Is CVX a high-quality business?

AlphaMadera's AlphaQuality grade scores Chevron Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CVX compares to a Buffett-style quality bar.

What is Chevron Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CVX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CVX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CVX - Chevron Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $197.13 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

B- 65.7 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 46.2

5yr Avg ROIC 8.2% 51/100
Operating Margin Trend -0.45 pp/yr 35/100

Capital Efficiency

Weight: 10%

B 69.4

5yr Avg ROE 11.0% 65/100
5yr Share-Count CAGR -0.8% 78/100

Growth Quality

Weight: 5%

D 36.3

5yr Revenue CAGR 4.3% 55/100
5yr EPS CAGR -5.0% 10/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 25%

A- 84.4

5yr FCF Margin 11.3% 73/100
5yr FCF/NI Conversion 1.11x 98/100

Balance Sheet

Weight: 25%

A 88.1

Net Debt / EBITDA 0.97x 85/100
Interest Coverage (EBIT/Int) 17.22x 96/100
Altman Z-Score 3.26 84/100

Stability

Weight: 20%

D 35.0

EPS Volatility (σ/μ) 0.64 19/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 3/5 40/100

5 of 5 gurus held; 1 new buy; 2 added; 2 trimmed; 1 full exit.

Holders: 5 +1
Avg Δ position: -1.4%
New buys: 1
Full exits: 1

Dalio new
Laffont sold -100%
Greenblatt increased +66%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.