VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLO - US91913Y1001 - Common Stock
178.99 USD
-6.29 (-3.39%)
VLO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 208 industry peers in the Oil, Gas & Consumable Fuels industry. No worries on liquidiy or solvency for VLO as it has an excellent financial health rating, but there are worries on the profitability. VLO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
VLO had positive earnings in the past year.
In the past year VLO had a positive cash flow from operations.
VLO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VLO had a positive operating cash flow.
1.2 Ratios
VLO has a Return On Assets (2.54%) which is comparable to the rest of the industry.
VLO has a Return On Equity of 6.26%. This is comparable to the rest of the industry: VLO outperforms 47.12% of its industry peers.
VLO has a Return On Invested Capital (5.59%) which is comparable to the rest of the industry.
VLO had an Average Return On Invested Capital over the past 3 years of 18.62%. This is below the industry average of 21.83%.
The 3 year average ROIC (18.62%) for VLO is well above the current ROIC(5.59%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 6.26% | ||
| ROIC | 5.59% |
ROA(3y)12.46%
ROA(5y)7.25%
ROE(3y)31.15%
ROE(5y)18.17%
ROIC(3y)18.62%
ROIC(5y)N/A
1.3 Margins
VLO has a worse Profit Margin (1.21%) than 63.94% of its industry peers.
In the last couple of years the Profit Margin of VLO has remained more or less at the same level.
VLO's Operating Margin of 2.51% is on the low side compared to the rest of the industry. VLO is outperformed by 70.19% of its industry peers.
VLO's Operating Margin has declined in the last couple of years.
VLO has a Gross Margin of 3.38%. This is in the lower half of the industry: VLO underperforms 75.96% of its industry peers.
In the last couple of years the Gross Margin of VLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.51% | ||
| PM (TTM) | 1.21% | ||
| GM | 3.38% |
OM growth 3Y15.66%
OM growth 5Y-3.52%
PM growth 3Y37.91%
PM growth 5Y-0.94%
GM growth 3Y10.46%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
VLO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VLO has less shares outstanding
The number of shares outstanding for VLO has been reduced compared to 5 years ago.
Compared to 1 year ago, VLO has an improved debt to assets ratio.
2.2 Solvency
VLO has an Altman-Z score of 4.55. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
VLO has a Altman-Z score of 4.55. This is amongst the best in the industry. VLO outperforms 88.46% of its industry peers.
VLO has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as VLO would need 2.67 years to pay back of all of its debts.
VLO has a Debt to FCF ratio of 2.67. This is in the better half of the industry: VLO outperforms 78.85% of its industry peers.
VLO has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.41, VLO is in line with its industry, outperforming 55.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.55 |
ROIC/WACC0.7
WACC8.04%
2.3 Liquidity
VLO has a Current Ratio of 1.60. This is a normal value and indicates that VLO is financially healthy and should not expect problems in meeting its short term obligations.
VLO has a Current ratio of 1.60. This is in the better half of the industry: VLO outperforms 69.23% of its industry peers.
VLO has a Quick Ratio of 1.09. This is a normal value and indicates that VLO is financially healthy and should not expect problems in meeting its short term obligations.
VLO has a Quick ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for VLO have decreased strongly by -33.42% in the last year.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
VLO shows a decrease in Revenue. In the last year, the revenue decreased by -8.52%.
Measured over the past years, VLO shows a small growth in Revenue. The Revenue has been growing by 3.70% on average per year.
EPS 1Y (TTM)-33.42%
EPS 3Y50.45%
EPS 5Y8.76%
EPS Q2Q%221.05%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%
3.2 Future
VLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.74% yearly.
Based on estimates for the next years, VLO will show a decrease in Revenue. The Revenue will decrease by -2.51% on average per year.
EPS Next Y22.82%
EPS Next 2Y25.28%
EPS Next 3Y17.15%
EPS Next 5Y13.74%
Revenue Next Year-6.76%
Revenue Next 2Y-7.38%
Revenue Next 3Y-2.95%
Revenue Next 5Y-2.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.96, the valuation of VLO can be described as rather expensive.
VLO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, VLO is valued at the same level.
VLO is valuated correctly with a Price/Forward Earnings ratio of 13.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLO is on the same level as its industry peers.
VLO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 13.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLO.
Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than 63.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.79 | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
VLO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VLO's earnings are expected to grow with 17.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)2.73
EPS Next 2Y25.28%
EPS Next 3Y17.15%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
VLO's Dividend Yield is comparable with the industry average which is at 3.91.
Compared to an average S&P500 Dividend Yield of 1.92, VLO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of VLO has a limited annual growth rate of 3.43%.
VLO has paid a dividend for at least 10 years, which is a reliable track record.
VLO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.43%
Div Incr Years2
Div Non Decr Years14
5.3 Sustainability
94.09% of the earnings are spent on dividend by VLO. This is not a sustainable payout ratio.
VLO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP94.09%
EPS Next 2Y25.28%
EPS Next 3Y17.15%
NYSE:VLO (1/12/2026, 2:48:02 PM)
178.99
-6.29 (-3.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.19%
Inst Owner Change0.09%
Ins Owners0.31%
Ins Owner Change-0.72%
Market Cap54.59B
Revenue(TTM)123.07B
Net Income(TTM)1.49B
Analysts75.2
Price Target189.64 (5.95%)
Short Float %4.08%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend4.27
Dividend Growth(5Y)3.43%
DP94.09%
Div Incr Years2
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.42%
Min EPS beat(2)18.81%
Max EPS beat(2)30.02%
EPS beat(4)4
Avg EPS beat(4)248.14%
Min EPS beat(4)18.81%
Max EPS beat(4)834.33%
EPS beat(8)8
Avg EPS beat(8)130.8%
EPS beat(12)11
Avg EPS beat(12)89.81%
EPS beat(16)15
Avg EPS beat(16)73.1%
Revenue beat(2)2
Avg Revenue beat(2)7.15%
Min Revenue beat(2)6.57%
Max Revenue beat(2)7.72%
Revenue beat(4)4
Avg Revenue beat(4)4.9%
Min Revenue beat(4)0.84%
Max Revenue beat(4)7.72%
Revenue beat(8)6
Avg Revenue beat(8)2.36%
Revenue beat(12)7
Avg Revenue beat(12)1.45%
Revenue beat(16)11
Avg Revenue beat(16)5.87%
PT rev (1m)-0.03%
PT rev (3m)9.23%
EPS NQ rev (1m)-3.55%
EPS NQ rev (3m)55.06%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)20.47%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.96 | ||
| Fwd PE | 13.72 | ||
| P/S | 0.44 | ||
| P/FCF | 13.79 | ||
| P/OCF | 11.28 | ||
| P/B | 2.3 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)7.47
EY4.17%
EPS(NY)13.04
Fwd EY7.29%
FCF(TTM)12.98
FCFY7.25%
OCF(TTM)15.87
OCFY8.86%
SpS403.5
BVpS77.88
TBVpS77.88
PEG (NY)1.05
PEG (5Y)2.73
Graham Number114.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 6.26% | ||
| ROCE | 7.03% | ||
| ROIC | 5.59% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.27% | ||
| OM | 2.51% | ||
| PM (TTM) | 1.21% | ||
| GM | 3.38% | ||
| FCFM | 3.22% |
ROA(3y)12.46%
ROA(5y)7.25%
ROE(3y)31.15%
ROE(5y)18.17%
ROIC(3y)18.62%
ROIC(5y)N/A
ROICexc(3y)20.98%
ROICexc(5y)N/A
ROICexgc(3y)21.17%
ROICexgc(5y)N/A
ROCE(3y)23.41%
ROCE(5y)N/A
ROICexgc growth 3Y17.52%
ROICexgc growth 5Y-0.99%
ROICexc growth 3Y17.62%
ROICexc growth 5Y-0.91%
OM growth 3Y15.66%
OM growth 5Y-3.52%
PM growth 3Y37.91%
PM growth 5Y-0.94%
GM growth 3Y10.46%
GM growth 5Y-3.09%
F-Score5
Asset Turnover2.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 28.92% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 5.67 | ||
| Cash Conversion | 79.02% | ||
| Profit Quality | 266.13% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 4.55 |
F-Score5
WACC8.04%
ROIC/WACC0.7
Cap/Depr(3y)44.8%
Cap/Depr(5y)55.94%
Cap/Sales(3y)0.76%
Cap/Sales(5y)1.3%
Profit Quality(3y)132.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.42%
EPS 3Y50.45%
EPS 5Y8.76%
EPS Q2Q%221.05%
EPS Next Y22.82%
EPS Next 2Y25.28%
EPS Next 3Y17.15%
EPS Next 5Y13.74%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%
Revenue Next Year-6.76%
Revenue Next 2Y-7.38%
Revenue Next 3Y-2.95%
Revenue Next 5Y-2.51%
EBIT growth 1Y-37.8%
EBIT growth 3Y20.8%
EBIT growth 5Y0.04%
EBIT Next Year101.95%
EBIT Next 3Y30.47%
EBIT Next 5Y19.41%
FCF growth 1Y-64.05%
FCF growth 3Y11.26%
FCF growth 5Y10.31%
OCF growth 1Y-59.96%
OCF growth 3Y4.48%
OCF growth 5Y3.86%
VALERO ENERGY CORP / VLO FAQ
Can you provide the ChartMill fundamental rating for VALERO ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to VLO.
Can you provide the valuation status for VALERO ENERGY CORP?
ChartMill assigns a valuation rating of 4 / 10 to VALERO ENERGY CORP (VLO). This can be considered as Fairly Valued.
What is the profitability of VLO stock?
VALERO ENERGY CORP (VLO) has a profitability rating of 3 / 10.
What are the PE and PB ratios of VALERO ENERGY CORP (VLO) stock?
The Price/Earnings (PE) ratio for VALERO ENERGY CORP (VLO) is 23.96 and the Price/Book (PB) ratio is 2.3.
Is the dividend of VALERO ENERGY CORP sustainable?
The dividend rating of VALERO ENERGY CORP (VLO) is 5 / 10 and the dividend payout ratio is 94.09%.