ChevronXSWX:CVX -0.61%63 Return-on-Tangible-Equity is 4.87% as of Mar. 2026, which is 45% below its 10-year median of 8.78. GuruFocus rates XSWX:CVX with a GF Score™ of 63/100 and a GF Value™ of CHF123.10. The stock has 5 warning signs investors should review. Among 945 Oil & Gas companies, Chevron ranks worse than 50.58% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Chevron's annualized net income for the quarter that ended in Mar. 2026 was CHF6,960 Mil. Chevron's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF142,992 Mil. Therefore, Chevron's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.87%.
The historical rank and industry rank for Chevron's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:CVX'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.15 Med: 8.78 Max: 24.52
Current: 6.61
During the past 13 years, Chevron's highest Return-on-Tangible-Equity was 24.52%. The lowest was -4.15%. And the median was 8.78%.
XSWX:CVX's Return-on-Tangible-Equity is ranked worse than 50.58% of 945
companies
in the Oil & Gas industry
Industry Median: 6.74
vs XSWX:CVX: 6.61
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Chevron Return-on-Tangible-Equity Related Terms
Chevron Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Chevron's Return-on-Tangible-Equity 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.
XSWX:CVX vs XOM, NFG, DEC: Return-on-Tangible-Equity Comparison
For the Oil & Gas Integrated subindustry, Chevron's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Chevron's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chevron's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.87% mean?
Chevron (XSWX:CVX) has a Return-on-Tangible-Equity of 4.87% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chevron and its competitors. This is 45% below median its historical median of 8.78. According to the industry distribution chart, Chevron ranks #478 out of 945 companies in the Oil & Gas industry, placing it in the top 50.6%.
Is Chevron's Return-on-Tangible-Equity too high?
Chevron's current Return-on-Tangible-Equity of 4.87% is 45% below median its 10-year median of 8.78. The Oil & Gas industry median Return-on-Tangible-Equity is 6.74. Chevron's value of 4.87% is 27.7% below this industry median. Based on the distribution chart, Chevron ranks #478 out of 945 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Chevron has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Chevron's Return-on-Tangible-Equity compare to XOM and NFG?
According to the Oil & Gas industry distribution chart, Chevron ranks #478 out of 945 companies for Return-on-Tangible-Equity. This places Chevron in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.74. Chevron's value of 4.87% is 27.7% below this benchmark. While the company's 10-year median is 8.78 vs. the industry median of 6.74, Chevron has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.74, based on 945 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chevron's current Return-on-Tangible-Equity of 4.87% is 27.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chevron and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chevron's current Return-on-Tangible-Equity is 4.87%, which is 45% below median its own 10-year median of 8.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chevron stock overvalued right now?
Chevron (XSWX:CVX) has a current Return-on-Tangible-Equity of 4.87%. The stock's GF Value™ is CHF123.10, compared to a current price of CHF136.44 — trading 10.8% above its estimated fair value. The current Return-on-Tangible-Equity is 4.87%, which is 45% below median its 10-year median of 8.78 and 27.7% below the Oil & Gas industry median of 6.74. Chevron's overall GF Score™ is 63/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Chevron (XSWX:CVX), the current Return-on-Tangible-Equity is 4.87% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chevron (XSWX:CVX) Overvalued in 2026?
Based on GuruFocus' analysis, Chevron stock appears to be overvalued.
The current stock price of CHF136.44 is trading 10.8% above its estimated GF Value™ of CHF123.10.
Key valuation signals for XSWX:CVX:
Return-on-Tangible-Equity: 4.87% (45% below median its 10-year median of 8.78)
GF Value™: CHF123.10 vs. price of CHF136.44 (10.8% above fair value)
Industry Position: 27.7% below the Oil & Gas median (#478 of 945)
No single metric tells the full story. See the XSWX:CVX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 2025 worldwide net oil-equivalent production of 3.7 million barrels per day, including 8.5 billion cubic feet per day of natural gas and 2.3 million barrels of liquids per day. Production takes place in North America, South America, Europe, Africa, Asia, and Australia. The company's refining networks arelocated in the United States and Asia, with a total worldwide refining capacity of 1.8 million barrels of oil a day at year-end 2025. Net proved reserves at year-end 2025 stood at 10.6 billion barrels of oil equivalent, consisting of 5.7 billion barrels of liquids and 29.2 trillion cubic feet of natural gas.
63GF Score
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