MMarketMath

CVX

Fast growerQuality: Medium (63/100)2 red flags

Chevron Corporation · Energy · Integrated Oil & Gas

$203.09

52w 146.49 – 214.71

20y monthly, adjusted

Mkt cap

$401.3B

P/E

32.6

P/FCF

24.2

FCF yield

4.1%

ROE

6.6%

Shldr yield

6.2%

div 3.2% + bb 3.0%

What today's price assumes

At $401.3B, the market is pricing in 10.3% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last five years, FCF actually grew 58.6% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $128 · $287 · $414 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 5.5× across 18 years, CVX would trade near $94/share (25th–75th percentile: $63–$135); it trades at 11.8× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

−7.9%

Rev 5y

+14.3%

Rev 10y

+2.9%

EPS 5y

EPS 10y

+10.5%

FCF 5y

+58.6%

FCF 10y

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $220.9B
2008: $273.0B
2009: $171.6B
2010: $204.9B
2011: $253.7B
2012: $241.9B
2013: $228.8B
2014: $212.0B
2015: $138.5B
2016: $114.5B
2017: $141.7B
2018: $158.9B
2019: $139.9B
2020: $94.5B
2021: $155.6B
2022: $235.7B
2023: $196.9B
2024: $193.4B
2025: $184.4B
$0$100.0B$200.0B
07
11
15
19
23

Net income

2007: $18.7B
2008: $23.9B
2009: $10.5B
2010: $19.0B
2011: $26.9B
2012: $26.2B
2013: $21.4B
2014: $19.2B
2015: $4.6B
2016: −$497.0M
2017: $9.2B
2018: $14.8B
2019: $2.9B
2020: −$5.5B
2021: $15.6B
2022: $35.5B
2023: $21.4B
2024: $17.7B
2025: $12.3B
$0$20.0B
07
11
15
19
23

Free cash flow

2007: $8.3B
2008: $10.0B
2009: −$470.0M
2010: $11.7B
2011: $14.6B
2012: $7.9B
2013: −$3.0B
2014: −$3.9B
2015: −$10.0B
2016: −$5.4B
2017: $6.9B
2018: $16.8B
2019: $13.2B
2020: $1.7B
2021: $21.1B
2022: $37.6B
2023: $19.8B
2024: $15.0B
2025: $16.6B
$0$20.0B
07
11
15
19
23

Diluted shares (lower is better)

2008: 2.0B
2009: 2.0B
2010: 2.0B
2011: 2.0B
2012: 2.0B
2013: 1.9B
2014: 1.9B
2015: 1.9B
2016: 1.9B
2017: 1.9B
2018: 1.9B
2019: 1.9B
2020: 1.9B
2021: 1.9B
2022: 1.9B
2023: 1.9B
2024: 1.8B
2025: 1.9B
01.0B2.0B
07
11
15
19
23

Margins

0%10%07101316192225
Net marginFCF margin

Capital returned (dividends + buybacks)

2007: $4.8B
2008: $5.2B
2009: $5.3B
2010: $6.4B
2011: $10.4B
2012: $11.8B
2013: $12.5B
2014: $12.9B
2015: $8.0B
2016: $8.0B
2017: $8.1B
2018: $10.3B
2019: $13.0B
2020: $11.4B
2021: $11.6B
2022: $22.2B
2023: $26.3B
2024: $27.0B
2025: $24.8B
$0$10.0B$20.0B
07
11
15
19
23

Cash vs long-term debt

$20.0B$40.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $47.2B
Q3'23: $51.9B
Q4'23: $48.9B
Q1'24: $46.6B
Q2'24: $49.6B
Q3'24: $48.9B
Q4'24: $48.3B
Q1'25: $46.1B
Q2'25: $44.4B
Q3'25: $48.2B
Q4'25: $45.8B
Q1'26: $47.6B
Q2'26: $67.2B
$0$20.0B$40.0B$60.0B
23
24
24
25
26

Net income by quarter

Q2'23: $6.0B
Q3'23: $6.5B
Q4'23: $2.3B
Q1'24: $5.5B
Q2'24: $4.4B
Q3'24: $4.5B
Q4'24: $3.2B
Q1'25: $3.5B
Q2'25: $2.5B
Q3'25: $3.5B
Q4'25: $2.8B
Q1'26: $2.2B
Q2'26: $12.1B
$0$5.0B$10.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$67.2B+51.4%$12.1B+384.8%6.11$22.6B
Q1'26$47.6B+3.2%$2.2B−36.9%1.11$2.5B
Q4'25 *$45.8B−5.3%$2.8B−14.5%1.36$10.8B
Q3'25$48.2B−1.5%$3.5B−21.1%1.82$9.4B
Q2'25$44.4B−10.5%$2.5B−43.8%1.45$8.6B
Q1'25$46.1B−1.0%$3.5B−36.4%2.00$5.2B
Q4'24 *$48.3B−1.2%$3.2B+43.4%1.84$8.7B
Q3'24$48.9B−5.8%$4.5B−31.2%2.48$9.7B
Q2'24$49.6B+5.0%$4.4B−26.2%2.43$6.3B
Q1'24$46.6B−4.6%$5.5B−16.3%2.97$6.8B
Q4'23 *$48.9B−10.3%$2.3B−64.4%1.22$12.4B
Q3'23$51.9B−18.2%$6.5B−41.9%3.48$9.7B
Q2'23$47.2B−27.8%$6.0B−48.3%3.20$6.3B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue−7.9%+14.3%+2.9%−0.7%
Operating cash flow−11.9%+26.3%+5.7%+0.5%
Free cash flow−23.9%+58.6%+5.9%+2.3%
EPS (diluted)−28.7%+27.5%+10.5%−2.4%
Equity+5.4%+7.2%+2.0%+3.9%
LT debt+23.0%+9.2%+1.7%+8.9%
Diluted shares−1.5%−0.2%−0.1%−0.5%
Stock price+12.3%+20.5%+11.8%+9.2%

