NYSE · Energy

Chevron Corporation

CVX · Oil & Gas Integrated

$173.63

▼ -3.95 (-2.22%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

D⤢

Gross Profit Margin 28.4%

Operating Margin 6.8%

Net Income Margin 4.6%

Fin. Health

D⤢

Years to Pay Off Debt 20.6 yrs

Working Capital vs Long-Term Debt -$35.6B

Working Capital $4.0B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.88x

Cash Flow

F⤢

Free Cash Flow -$1.5B

CapEx % of Net Income 183.8%

Owner Earnings $12.2B

Profitability

Gross Profit Margin 28.4%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 6.8%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 4.6%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 20.6 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$35.6B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $4.0B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$1.5B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 183.8%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $12.2B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Chevron Corporation

Chevron Corporation, through its subsidiaries, engages in the integrated energy and chemicals operations in the United States and internationally. It operates through Upstream, Downstream, and All Other segments. The Upstream segment engages in the exploration for, development, production, and transportation of crude oil and natural gas; processing, liquefaction, transportation, and regasification of liquefied natural gas; transportation of crude oil through pipelines; transportation, storage, and marketing of natural gas; carbon capture and storage; and operation of a gas-to-liquids plant. Its Downstream segment refines crude oil into petroleum products; markets crude oil, refined products, and lubricants; manufactures and markets renewable fuels; transports crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufactures and markets commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. The All Other segment engages in cash management and debt financing; insurance; real estate; and technology activities. It has operations in North America, South America, Europe, Africa, Asia, and Australia. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is headquartered in Houston, Texas.

Market Data

Market Cap $345.8B

Enterprise Value $401.9B

P/E (TTM) 30.20

Dividend Yield 3.89%

Exchange NYSE

Key Margins

Gross Profit 28.4%

Operating Margin 6.8%

Net Margin 4.6%

Company Info

Sector Energy

Industry Oil & Gas Integrated

Employees 43039

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Chevron Corporation at $173.63.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $173.63, the stock trades at a 262% premium to its Graham Number of $48.00. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	28.4%▼	31.8%
Operating Margin %	6.8%▼	8.8%
Net Income %	4.6%▼	6.0%
Diluted EPS	1.11▼	1.39

