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Chevron Owner Earnings per Share (TTM)

: 19.42 (As of Jun. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Chevron's Owner Earnings per Share (TTM) ended in Jun. 2022 was $19.42. It's Price-to-Owner-Earnings ratio for today is 8.32.


The historical rank and industry rank for Chevron's Owner Earnings per Share (TTM) or its related term are showing as below:

CVX' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 5.4   Med: 12.74   Max: 476.64
Current: 8.31


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Chevron was 476.64. The lowest was 5.40. And the median was 12.74.


CVX's Price-to-Owner-Earnings is ranked worse than
54.15% of 458 companies
in the Oil & Gas industry
Industry Median: 7.53 vs CVX: 8.31

Chevron's Earnings per Share (Diluted) for the three months ended in Jun. 2022 was $5.95. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $14.99. It's PE Ratio ratio for today is 10.77.

Chevron's EPS without NRI for the three months ended in Jun. 2022 was $5.95. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $14.99. It's PE Ratio without NRI ratio for today is 10.77.


Chevron Owner Earnings per Share (TTM) Historical Data

The historical data trend for Chevron's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Chevron Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.98 9.37 9.79 -0.16 12.60

Chevron Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.58 8.30 12.60 15.06 19.42

Competitive Comparison

For the Oil & Gas Integrated subindustry, Chevron's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Chevron Owner Earnings per Share (TTM) Distribution

For the Oil & Gas industry and Energy sector, Chevron's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Chevron's Owner Earnings per Share (TTM) falls into.



Chevron Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Chevron's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 29,047
Depreciation, Depletion and Amortization 16,804
Change In Deferred Tax 2,227
5Y Average of Maintenance Capital Expenditure 9,340
Change In Working Capital -734
Shares Outstanding (Diluted Average) 1,957

1. Start with "Net Income" from income statement. Chevron's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was $29,047 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Chevron's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2022 was $16,804 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Chevron's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2022 was $2,227 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $9,340 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Chevron's 5-Year Average Maintenance Capital Expenditure = $9,340 Mil

5. "Change In Working Capital" is from cashflow statement. Chevron's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2022 was $-734 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Chevron's Shares Outstanding (Diluted Average) for the months ended in Jun. 2022 was 1957.109 Mil.

Chevron's Onwer Earnings Per Share for Jun. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 29047 +16804+2227
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-9340.432234333+-734)/1957.109
=19.42

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=161.48/19.42
=8.32

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Chevron Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Chevron's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Chevron Business Description

Chevron logo
Industry
GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Chevron Corp (NYSE:CVX) » Definitions » Owner Earnings per Share (TTM)
Address
6001 Bollinger Canyon Road, San Ramon, CA, USA, 94583-2324
Chevron is an integrated energy company with exploration, production, and refining operations worldwide. It is the second- largest oil company in the United States with production of 3.1 million of barrels of oil equivalent a day, including 7.7 million cubic feet a day of natural gas and 1.8 million of barrels of liquids a day. Production activities take place in North America, South America, Europe, Africa, Asia, and Australia. Its refineries are in the U.S. and Asia for total refining capacity of 1.8 million barrels of oil a day. Proven reserves at year-end 2021 stood at 11.3 billion barrels of oil equivalent, including 6.1 billion barrels of liquids and 30.9 trillion cubic feet of natural gas.
Executives
Bonner Eimear P officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Hewson Marillyn A director C/O CARPENTER TECHNOLOGY CORPORATION PO BOX 14662 READING PA 19612-4662
Inchausti David A officer: Vice Pres. and Comptroller 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Parfitt Colin E officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Morris Rhonda J officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Reed Debra L director 488 8TH AVENUE SAN DIEGO CA 92101
Umpleby Iii Donald J director 510 LAKE COOK ROAD SUITE 100 DEERFIELD IL 60015
Nelson Mark A officer: Vice President 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Frank John director C/O OAKTREE CAPITAL MANAGEMENT 333 SOUTH GRAND 28TH FLOOR LOS ANGELES CA 90071
Austin Wanda M director 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Moyo Dambisa F director 10200 S. DEANZA BOULEVARD CUPERTINO CA 95014
Ourada Jeanette L officer: Vice Pres. and Comptroller 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Thulin Inge G director 1250 5TH AVENUE SOUTH NAPLES FL 34102
Cummings Alexander B Jr director
Huntsman Jon M Jr director 500 HUNTSMAN WAY SALT LAKE CITY UT 84108

Chevron Headlines

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