VALERO ENERGY CORP (VLO) Fundamental Analysis & Valuation

NYSE:VLO • US91913Y1001

Current stock price

234.54 USD
-7.21 (-2.98%)
At close:
235.988 USD
+1.45 (+0.62%)
After Hours:

This VLO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. VLO Profitability Analysis

1.1 Basic Checks

  • In the past year VLO was profitable.
  • In the past year VLO had a positive cash flow from operations.
  • VLO had positive earnings in each of the past 5 years.
  • In the past 5 years VLO always reported a positive cash flow from operatings.
VLO Yearly Net Income VS EBIT VS OCF VS FCFVLO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 4.03%, VLO is in line with its industry, outperforming 55.50% of the companies in the same industry.
  • VLO has a Return On Equity of 9.85%. This is in the better half of the industry: VLO outperforms 60.29% of its industry peers.
  • With a decent Return On Invested Capital value of 7.67%, VLO is doing good in the industry, outperforming 70.33% of the companies in the same industry.
  • VLO had an Average Return On Invested Capital over the past 3 years of 11.41%. This is significantly below the industry average of 23.05%.
Industry RankSector Rank
ROA 4.03%
ROE 9.85%
ROIC 7.67%
ROA(3y)7.53%
ROA(5y)8.61%
ROE(3y)18.19%
ROE(5y)21.67%
ROIC(3y)11.41%
ROIC(5y)13.3%
VLO Yearly ROA, ROE, ROICVLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

1.3 Margins

  • VLO has a Profit Margin of 1.91%. This is in the lower half of the industry: VLO underperforms 60.77% of its industry peers.
  • In the last couple of years the Profit Margin of VLO has declined.
  • VLO has a Operating Margin of 3.51%. This is in the lower half of the industry: VLO underperforms 65.55% of its industry peers.
  • In the last couple of years the Operating Margin of VLO has declined.
  • VLO has a worse Gross Margin (4.43%) than 76.08% of its industry peers.
  • VLO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.51%
PM (TTM) 1.91%
GM 4.43%
OM growth 3Y-26.71%
OM growth 5YN/A
PM growth 3Y-33.58%
PM growth 5YN/A
GM growth 3Y-22.49%
GM growth 5YN/A
VLO Yearly Profit, Operating, Gross MarginsVLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4 6 8

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7

2. VLO Health Analysis

2.1 Basic Checks

  • VLO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • VLO has less shares outstanding than it did 1 year ago.
  • VLO has less shares outstanding than it did 5 years ago.
  • VLO has a worse debt/assets ratio than last year.
VLO Yearly Shares OutstandingVLO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
VLO Yearly Total Debt VS Total AssetsVLO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 4.97 indicates that VLO is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.97, VLO belongs to the top of the industry, outperforming 89.00% of the companies in the same industry.
  • The Debt to FCF ratio of VLO is 2.11, which is a good value as it means it would take VLO, 2.11 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of VLO (2.11) is better than 84.69% 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.
  • VLO's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. VLO outperforms 58.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 2.11
Altman-Z 4.97
ROIC/WACC0.92
WACC8.37%
VLO Yearly LT Debt VS Equity VS FCFVLO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • VLO has a Current Ratio of 1.65. 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 1.65. This is in the better half of the industry: VLO outperforms 69.86% of its industry peers.
  • VLO has a Quick Ratio of 1.11. 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 of 1.11. This is comparable to the rest of the industry: VLO outperforms 56.94% of its industry peers.
Industry RankSector Rank
Current Ratio 1.65
Quick Ratio 1.11
VLO Yearly Current Assets VS Current LiabilitesVLO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. VLO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 28.16% over the past year.
  • VLO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.61% yearly.
  • The Revenue has decreased by -5.54% in the past year.
  • The Revenue has been growing by 13.58% on average over the past years. This is quite good.
EPS 1Y (TTM)28.16%
EPS 3Y-28.61%
EPS 5YN/A
EPS Q2Q%496.87%
Revenue 1Y (TTM)-5.54%
Revenue growth 3Y-11.4%
Revenue growth 5Y13.58%
Sales Q2Q%-1.25%

