Whatever service or product the company is offering, we are all affected by commodity prices more often than we know. Coffee, oranges, cotton, and beef are all traded on the markets and can dictate how much you are going to pay at the store. Now let us take a look at Chevron Corporation, ticker CVX, which operates in the Basic Materials, and if you see it from a different set of glasses and look at the other aspects of the business you will notice a lot of things. Without further due let’s take a look below on the numerous other functions necessary for investment decisions.
Now, since Chevron Corporation is heavily affected by something outside of their control, potentially, you want to ensure Chevron Corporation is in good health. The current price of Chevron Corporation is 117.03, with the 200 day simple moving average at 6.78%.
First you may want to take a look at the current debt to equity, which is 0.29, as this can give you a glance at the company’s well being regarding debt. The long term debt to equity number currently sits at . Going deeper, Chevron Corporation’s profit margin is 4.70%, indicating how much money the company earns per dollar of revenue earned. Gross margin is 44.40% and operating margin is . Fundamental health is key when investing in an industry that has the potential to be slightly more volatile than average.
Take a broader look now, Chevron Corporation’s performance year to date is -0.57%, giving you a current mood of this particular equity. Volatility this month is 1.03%, which compared to the average volume of 5090.52 can give you an idea of the movements of the company’s stock. The current target price is 116.91, which can give you an idea of where the stock may want to head in the future. However, this is dependent upon Chevron Corporation’s ability to maintain their financial health.
Looking forward with a company that is sensitive to commodity prices can be difficult to predict, but it is still worth trying to figure. The current P/E ratio for CVX is 37.96 and the forward looking P/E is 24.28. The earnings per share growth this is year has been -110.80% and is predicted to be 54.23% over the next five years. Be sure that your portfolio can handle these projected numbers because the last thing you want to do is compromise your current holdings.
To round out your research, the current dividend yield is 3.69% with a payout ratio of 138.90%. Return on equity comes in at 4.00% and this should help to point you in the right direction.
Moreover, Chevron Corporation may not help your current situation, but now that you have a better understanding, you will know when to act if the time comes. Do not let the Basic Materials sector scare you, but rather open your eyes to a whole new world of possibilities. Greater risk does typically mean greater reward, but you want to limit company specific risk while also being exposed to your desired industry. Decide if Chevron Corporation is a good fit for yourself and be sure to keep an open mind on everything.