15.79	7.51%	3.96%	-5.75%	-20.18%
PBR	73 Outperform	79.49B	5.99	18.86%	12.67%	-13.68%	-13.96%
TTE	73 Outperform	136.22B	10.68	13.37%	5.74%	-10.73%	-36.76%
BP	65 Neutral	88.56B	145.64	0.98%	5.54%	-7.40%	-90.89%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Chevron Corporate Events

Chevron Issues $5.5 Billion in Notes for Funding

On August 13, 2025, Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, issued a series of notes totaling $5.5 billion with varying maturity dates ranging from 2027 to 2035. This issuance, guaranteed by Chevron Corporation, aims to strengthen the company’s financial position by securing long-term funding through both fixed and floating rate notes, potentially impacting its debt structure and market standing.

Chevron Appoints John B. Hess to Board Post-Acquisition

On July 28, 2025, Chevron Corporation appointed John B. Hess to its board of directors, following its acquisition of Hess Corporation. Mr. Hess, who previously served as CEO of Hess Corporation, will also join the Public Policy and Sustainability Committee. Additionally, Chevron has entered into a memorandum of understanding with HFO Holdings LLC, owned by Mr. Hess, to transfer interests in Hess Toy Truck LLC and HG Aircraft LLC, along with intellectual property rights related to the ‘Hess’ name, to HFO. These strategic moves are part of Chevron’s integration efforts post-acquisition, aimed at streamlining operations and enhancing its market position.

Chevron Completes Acquisition of Hess Corporation

On July 18, 2025, Chevron Corporation completed its acquisition of Hess Corporation, creating a premier integrated oil and gas company with a diversified global portfolio. The merger, which includes significant assets in Guyana and the U.S. Bakken, is expected to drive substantial free cash flow and production growth into the 2030s, achieving $1 billion in annual cost synergies by the end of 2025, and enhancing shareholder returns.