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$329.6B	$324.0B	N/A
Total Debt	$45.4B▲	$40.8B•	N/A
Working Capital	$4.0B▼	$5.2B•	N/A
Years to Pay Debt	20.56	14.71	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$1.5B▼	$5.5B•	N/A
Owner Earnings	$12.2B	$14.0B	N/A
CapEx % of Net Income	183.8%	190.0%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Normalized EBITDA	10,183,000	10,924,000
Net Income From Continuing Operation Net Minority Interest	2,210,000	2,770,000
Reconciled Depreciation	5,892,000	5,964,000
Reconciled Cost Of Revenue	34,073,000	31,232,000
EBITDA	10,183,000	10,924,000
EBIT	4,291,000	4,960,000
Net Interest Income	-345,000	-361,000
Interest Expense	345,000	361,000
Normalized Income	2,210,000	2,770,000
Net Income From Continuing And Discontinued Operation	2,210,000	2,770,000
Total Expenses	44,334,000	41,764,000
Diluted Average Shares	1,985,900	1,996,984
Basic Average Shares	1,980,146	1,990,448
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	2,210,000	2,770,000
Net Income Common Stockholders	2,210,000	2,770,000
Net Income	2,210,000	2,770,000
Minority Interests	-83,000	-75,000
Net Income Including Noncontrolling Interests	2,293,000	2,845,000
Net Income Continuous Operations	2,293,000	2,845,000
Tax Provision	1,653,000	1,754,000
Pretax Income	3,946,000	4,599,000
Other Income Expense	1,069,000	937,000
Other Non Operating Income Expenses	324,000	274,000
Earnings From Equity Interest	745,000	663,000
Net Non Operating Interest Income Expense	-345,000	-361,000
Interest Expense Non Operating	345,000	361,000
Operating Income	3,222,000	4,023,000
Operating Expense	10,261,000	10,532,000
Other Operating Expenses	7,881,000	7,713,000
Other Taxes	1,314,000	1,327,000
Selling General And Administration	1,066,000	1,492,000
Gross Profit	13,483,000	14,555,000
Cost Of Revenue	34,073,000	31,232,000
Total Revenue	47,556,000	45,787,000
Operating Revenue	47,556,000	45,787,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	451,079	462,428
Ordinary Shares Number	1,991,598	1,980,248
Share Issued	2,442,677	2,442,677
Net Debt	40,105,000	33,020,000
Total Debt	45,428,000	40,758,000
Tangible Book Value	179,147,000	181,882,000
Invested Capital	229,143,000	225,763,000
Working Capital	3,984,000	5,165,000
Net Tangible Assets	179,147,000	181,882,000
Capital Lease Obligations		1,445,000	604,000
Common Stock Equity	183,715,000	186,450,000
Total Capitalization	223,315,000	225,572,000
Total Equity Gross Minority Interest	189,371,000	192,176,000
Minority Interest	5,656,000	5,726,000
Stockholders Equity	183,715,000	186,450,000
Gains Losses Not Affecting Retained Earnings	-2,833,000	-2,704,000
Other Equity Adjustments	-2,593,000	8,000
Foreign Currency Translation Adjustments		-199,000	-259,000
Minimum Pension Liabilities	-240,000	-2,509,000
Unrealized Gain Loss		-4,000	-19,000
Treasury Stock	53,209,000	51,929,000
Retained Earnings	204,039,000	205,365,000
Additional Paid In Capital	33,886,000	33,886,000
Capital Stock	1,832,000	1,832,000
Common Stock	1,832,000	1,832,000
Total Liabilities Net Minority Interest	140,180,000	131,836,000
Total Non Current Liabilities Net Minority Interest	98,004,000	98,449,000
Other Non Current Liabilities	24,536,000	24,543,000
Employee Benefits	3,923,000	4,111,000
Non Current Deferred Liabilities	29,945,000	30,014,000
Non Current Deferred Taxes Liabilities	29,945,000	30,014,000
Long Term Debt And Capital Lease Obligation	39,600,000	39,781,000
Long Term Capital Lease Obligation		659,000	546,000
Long Term Debt	39,600,000	39,122,000
Current Liabilities	42,176,000	33,387,000
Current Debt And Capital Lease Obligation	5,828,000	977,000
Current Capital Lease Obligation		786,000	58,000
Current Debt	5,828,000	191,000
Other Current Borrowings		191,000	4,348,000
Payables And Accrued Expenses	36,348,000	32,410,000
Current Accrued Expenses	10,349,000	10,763,000
Payables	25,999,000	21,647,000
Total Tax Payable	2,818,000	2,367,000
Income Tax Payable	1,312,000	844,000
Accounts Payable	23,181,000	19,280,000
Total Assets	329,551,000	324,012,000
Total Non Current Assets	283,391,000	285,460,000
Other Non Current Assets	16,471,000	16,261,000
Non Current Accounts Receivable	976,000	1,035,000
Investments And Advances	43,227,000	43,867,000
Goodwill And Other Intangible Assets	4,568,000	4,568,000
Goodwill	4,568,000	4,568,000
Net PPE	218,149,000	219,729,000
Accumulated Depreciation	-220,774,000	-215,226,000
Gross PPE	438,923,000	434,955,000
Current Assets	46,160,000	38,552,000
Other Current Assets	5,023,000	4,469,000
Inventory	10,554,000	9,711,000
Finished Goods	7,988,000	7,211,000
Raw Materials	2,566,000	2,500,000
Receivables	25,256,000	18,075,000
Accounts Receivable	25,256,000	18,075,000
Allowance For Doubtful Accounts Receivable	-175,000	-176,000
Gross Accounts Receivable	25,431,000	18,251,000
Cash Cash Equivalents And Short Term Investments	5,327,000	6,297,000
Other Short Term Investments	4,000	4,000
Cash And Cash Equivalents	5,323,000	6,293,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-1,549,000	5,525,000
Repurchase Of Capital Stock	-2,572,000	-2,998,000
Repayment Of Debt	-1,730,000	-3,197,000
Issuance Of Debt	6,372,000	2,273,000
Capital Expenditure	-4,063,000	-5,264,000
Interest Paid Supplemental Data	292,000	369,000
Income Tax Paid Supplemental Data	1,512,000	1,780,000
End Cash Position	6,316,000	7,285,000
Beginning Cash Position	7,285,000	8,783,000
Effect Of Exchange Rate Changes	-23,000	17,000
Changes In Cash	-946,000	-1,515,000
Financing Cash Flow	-448,000	-7,372,000
Cash Flow From Continuing Financing Activities	-448,000	-7,372,000
Net Other Financing Charges	-152,000	-103,000
Proceeds From Stock Option Exercised	1,160,000	57,000
Cash Dividends Paid	-3,526,000	-3,404,000
Common Stock Dividend Paid	-3,526,000	-3,404,000
Net Common Stock Issuance	-2,572,000	-2,998,000
Common Stock Payments	-2,572,000	-2,998,000
Net Issuance Payments Of Debt	4,642,000	-924,000
Net Short Term Debt Issuance	5,417,000	-242,000
Short Term Debt Payments	-856,000	-2,279,000
Short Term Debt Issuance	6,273,000	2,037,000
Net Long Term Debt Issuance	-775,000	-682,000
Long Term Debt Payments	-874,000	-918,000
Long Term Debt Issuance	99,000	236,000
Investing Cash Flow	-3,012,000	-4,932,000
Cash Flow From Continuing Investing Activities	-3,012,000	-4,932,000
Net Other Investing Changes	1,008,000	277,000
Net Investment Purchase And Sale		-1,000	0
Sale Of Investment		3,000	2,000
Purchase Of Investment		-4,000	-2,000
Net Business Purchase And Sale	43,000	56,000
Sale Of Business	43,000	56,000
Purchase Of Business	0	0
Capital Expenditure Reported	-4,063,000	-5,264,000
Operating Cash Flow	2,514,000	10,789,000
Cash Flow From Continuing Operating Activities	2,514,000	10,789,000
Dividend Received Cfo	345,000	1,143,000
Change In Working Capital	-4,524,000	1,502,000
Change In Other Working Capital	43,000	-128,000
Change In Payables And Accrued Expense	3,905,000	782,000
Change In Payable	3,905,000	782,000
Change In Account Payable	3,460,000	724,000
Change In Tax Payable	445,000	58,000
Change In Income Tax Payable	445,000	58,000
Change In Prepaid Assets	-488,000	266,000
Change In Inventory	-843,000	818,000
Change In Receivables	-7,141,000	-236,000
Changes In Account Receivables	-7,199,000	-189,000
Other Non Cash Items	-640,000	-420,000
Deferred Tax	-264,000	277,000
Deferred Income Tax	-264,000	277,000
Depreciation Amortization Depletion	5,892,000	5,964,000
Depletion	84,000	80,000
Depreciation And Amortization	5,808,000	5,884,000
Depreciation	5,808,000	5,884,000
Operating Gains Losses	-588,000	-522,000
Earnings Losses From Equity Investments	-745,000	-663,000
Net Foreign Currency Exchange Gain Loss	157,000	141,000
Net Income From Continuing Operations	2,293,000	2,845,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $46.1B ▲ $47.6B +3.2%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 29.0% ▲ 28.4% -0.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 7.0% ▼ 6.8% -0.2pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 7.6% ▼ 4.6% -2.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$47.6B/qtr (≈$190.2B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.09x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$1.5B