$100, 3 years ago

$142vs $176 in SPY

12.3% vs 20.7%/yr

$100, 5 years ago

$254vs $181 in SPY

20.5% vs 12.6%/yr

$100, 10 years ago

$305vs $412 in SPY

11.8% vs 15.2%/yr

$100, 15 years ago

$374vs $813 in SPY

9.2% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$4.31

$195.8B created / $45.4B retained

Last 10 years

$9.49

$218.5B created / $23.0B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

15.0%

OCF ÷ (equity + debt)

OCF / EV yield

7.8%

MC vs 10× OCF

1.18

≤1 = priced under 10× OCF

Debt / FCF

2.4y

SBC / FCF

Owner earnings

$16.6B

OCF − capex − SBC

OE yield

4.1%

Share count 5y

−0.6%

per year; negative = buybacks

Growth engine (5y): reinvested 37.4% of operating cash flow at an incremental return of 34.8% — an organically fundable growth rate of about 13.0% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

16 of 22 checks pass · 73%. Checks with structurally missing inputs are excluded.

Growth & Consistency

5/6

  • Revenue growth

    14.3% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    · 5y CAGR ≥ 5%

    na
  • FCF growth

    58.6% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    4 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    9 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    8 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    26.3% vs 14.3% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

3/5

  • Net margin

    6.7% · ≥ 8%

    fail
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    6.6% · ≥ 12%

    fail
  • Cash ROIC

    15.0% · ≥ 12%

    pass
  • FCF margin

    9.0% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $33.9B vs NI $12.3B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

3/4

  • Debt payable from cash flow

    2.4y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    18% · cash ≥ 50% of LT debt

    fail
  • Leverage

    0.21 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $186.4B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

2/3

  • Share count flat or shrinking

    -0.6% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    · SBC ≤ 15% of FCF

    na
  • Distributions funded by FCF

    150% · dividends + buybacks ≤ 100% of FCF

    fail
  • Repurchases are a habit

    10 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

3/4

  • FCF yield

    4.1% · ≥ 3%

    pass
  • Earnings multiple

    32.6 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    10.3% vs 58.6% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    6.2% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Revenue declining

Latest fiscal-year revenue fell more than 3% versus the prior year.

Distributions exceed FCF

Dividends plus buybacks exceeded free cash flow in the latest fiscal year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
2025184,43212,2996.6333,93917,34716,59212,75112,0797,28539,781186,4501,856
2024193,41417,6619.7231,49216,44815,04411,80115,2298,26220,135152,3181,817
2023196,91321,36911.3635,60915,82919,78011,33614,9398,17820,307160,9571,880
2022235,71735,46518.2849,60211,97437,62810,96811,25517,67821,375159,2821,940
2021155,60615,6258.1429,1878,05621,13110,1791,3835,64025,676139,0671,920
202094,471-5,543-2.9610,5778,9221,6559,6511,7575,59625,676131,6881,870
2019139,8652,9241.5427,31414,11613,1988,9594,0396,91118,730144,2131,895
2018158,90214,8247.7430,61813,79216,8268,5021,7519,34223,730154,5541,914
2017141,7229,1954.8520,33813,4046,9348,13214,81333,477148,1241,898
2016114,472-497-0.2712,69018,109-5,4198,03226,98835,193145,5561,873
2015138,4774,5872.4519,45629,504-10,0487,992211,02233,542152,7161,875
2014211,97019,24110.1431,47535,407-3,9327,9285,00612,78523,960155,0281,898
2013228,84821,42311.0935,00237,985-2,9837,4745,00416,24519,960149,1131,932
2012241,90926,17913.3238,81230,9387,8746,8445,00420,93911,966136,5241,965
2011253,70626,89513.4441,09526,50014,5956,1364,26215,8649,684121,3822,001
2010204,92819,0249.4831,35419,61211,7425,66977514,06011,003105,0812,007
2009171,63610,4835.2419,37319,843-4705,3028,7169,82991,9142,001
2008273,00523,93111.6729,63219,6669,9665,1629,3475,74286,6482,050
2007220,90418,6888.7724,97716,6788,2994,7917,36277,088

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.