Is Chevron’s Stock a Buy Now?

December 26, 2012

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E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for Chevron is excellent. It’s further proof that this is a well-run company. The balance sheet is also in great shape, which we don’t see often in today’s world.

	Debt-To-Equity	Cash	Long-Term Debt
CVX	.09	$21.58 Billion	$12.34 Billion
BP	.41	$16.36 Billion	$49.08 Billion
XOM	.07	$13.26 Billion	$8.93 Billion

T = Technicals on the Stock Chart Are Strong

Chevron has outperformed Exxon Mobil and BP (NYSE:BP) over the past three years.

	1 Month	Year-To-Date	1 Year	3 Year
CVX	7.58%	6.98%	12.85%	58.38%
BP	4.97%	2.97%	6.33%	-17.39%
XOM	7.78%	-14.86%	-9.30%	34.44%

At $110.10, Chevron is currently trading above its 50-day SMA and 200-day SMA, but below its 100-day. It’s safe to say that a trading range has been established.

50-Day SMA	108.70
100-Day SMA	111.03
200-Day SMA	107.60

E = Earnings and Revenue Have Been Strong

Revenue and earnings have increased since 2009. This is a common theme for strong companies throughout the broader market.

	2007	2008	2009	2010	2011
Revenue ($)in billions	220.90	273.00	171.64	204.93	253.71
Diluted EPS ($)	8.77	11.67	5.24	9.48	13.44

Looking at the last quarter on a YoY basis, we see a decline in revenue and earnings. However, this shouldn’t rattle any potential investors.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in billions	64.43	59.98	60.70	62.61	58.04
Diluted EPS ($)	3.92	2.58	3.27	3.66	2.69

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