Welcome to Chevron Stock Investors' Page
Chevron Corporation (NYSE: CVX) is one of the largest US energy companies headquartered in San Ramon, California.
Chevron manages and invests I a variety of subsidiary businesses as an integrated oil company, but also is active
in coal mining, chemicals, and power generation. After the first half of 2009, Chevron stock had a market
capitalization of around $133 billion. Chevron Corporation stock has been hurt somewhat by lower oil prices and
squeezing margins in its refining business.
Other companies in CVX peer group, or its most direct competitors
include: Exxon (NYSE: XOM), ConocoPhillips (NYSE: COP), Marathon Oil Corporation (NYSE: MRO), Hess Corp (NYSE: HES), and Sunoco. Chevron stock made a strong statement in the Energy sector when it merged with Texaco in 2001 becoming ChevronTexaco. Four years later the company became simply known as Chevron, leaving the Texaco behind.
Long term, Chevron stock gives Energy investors a strong growth rate despite is older status among its peers. Analysts believe the stock's short term growth rate should be around 12% and long term growth rate at 7%. The ‘06 and ‘07 trailing price to earnings ranged from around 8 to 12 times earnings, while its forward price-to-earnings around 7.5-10 times forward earnings. The big risk to Chevron stock investors is the potential for a significant decline in the commodity price of oil.
With Chevron stock at a beta around 0.87 and a strong record of growth behind it, the equity is great as a swing trader or longer term investment. Some risks include the possibility of current and future litigation costing Chevron a significant amount of money. Chevron is often a target of environmentalists and eco-friendly groups on many fronts and they remain vulnerable in this area. Any stagnation of equity price is buoyed by a 2.75 dividend as of the end of the first quarter. Chevron stock remains a strong opportunity for long term oil and energy investors.
Looking at the net profit margin of Chevron of late, we see that it has bounced above its peers and the S&P 500 generally. Taking a wider look at things, however, the net profit margin of Chevron of 8.22 percent is below the industry average but nearly three times the net profit margin of its specific sector. The company pays significantly
more taxes than both the sector average and the industry average with an effective tax rate of 43.15 percent as Chevron's five year average.
