Chevron Corporation ($CVX) Cautious Buy or Hold to $122 Confident Investor Rating: Fair

Company name Chevron Corporation
Stock ticker CVX
Live stock price [stckqut]CVX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $94.25
Target stock price (averages with growth) $99.09
Target stock price (averages with no growth) $86.44
Target stock price (manual assumptions) $121.88

The following company description is from Google Finance: http://www.google.com/finance?q=cvx

Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining activities, power generation and energy services. Upstream operations consist primarily of exploring for, developing and producing crude oil and natural gas; processing, transportation and regasification associated with liquefied natural gas; transporting crude oil by international oil export pipelines; transporting, storage and marketing of natural gas, and a gas-to-liquids project. Downstream operations consist primarily of refining crude oil into petroleum products; 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.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Chevron Corporation as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $111.69

Growth: 0.1

Current EPS (TTM): $11.08

P/E: 11

Future EPS Calc: $17.84

Future Stock Price Calc: $196.28

Target stock price: $121.88

I hope that this makes you a better investor. [/s2If]

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