NYSE:VLO stands out as a stock that provides good value for the fundamentals it showcases.

Discover VALERO ENERGY CORP (NYSE:VLO), an undervalued stock highlighted by our stock screener. NYSE:VLO showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

ChartMill's Evaluation of Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:VLO scores a 7 out of 10:

• With a Price/Earnings ratio of 4.66, the valuation of VLO can be described as very cheap.
• Based on the Price/Earnings ratio, VLO is valued cheaper than 83.72% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 26.02. VLO is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 9.56 indicates a reasonable valuation of VLO.
• Based on the Price/Forward Earnings ratio, VLO is valued a bit cheaper than 62.79% of the companies in the same industry.
• VLO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VLO indicates a rather cheap valuation: VLO is cheaper than 80.47% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, VLO is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:VLO has earned a 5 out of 10:

• With a decent Return On Assets value of 16.95%, VLO is doing good in the industry, outperforming 78.14% of the companies in the same industry.
• The Return On Equity of VLO (41.23%) is better than 82.33% of its industry peers.
• With an excellent Return On Invested Capital value of 25.90%, VLO belongs to the best of the industry, outperforming 87.44% of the companies in the same industry.
• VLO's Profit Margin has improved in the last couple of years.
• VLO's Operating Margin has improved in the last couple of years.
• VLO's Gross Margin has improved in the last couple of years.

Unpacking NYSE:VLO's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:VLO has received a 7 out of 10:

• VLO has an Altman-Z score of 5.08. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.08, VLO belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
• VLO has a debt to FCF ratio of 1.04. This is a very positive value and a sign of high solvency as it would only need 1.04 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 1.04, VLO belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
• A Debt/Equity ratio of 0.39 indicates that VLO is not too dependend on debt financing.
• The Current ratio of VLO (1.51) is better than 63.72% of its industry peers.

Growth Insights: NYSE:VLO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:VLO boasts a 4 out of 10:

• VLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.14%, which is quite impressive.
• Measured over the past years, VLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.51% on average per year.
• Measured over the past years, VLO shows a quite strong growth in Revenue. The Revenue has been growing by 13.42% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of VLO contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.