p/e's been relatively low for years and years...the company argues that being integrated (i.e., having refining and marketing in addition to exploration and production) makes it stronger - but in fact this low-return "downstream" business is what drags the p/e down ...hard to believe that management gets away with this kind of thinking
biggest reason of low p/e over last 4 years or so is due to the massive 18 billion lawsuits against cvx. However, this clooud is finally lifting. The internatinal triburial has just recently ruled that CVX is not liable to this .
For CVX, it is not just low p/e that is making it very attractive. It is more importantly, the fact that a few massive projects are coming on stream over the nest 2-3 years. Expect oil and liqified natural gas wil add 10-15% to productions over the next 2-3 years. And, the decent 3.4% dividend will surely be incresed by at least 10% in 2014.
And, CVX is the only oil major who acturally has more cash at hand than its totaldebt. XOM used to be like CVX, but XOM has this massive sharebuy backs eating up their cah pile. CVX however is only bujying 1.25 billions $ share back a quater, instead focus on dividend increases.
Fundamental analysis will get you nowhere in this market. Take a look at all of the overhead supply in the CVX chart, this bounce will end soon. I'd be surprised to see it retake its 200 dma, let alone its 50 dma.