Shares look cheap and company is well-managed
- Chevron shares look inexpensive
- One of the best-run big energy companies
- Trades at 10.7 times projected 2024 earnings
- Yields 4.2% with plans to boost dividend by 8%
- Plans to buy back $20 billion of stock annually
- Lower-risk growth profile than peers
- 15% discount to average cash-flow multiple
- Total yield of about 12% after the Hess deal closes
Chevron, one of the best-run big energy companies, has seen a decline in its stock price in 2023. However, despite the underperformance, Chevron shares are considered inexpensive. The company’s projected 2024 earnings are trading at a multiple of 10.7 and it offers a dividend yield of 4.2%. Chevron also plans to boost its dividend by 8% in January and buy back $20 billion of stock annually. Analysts believe that Chevron has a lower-risk growth profile compared to its peers and is trading at a 15% discount to its average cash-flow multiple. After the Hess deal closes, Chevron is expected to have a total yield of about 12%. Overall, Chevron presents a compelling investment opportunity with its attractive valuation and strong management.
Public Companies: Chevron (CVX), Exxon Mobil (XOM), Hess (HES)
Private Companies:
Key People: Greg Buckley (Analyst at Adams Funds)
Factuality Level: 7
Justification: The article provides some relevant information about Chevron’s performance and stock price, as well as the reasons behind its underperformance in 2023. It also mentions the company’s plans for dividend increase and stock buybacks. However, the article lacks in-depth analysis and supporting data to fully evaluate the claims made about Chevron’s valuation and growth prospects. Additionally, the article includes some unnecessary background information and a promotional message about text-to-speech technology.
Noise Level: 3
Justification: The article provides a brief analysis of Chevron’s performance in 2023 and mentions some reasons for its underperformance. It also mentions the company’s valuation and plans for dividend increase and stock buybacks. However, the article lacks in-depth analysis, data, and evidence to support its claims. It also does not provide actionable insights or explore the consequences of Chevron’s decisions on stakeholders. Overall, the article contains some relevant information but lacks depth and rigor.
Financial Relevance: Yes
Financial Markets Impacted: Chevron
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses Chevron’s stock performance and valuation, indicating its relevance to financial markets. However, there is no mention of any extreme events or their impact.
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