3.2 Future

  • VLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.70% yearly.
  • Based on estimates for the next years, VLO will show a decrease in Revenue. The Revenue will decrease by -1.31% on average per year.
EPS Next Y14.04%
EPS Next 2Y9.68%
EPS Next 3Y14.94%
EPS Next 5Y24.7%
Revenue Next Year-5.84%
Revenue Next 2Y-2.47%
Revenue Next 3Y-1.05%
Revenue Next 5Y-1.31%

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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
VLO Yearly Revenue VS EstimatesVLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 50B 100B 150B
VLO Yearly EPS VS EstimatesVLO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 10 20 30

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3

4. VLO Valuation Analysis

4.1 Price/Earnings Ratio

  • VLO is valuated rather expensively with a Price/Earnings ratio of 22.02.
  • VLO's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.61, VLO is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 19.31, the valuation of VLO can be described as rather expensive.
  • VLO's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.79. VLO is around the same levels.
Industry RankSector Rank
PE 22.02
Fwd PE 19.31
VLO Price Earnings VS Forward Price EarningsVLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • VLO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 72.73% of the companies in the same industry are more expensive than VLO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.94
EV/EBITDA 10.47
VLO Per share dataVLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

  • VLO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as VLO's earnings are expected to grow with 14.94% in the coming years.
PEG (NY)1.57
PEG (5Y)N/A
EPS Next 2Y9.68%
EPS Next 3Y14.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. VLO Dividend Analysis

5.1 Amount

  • VLO has a Yearly Dividend Yield of 2.43%.
  • VLO's Dividend Yield is comparable with the industry average which is at 3.29.
  • Compared to an average S&P500 Dividend Yield of 1.89, VLO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

  • The dividend of VLO has a limited annual growth rate of 3.17%.
  • 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)3.17%
Div Incr Years2
Div Non Decr Years14
VLO Yearly Dividends per shareVLO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • VLO pays out 60.09% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of VLO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.09%
EPS Next 2Y9.68%
EPS Next 3Y14.94%
VLO Yearly Income VS Free CF VS DividendVLO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B
VLO Dividend Payout.VLO Dividend Payout, showing the Payout Ratio.VLO Dividend Payout.PayoutRetained Earnings

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VLO Fundamentals: All Metrics, Ratios and Statistics

VALERO ENERGY CORP

NYSE:VLO (3/25/2026, 8:04:00 PM)

After market: 235.988 +1.45 (+0.62%)

