Money and Finance
As mentioned in my previous post, I'm going to try and have 1 stock analysis report for some popular dividend growth stocks come out prior to their latest earnings release this week. Today we'll look at Chevron Corporation (CVX). Chevron closed on Wednesday 7/25/12 at $106.06.
Company Background:
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and processing, transportation, storage, and marketing of natural gas, as well as holds an interest in a gas-to-liquids project. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products primarily under the Chevron, Texaco, and Caltex names; transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals, plastics for industrial uses, and additives for fuel and lubricant additives. The company is also involved in coal and molybdenum mining operations; cash management and debt financing activities; insurance operations; real estate activities; and energy services, and alternative fuels and technology businesses, as well as manages interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts.
DCF Valuation:
Analysts expect Chevron to grow earnings 1.17% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $166.27. This means that at $106.06 the shares are undervalued by 36.2%.
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Money and Finance
Chevron Stock Analysis
As mentioned in my previous post, I'm going to try and have 1 stock analysis report for some popular dividend growth stocks come out prior to their latest earnings release this week. Today we'll look at Chevron Corporation (CVX). Chevron closed on Wednesday 7/25/12 at $106.06.
Company Background:
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and processing, transportation, storage, and marketing of natural gas, as well as holds an interest in a gas-to-liquids project. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products primarily under the Chevron, Texaco, and Caltex names; transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals, plastics for industrial uses, and additives for fuel and lubricant additives. The company is also involved in coal and molybdenum mining operations; cash management and debt financing activities; insurance operations; real estate activities; and energy services, and alternative fuels and technology businesses, as well as manages interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts.
DCF Valuation:
Analysts expect Chevron to grow earnings 1.17% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $166.27. This means that at $106.06 the shares are undervalued by 36.2%.
Read more »
- Exxonmobil Stock Analysis
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- Recent Buy - Chevron (cvx)
I recently picked up another 10 shares of the energy giant Chevron after their recent dividend increase announcement. In an effort to balance my monthly dividend totals I had been trying to choose a stock to purchase for the end of the quarter. I already...
- Recent Buy - Chevron (cvx)
Recently added to my position in Chevron. I purchased another 9 shares at $120.90 giving me a total of 19 shares. The stock has been dropping a little recently from the $125 range on some earnings and productivity concerns and in this market I'm happy...
- Recent Buy - Chevron (cvx)
Today I opened a position in Chevron. I purchased 10 shares at $121.47 giving my portfolio it's 20th position. Chevron has been under some selling pressure as it approached their 2nd quarter earnings and continued to drop after a disappointing 2nd...
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