Chevron Corporation (CVX) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Chevron Corporation

Updated on October 31, 2026 · accounts published on October 30, 2026

A cash-generative oil major with shrinking profits and a stretched dividend payout

Chevron trades at a P/E of 17.2 over the last 12 months, 11 % above its ten-year median of 15.6 and in line with the energy sector median.

• Is Chevron expensive or cheap? Chevron's P/E of 17.2 sits 11 % above its ten-year median, and it traded lower 58 % of the time over the last decade.
• How is the business doing? Operating margin of 16 % over the last 12 months is far above its 2014-2025 average of 6 %, even as EPS fell 32 %.
• How strong is the balance sheet? Net debt is 1.0× EBITDA in fiscal 2025, half the 2× ceiling for energy, but the dividend took 104 % of earnings.
• What to expect from the next earnings? Next results on January 29, 2027: analysts expect EPS of $5.46, and the 2026 EPS consensus rose 6 % in 30 days.
• Does Chevron generate cash through the cycle and cover its dividend? Free cash flow was positive in 9 of the last 10 fiscal years and covered the dividend 1.3× in fiscal 2025, just above the 1.2× bar.

Is Chevron expensive or cheap?

Over the last 12 months Chevron trades at a P/E of 17.2, against a ten-year median of 15.6 and a decade range from 7.8 to 48.2. That is a modest premium to its own history and in line with the energy sector median of 17.3 across 140 companies. EV/EBITDA of 7.6× is below its ten-year average of 9.5×, so on cash earnings the stock looks less stretched than on accounting profit. The context is the rally: the shares are up 58 % in 12 months and sit within 1 % of their 52-week high of $235.52.

How is the business doing?

Over the last 12 months Chevron's revenue fell 5 % and EPS 32 %, yet its operating margin of 16 % is well above fiscal 2025 (9 %) and the 2014-2025 average of 6 %. Net margin is 10 % and ROE 14 % over the same period. The weak spot is returns on capital through the cycle: ROIC cleared 10 % in only 2 of the last 10 fiscal years, with a low of −2.4 % in 2020, and averaged 8.2 % over 2021-2025, below the 10 % the sector treats as healthy. In energy profits follow the commodity, so one strong year proves little.

How strong is the balance sheet?

Leverage is light: debt to equity is 0.20 over the last 12 months, and net debt of $22.44 per share equals 9.5 % of the share price (fiscal 2025). Net debt to EBITDA of 1.0× in fiscal 2025 sits well under the 2× the sector treats as healthy, and the current ratio is 1.25. The quality scores are middling, with an Altman Z of 2.9 in the grey zone and a Piotroski score of 5 out of 9. The dividend yields 3 % and has risen for 8 consecutive fiscal years, but its 104 % payout in fiscal 2025 exceeded that year's earnings.

What to expect from the next earnings?

Chevron reported on October 30, 2026 with EPS of $5.28 against $4.87 expected, an 8.4 % beat, and it has topped EPS estimates in 7 of the last 8 quarters. Estimates are moving up: the 2026 EPS consensus rose 6 % in the last 30 days, from $16.53 to $17.53 among 14 analysts, and the revenue consensus rose 3.9 %. Of 53 analysts covering Chevron, 34 rate it a buy, 15 a hold and 4 a sell. For the January 29, 2027 report the bar is EPS of $5.46, above the $5.28 just delivered.

Does Chevron generate cash through the cycle and cover its dividend?

Oil and gas earnings swing with crude prices, so in energy the real test is cash across the whole cycle and whether the dividend survives the lean years. Chevron passes on discipline: positive free cash flow in 9 of 10 fiscal years (2016-2025), above the sector bar of 8. Free cash flow covered the dividend 1.3× in fiscal 2025, close to the 1.2× healthy floor. The free cash flow yield of 3.5 % over the last 12 months falls well short of the 8 % the sector considers healthy, and capex of 9.4 % of revenue in fiscal 2025 sits just under the 10 % to 20 % range.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.