234.54

-7.21 (-2.98%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners87.6%
Inst Owner Change-0.78%
Ins Owners0.36%
Ins Owner Change1.5%
Market Cap70.13B
Revenue(TTM)122.69B
Net Income(TTM)2.34B
Analysts74.62
Price Target202.05 (-13.85%)
Short Float %4.53%
Short Ratio3.69
Dividend
Industry RankSector Rank
Dividend Yield 2.43%
Yearly Dividend4.58
Dividend Growth(5Y)3.17%
DP60.09%
Div Incr Years2
Div Non Decr Years14
Ex-Date02-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.3%
Min EPS beat(2)15.8%
Max EPS beat(2)18.81%
EPS beat(4)4
Avg EPS beat(4)43.51%
Min EPS beat(4)15.8%
Max EPS beat(4)109.4%
EPS beat(8)8
Avg EPS beat(8)130.41%
EPS beat(12)11
Avg EPS beat(12)90%
EPS beat(16)15
Avg EPS beat(16)72.02%
Revenue beat(2)2
Avg Revenue beat(2)6.91%
Min Revenue beat(2)6.57%
Max Revenue beat(2)7.24%
Revenue beat(4)4
Avg Revenue beat(4)6.5%
Min Revenue beat(4)4.47%
Max Revenue beat(4)7.72%
Revenue beat(8)7
Avg Revenue beat(8)3.48%
Revenue beat(12)8
Avg Revenue beat(12)2.47%
Revenue beat(16)11
Avg Revenue beat(16)4.43%
PT rev (1m)0.98%
PT rev (3m)6.51%
EPS NQ rev (1m)15.03%
EPS NQ rev (3m)-31.14%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)6.01%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)6.46%
Revenue NY rev (3m)1.9%
Valuation
Industry RankSector Rank
PE 22.02
Fwd PE 19.31
P/S 0.57
P/FCF 13.94
P/OCF 12.04
P/B 2.96
P/tB 3
EV/EBITDA 10.47
EPS(TTM)10.65
EY4.54%
EPS(NY)12.15
Fwd EY5.18%
FCF(TTM)16.82
FCFY7.17%
OCF(TTM)19.48
OCFY8.31%
SpS410.28
BVpS79.34
TBVpS78.06
PEG (NY)1.57
PEG (5Y)N/A
Graham Number137.88
Profitability
Industry RankSector Rank
ROA 4.03%
ROE 9.85%
ROCE 9.83%
ROIC 7.67%
ROICexc 8.58%
ROICexgc 8.67%
OM 3.51%
PM (TTM) 1.91%
GM 4.43%
FCFM 4.1%
ROA(3y)7.53%
ROA(5y)8.61%
ROE(3y)18.19%
ROE(5y)21.67%
ROIC(3y)11.41%
ROIC(5y)13.3%
ROICexc(3y)12.86%
ROICexc(5y)14.97%
ROICexgc(3y)12.99%
ROICexgc(5y)15.11%
ROCE(3y)14.62%
ROCE(5y)17.05%
ROICexgc growth 3Y-35.29%
ROICexgc growth 5YN/A
ROICexc growth 3Y-35.36%
ROICexc growth 5YN/A
OM growth 3Y-26.71%
OM growth 5YN/A
PM growth 3Y-33.58%
PM growth 5YN/A
GM growth 3Y-22.49%
GM growth 5YN/A
F-Score6
Asset Turnover2.12
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 2.11
Debt/EBITDA 1.29
Cap/Depr 25.21%
Cap/Sales 0.65%
Interest Coverage 8.09
Cash Conversion 77.99%
Profit Quality 215.14%
Current Ratio 1.65
Quick Ratio 1.11
Altman-Z 4.97
F-Score6
WACC8.37%
ROIC/WACC0.92
Cap/Depr(3y)30.54%
Cap/Depr(5y)45.77%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.88%
Profit Quality(3y)172.81%
Profit Quality(5y)213.43%
High Growth Momentum
Growth
EPS 1Y (TTM)28.16%
EPS 3Y-28.61%
EPS 5YN/A
EPS Q2Q%496.87%
EPS Next Y14.04%
EPS Next 2Y9.68%
EPS Next 3Y14.94%
EPS Next 5Y24.7%
Revenue 1Y (TTM)-5.54%
Revenue growth 3Y-11.4%
Revenue growth 5Y13.58%
Sales Q2Q%-1.25%
Revenue Next Year-5.84%
Revenue Next 2Y-2.47%
Revenue Next 3Y-1.05%
Revenue Next 5Y-1.31%
EBIT growth 1Y14.83%
EBIT growth 3Y-35.06%
EBIT growth 5YN/A
EBIT Next Year145.07%
EBIT Next 3Y38.35%
EBIT Next 5Y27.29%
FCF growth 1Y-12.92%
FCF growth 3Y-22.71%
FCF growth 5YN/A
OCF growth 1Y-12.82%
OCF growth 3Y-22.62%
OCF growth 5Y43.78%

VALERO ENERGY CORP / VLO Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for VALERO ENERGY CORP?

ChartMill assigns a fundamental rating of 5 / 10 to VLO.


Can you provide the valuation status for VALERO ENERGY CORP?

ChartMill assigns a valuation rating of 3 / 10 to VALERO ENERGY CORP (VLO). This can be considered as Overvalued.


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 22.02 and the Price/Book (PB) ratio is 2.96.


Is the dividend of VALERO ENERGY CORP sustainable?

The dividend rating of VALERO ENERGY CORP (VLO) is 6 / 10 and the dividend payout ratio is 60.09%.