Chevron Corp Return On Equity vs. Price To Sales
| CVX Stock | MXN 2,847 53.00 1.83% |
For Chevron Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chevron Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chevron Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chevron Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chevron Corp over time as well as its relative position and ranking within its peers.
Chevron |
Chevron Corp Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Chevron Corp's current stock value. Our valuation model uses many indicators to compare Chevron Corp value to that of its competitors to determine the firm's financial worth. Chevron Corp is rated second in return on equity category among its peers. It also is rated second in price to sales category among its peers fabricating about 122.48 of Price To Sales per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chevron Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chevron Corp's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Chevron Price To Sales vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Chevron Corp |
| = | 0.24 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Chevron Corp |
| = | 29.11 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Chevron Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Chevron Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chevron Corp will eventually generate negative long term returns. The profitability progress is the general direction of Chevron Corp's change in net profit over the period of time. It can combine multiple indicators of Chevron Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Chevron Corporation, through its subsidiaries, engages in integrated energy and chemicals operations worldwide. Chevron Corporation was founded in 1879 and is based in San Ramon, California. CHEVRON CORPORATION operates under Oil Gas Integrated classification in Mexico and is traded on Mexico Stock Exchange. It employs 42595 people.
Chevron Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Chevron Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Chevron Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Chevron Corp's important profitability drivers and their relationship over time.
Use Chevron Corp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chevron Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chevron Corp will appreciate offsetting losses from the drop in the long position's value.Chevron Corp Pair Trading
Chevron Corp Pair Trading Analysis
The ability to find closely correlated positions to Chevron Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chevron Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chevron Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chevron Corp to buy it.
The correlation of Chevron Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chevron Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chevron Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chevron Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Chevron Corp position
In addition to having Chevron Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Stores Thematic Idea Now
Stores
Companies providing different types of retail and wholesale services. The Stores theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Stores Theme or any other thematic opportunities.
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Additional Tools for Chevron Stock Analysis
When running Chevron Corp's price analysis, check to measure Chevron Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Chevron Corp is operating at the current time. Most of Chevron Corp's value examination focuses on studying past and present price action to predict the probability of Chevron Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Chevron Corp's price. Additionally, you may evaluate how the addition of Chevron Corp to your portfolios can decrease your overall portfolio volatility.