vs Positive

Operating Cash Flow

$2.5B

Latest quarter · Buffett's cash reality check

ROIC

0.9%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.8x

Net Assets: $189.4B

Asset Context — Oil & Gas Integrated

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

Peers & Industry Comparison

Oil & Gas Integrated — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
CVX	$173.63	$345.8B	30.20	28.4%	4.6%	$47.6B
XOM Exxon Mobil Corporation	$137.81	$571.2B	23.2	29.8%	7.8%	$326.0B
BP BP p.l.c.	$39.10	$100.7B	31.8	28.9%	1.7%	$193.0B
SHEL Shell PLC	$78.81	$218.5B	12.3	25.9%	7.0%	$267.3B
TTE TotalEnergies SE	$80.43	$178.9B	11.9	38.4%	8.2%	$184.0B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

4.73%

Moderate — some alignment with shareholders

Return on Equity (ROE)

1.2%

Weak — poor returns on equity

Return on Assets (ROA)

0.7%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$12.1B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+11.5% YoY

Debt is growing — management is leveraging up

Leadership Team

Michael Wirth

Chairman & CEO

Age 64

Pay: $7,846,953

0.355% of net income

Eimear Bonner

Chief Financial Officer

Age 50

Pay: $2,753,975

0.125% of net income

Mark Nelson

Vice Chairman & Executive VP of Oil, Products and Gas

Age 62

Pay: $3,476,435

0.157% of net income

Robert Clay Neff

President of Upstream

Age 63

Pay: $5,451,007

0.247% of net income

Frank Mount

President of Corporate Business Development

Top Institutional Holders

Institution	% Owned	Shares
State Street Corporation	7.69%	153,137,916
Blackrock Inc.	7.27%	144,720,031
Vanguard Capital Management LLC	6.15%	122,484,427
Berkshire Hathaway, Inc	4.24%	84,375,856
Geode Capital Management, LLC	2.19%	43,677,102
Vanguard Portfolio Management LLC	2.12%	42,313,738
Morgan Stanley	1.85%	36,847,021
Charles Schwab Investment Management, Inc.	1.81%	36,118,480

Risk Analysis

Beta (Market Risk)

0.47

Low volatility — more stable than the market

Short Interest

1.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.24x

Conservative balance sheet — low financial risk

Current Ratio

1.09x

Adequate liquidity

52-Week Price Range

Low: $142.40 Current: $173.63 High: $214.71

Currently at 43% of 52-week range

Chevron Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis