VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - NYSE:VLO - US91913Y1001 - Common Stock
181.76 USD
+5.98 (+3.4%)
182.325 USD
+0.56 (+0.31%)
Overall VLO gets a fundamental rating of 4 out of 10. We evaluated VLO against 210 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VLO was profitable.
In the past year VLO had a positive cash flow from operations.
Of the past 5 years VLO 4 years were profitable.
In the past 5 years VLO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VLO (2.54%) is comparable to the rest of the industry.
VLO has a Return On Equity (6.26%) which is in line with its industry peers.
VLO has a Return On Invested Capital of 5.59%. This is comparable to the rest of the industry: VLO outperforms 50.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLO is below the industry average of 21.85%.
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
The Profit Margin of VLO (1.21%) is worse than 63.33% of its industry peers.
VLO's Profit Margin has been stable in the last couple of years.
VLO's Operating Margin of 2.51% is on the low side compared to the rest of the industry. VLO is outperformed by 69.52% 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 75.24% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VLO is creating value.
The number of shares outstanding for VLO has been reduced compared to 1 year ago.
VLO has less shares outstanding than it did 5 years ago.
VLO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.52 indicates that VLO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.52, VLO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.67, VLO is doing good in the industry, outperforming 79.05% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that VLO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, VLO perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.52 |
ROIC/WACC0.7
WACC7.98%
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 70.48% 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.
With a Quick ratio value of 1.09, VLO perfoms like the industry average, outperforming 55.71% of the companies in the same 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.
VLO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
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 13.48% yearly.
The Revenue is expected to decrease by -2.51% on average over the next years.
EPS Next Y17.86%
EPS Next 2Y17.98%
EPS Next 3Y11.65%
EPS Next 5Y13.48%
Revenue Next Year-6.74%
Revenue Next 2Y-6.58%
Revenue Next 3Y-2.78%
Revenue Next 5Y-2.51%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 24.33, which indicates a rather expensive current valuation of VLO.
Compared to the rest of the industry, the Price/Earnings ratio of VLO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.89, VLO is valued at the same level.
A Price/Forward Earnings ratio of 15.71 indicates a correct valuation of VLO.
The rest of the industry has a similar Price/Forward Earnings ratio as VLO.
The average S&P500 Price/Forward Earnings ratio is at 34.59. VLO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 15.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VLO is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than 67.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
VLO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.36
PEG (5Y)2.78
EPS Next 2Y17.98%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, VLO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.89, VLO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, VLO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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.
The dividend of VLO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP94.09%
EPS Next 2Y17.98%
EPS Next 3Y11.65%
181.76
+5.98 (+3.4%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-1.85%
Ins Owners0.36%
Ins Owner Change0.29%
Market Cap56.46B
Revenue(TTM)123.07B
Net Income(TTM)1.49B
Analysts77.6
Price Target183.19 (0.79%)
Short Float %3.86%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend4.27
Dividend Growth(5Y)3.43%
DP94.09%
Div Incr Years2
Div Non Decr Years14
Ex-Date
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)5.51%
PT rev (3m)14.62%
EPS NQ rev (1m)33.83%
EPS NQ rev (3m)78.74%
EPS NY rev (1m)15.6%
EPS NY rev (3m)42.8%
Revenue NQ rev (1m)1.85%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.33 | ||
| Fwd PE | 15.71 | ||
| P/S | 0.46 | ||
| P/FCF | 14.26 | ||
| P/OCF | 11.67 | ||
| P/B | 2.38 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 9.87 |
EPS(TTM)7.47
EY4.11%
EPS(NY)11.57
Fwd EY6.36%
FCF(TTM)12.75
FCFY7.01%
OCF(TTM)15.58
OCFY8.57%
SpS396.17
BVpS76.47
TBVpS76.47
PEG (NY)1.36
PEG (5Y)2.78
Graham Number113.37
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 | 4.52 |
F-Score5
WACC7.98%
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 Y17.86%
EPS Next 2Y17.98%
EPS Next 3Y11.65%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%
Revenue Next Year-6.74%
Revenue Next 2Y-6.58%
Revenue Next 3Y-2.78%
Revenue Next 5Y-2.51%
EBIT growth 1Y-37.8%
EBIT growth 3Y20.8%
EBIT growth 5Y0.04%
EBIT Next Year79.86%
EBIT Next 3Y30.19%
EBIT Next 5Y19.46%
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.
What is the valuation status for VLO stock?
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 is the valuation of VALERO ENERGY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VALERO ENERGY CORP (VLO) is 24.33 and the Price/Book (PB) ratio is 2.38.
Can you provide the expected EPS growth for VLO stock?
The Earnings per Share (EPS) of VALERO ENERGY CORP (VLO) is expected to grow by 17.86% in the next year.