Chevron: Not Worth The Risks Here – Likely No Margin Of Safety


  • The CVX stock is still trading above our preferred entry points of $130s.
  • Even then, our number still suggests a notable premium of 36.8% against its historical share repurchases at an average price of $95 for the past 19 years.
  • Investors whom add at these levels must proceed with caution in our view, due to the potential underperformance through 2023.
  • With the ongoing Ukraine war, OPEC+ production cut, Russian export reduction through April, and China’s rapid reopening cadence, things may remain volatile for a while longer.

Free Climber Hangs One Handed On Sea Cliff Rock Face


CVX Has Been Delivering Stellar Returns To Loyal Shareholders

Chevron (NYSE:CVX) is a dividend aristocrat and the company recently announced a hike in the quarterly dividend by 6.3%, while tremendously tripling its share repurchase program to $75B.


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CVX 1Y EV/Revenue and P/E Valuations

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CVX 5Y Stock Price

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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