CVX
Chevron Corporation
Energy · Oil & Gas Integrated · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 45.9/100 reflects a company with exceptional financial health offset by weak growth, modest profitability, inconsistent momentum, and a strained dividend payout ratio.
- The perfect financial health score driven by a 0.21 debt-to-equity ratio and $324 billion in assets provides a strong foundation, but it cannot fully compensate for the sharp declines in revenue, net income, and EPS in FY2025.
- The dividend factor received a mid-range score due to the tension between consistent per-share dividend growth and an unsustainable 103.7% payout ratio in FY2025.
Why Not Higher
- Broad-based contraction across revenue (-4.6%), net income (-30.4%), and diluted EPS (-31.8%) in FY2025 drove a very low growth sub-score, significantly pulling down the overall composite.
- Inconsistent quarterly momentum with net income falling to $2,210,000,000 in 2026Q1 from a peak of $3,539,000,000 in 2025Q3 prevented a higher momentum score, limiting the total rating.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from $193,414,000,000 in FY2024 to $184,432,000,000 in FY2025, a drop of 4.6%. Net income fell from $17,661,000,000 in FY2024 to $12,299,000,000 in FY2025, a decline of 30.4%, while diluted EPS dropped from $9.72 in FY2024 to $6.63 in FY2025, a decline of 31.8%.
The model penalized Chevron heavily for broad-based contraction across all three key growth metrics in FY2025, with the especially sharp declines in net income and EPS driving the low sub-score.
In FY2025, Chevron reported a net margin of 6.7% and a return on assets of 3.8%, both reflecting modest profitability relative to the scale of the business.
The model awarded a mid-range score, recognizing that while Chevron remains profitable, a 6.7% net margin and 3.8% return on assets in FY2025 indicate limited earnings efficiency relative to the full 20-point scale.
Chevron reported a debt-to-equity ratio of 0.21 in FY2025, indicating very low financial leverage, supported by a total asset base of $324,012,000,000 in FY2025.
The model awarded a perfect score, reflecting that an extremely low debt-to-equity ratio of 0.21 in FY2025 signals a conservatively financed balance sheet with substantial capacity to absorb financial stress.
Quarterly revenue moved from $44,375,000,000 in 2025Q2 up to $48,169,000,000 in 2025Q3, then declined to $45,787,000,000 in 2025Q4 before partially recovering to $47,556,000,000 in 2026Q1. Net income followed a similarly uneven path: $2,490,000,000 in 2025Q2, rising to $3,539,000,000 in 2025Q3, then falling to $2,770,000,000 in 2025Q4 and further to $2,210,000,000 in 2026Q1.
The model reflected an inconsistent momentum profile, with no sustained upward trend in either revenue or net income across the four most recent quarters, limiting the score to the lower-middle range.
Chevron's dividends per share have grown consistently from $5.68 in FY2022 to $6.04 in FY2023, $6.52 in FY2024, and $6.84 in FY2025, but the dividend payout ratio reached 103.7% in FY2025, meaning dividends paid exceeded net income for the year.
The model recognized the positive multi-year dividend growth trend while discounting the score significantly due to the unsustainable payout ratio of 103.7% in FY2025, which signals that current earnings alone are insufficient to cover the dividend.
Chevron is assigned to the Energy Security macro theme.
Although Chevron carries the Energy Security theme assignment, this designation did not translate into a positive score under the model's current methodology, which may reflect how theme-based scoring weights are applied at this time.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Chevron Corporation presents a mixed investment profile in FY2025, anchored by an exceptionally strong balance sheet with a debt-to-equity ratio of 0.21 and total assets of $324 billion, but weighed down by broad-based contraction in revenue (-4.6%), net income (-30.4%), and diluted EPS (-31.8%) year-over-year. Profitability remains modest, with a net margin of 6.7% and return on assets of 3.8%, while quarterly momentum has been inconsistent with no sustained upward trend. The dividend growth streak is a positive signal, but a payout ratio of 103.7% in FY2025 raises questions about near-term sustainability.
Plain English
Chevron has very little debt and a massive asset base, which is reassuring, but its profits dropped sharply in 2025 and it paid out more in dividends than it actually earned that year, making it a company worth watching carefully before committing.
Bull Case vs. Bear Case
Bull Case
- Chevron's debt-to-equity ratio of 0.21 in FY2025 reflects a conservatively financed balance sheet backed by $324 billion in total assets, providing substantial capacity to weather financial stress.
- Dividends per share have grown consistently from $5.68 in FY2022 to $6.84 in FY2025, demonstrating a multi-year commitment to returning capital to shareholders.
- Quarterly revenue showed partial recovery to $47,556,000,000 in 2026Q1 after a dip in 2025Q4, suggesting some resilience in the top line.
Bear Case
- Net income fell 30.4% year-over-year from $17,661,000,000 in FY2024 to $12,299,000,000 in FY2025, with diluted EPS dropping 31.8% from $9.72 to $6.63, signaling a significant deterioration in earnings power.
- The dividend payout ratio reached 103.7% in FY2025, meaning Chevron paid out more in dividends than it earned in net income, raising sustainability concerns if earnings do not recover.
- Quarterly net income declined from $3,539,000,000 in 2025Q3 to $2,210,000,000 in 2026Q1, indicating a downward drift in recent profitability with no clear inflection point.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in quarterly net income back toward or above the $3,539,000,000 level seen in 2025Q3 would signal improving earnings power and reduce dividend sustainability concerns.
- A meaningful improvement in net margin above the current 6.7% would indicate greater earnings efficiency and could support a more constructive view on profitability.
Bearish Triggers
- If the dividend payout ratio remains above 100% for another fiscal year, it would confirm that the dividend is structurally unsupported by current earnings, increasing financial risk.
- Continued quarterly revenue volatility without a clear upward trend would reinforce concerns about the lack of sustained business momentum.
Risk Profile
Very Low RiskChevron's risk profile is rated Very Low, primarily supported by its extremely low debt-to-equity ratio of 0.21 and a $324 billion total asset base in FY2025, which provide a strong buffer against financial stress. However, the inconsistent quarterly momentum, with net income ranging from $2,210,000,000 to $3,539,000,000 across recent quarters, introduces some operational uncertainty.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.