VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - NYSE:VLO - US91913Y1001 - Common Stock
170.503 USD
-5.13 (-2.92%)
Overall VLO gets a fundamental rating of 4 out of 10. We evaluated VLO against 211 industry peers in the Oil, Gas & Consumable Fuels industry. VLO has a great financial health rating, but its profitability evaluates not so good. VLO does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VLO had positive earnings in the past year.
VLO had a positive operating cash flow in the past year.
Of the past 5 years VLO 4 years were profitable.
VLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.28%, VLO is doing worse than 60.19% of the companies in the same industry.
VLO's Return On Equity of 3.15% is on the low side compared to the rest of the industry. VLO is outperformed by 61.61% of its industry peers.
VLO has a Return On Invested Capital of 3.70%. This is in the lower half of the industry: VLO underperforms 63.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLO is below the industry average of 21.71%.
The 3 year average ROIC (18.62%) for VLO is well above the current ROIC(3.70%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 3.15% | ||
| ROIC | 3.7% |
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
Looking at the Profit Margin, with a value of 0.61%, VLO is doing worse than 64.45% of the companies in the same industry.
In the last couple of years the Profit Margin of VLO has remained more or less at the same level.
VLO has a Operating Margin of 1.68%. This is in the lower half of the industry: VLO underperforms 71.56% of its industry peers.
In the last couple of years the Operating Margin of VLO has declined.
VLO has a Gross Margin of 2.54%. This is in the lower half of the industry: VLO underperforms 76.30% of its industry peers.
In the last couple of years the Gross Margin of VLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.68% | ||
| PM (TTM) | 0.61% | ||
| GM | 2.54% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VLO is creating value.
VLO has less shares outstanding than it did 1 year ago.
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 4.40. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
VLO has a Altman-Z score of 4.40. This is amongst the best in the industry. VLO outperforms 87.68% of its industry peers.
VLO has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as VLO would need 3.19 years to pay back of all of its debts.
The Debt to FCF ratio of VLO (3.19) is better than 77.25% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that VLO is not too dependend on debt financing.
The Debt to Equity ratio of VLO (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.44
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.62 indicates that VLO should not have too much problems paying its short term obligations.
VLO's Current ratio of 1.62 is fine compared to the rest of the industry. VLO outperforms 70.62% of its industry peers.
A Quick Ratio of 1.11 indicates that VLO should not have too much problems paying its short term obligations.
VLO has a Quick ratio of 1.11. This is in the better half of the industry: VLO outperforms 60.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
VLO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.83%.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
Looking at the last year, VLO shows a very negative growth in Revenue. The Revenue has decreased by -11.63% in the last year.
VLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.70% yearly.
EPS 1Y (TTM)-71.83%
EPS 3Y50.45%
EPS 5Y8.76%
EPS Q2Q%-15.87%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-13.34%
3.2 Future
Based on estimates for the next years, VLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.52% on average per year.
The Revenue is expected to decrease by -3.58% on average over the next years.
EPS Next Y1.95%
EPS Next 2Y14.06%
EPS Next 3Y15.9%
EPS Next 5Y15.52%
Revenue Next Year-8.76%
Revenue Next 2Y-6.32%
Revenue Next 3Y-2.65%
Revenue Next 5Y-3.58%
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.
4. Valuation
4.1 Price/Earnings Ratio
VLO is valuated quite expensively with a Price/Earnings ratio of 34.45.
Based on the Price/Earnings ratio, VLO is valued a bit more expensive than the industry average as 61.14% of the companies are valued more cheaply.
VLO is valuated rather expensively when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.77 indicates a correct valuation of VLO.
The rest of the industry has a similar Price/Forward Earnings ratio as VLO.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, VLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.45 | ||
| Fwd PE | 15.77 |
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.
VLO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.85 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VLO does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as VLO's earnings are expected to grow with 15.90% in the coming years.
PEG (NY)17.64
PEG (5Y)3.93
EPS Next 2Y14.06%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
VLO's Dividend Yield is comparable with the industry average which is at 5.98.
VLO's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of VLO has a limited annual growth rate of 3.43%.
VLO has been paying a dividend for at least 10 years, so it has a reliable track record.
VLO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.43%
Div Incr Years2
Div Non Decr Years14
5.3 Sustainability
VLO pays out 183.27% 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.
DP183.27%
EPS Next 2Y14.06%
EPS Next 3Y15.9%
NYSE:VLO (9/29/2025, 1:49:03 PM)
170.503
-5.13 (-2.92%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-2.03%
Ins Owners0.36%
Ins Owner Change0.34%
Market Cap52.97B
Analysts76.67
Price Target164.51 (-3.51%)
Short Float %3.89%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend4.27
Dividend Growth(5Y)3.43%
DP183.27%
Div Incr Years2
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)69.71%
Min EPS beat(2)30.02%
Max EPS beat(2)109.4%
EPS beat(4)4
Avg EPS beat(4)247.16%
Min EPS beat(4)14.9%
Max EPS beat(4)834.33%
EPS beat(8)7
Avg EPS beat(8)128.35%
EPS beat(12)11
Avg EPS beat(12)88.52%
EPS beat(16)15
Avg EPS beat(16)73.86%
Revenue beat(2)2
Avg Revenue beat(2)6.1%
Min Revenue beat(2)4.47%
Max Revenue beat(2)7.72%
Revenue beat(4)4
Avg Revenue beat(4)4.4%
Min Revenue beat(4)0.84%
Max Revenue beat(4)7.72%
Revenue beat(8)5
Avg Revenue beat(8)1.39%
Revenue beat(12)7
Avg Revenue beat(12)1.05%
Revenue beat(16)11
Avg Revenue beat(16)6.83%
PT rev (1m)3.07%
PT rev (3m)12.07%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)23.89%
EPS NY rev (1m)5.54%
EPS NY rev (3m)26.06%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.45 | ||
| Fwd PE | 15.77 | ||
| P/S | 0.43 | ||
| P/FCF | 15.85 | ||
| P/OCF | 12.45 | ||
| P/B | 2.2 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)4.95
EY2.9%
EPS(NY)10.81
Fwd EY6.34%
FCF(TTM)10.75
FCFY6.31%
OCF(TTM)13.69
OCFY8.03%
SpS398.45
BVpS77.51
TBVpS77.51
PEG (NY)17.64
PEG (5Y)3.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 3.15% | ||
| ROCE | 4.65% | ||
| ROIC | 3.7% | ||
| ROICexc | 4.12% | ||
| ROICexgc | 4.12% | ||
| OM | 1.68% | ||
| PM (TTM) | 0.61% | ||
| GM | 2.54% | ||
| FCFM | 2.7% |
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
ROICexcg growth 3Y17.52%
ROICexcg 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 Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 31.58% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 3.89 | ||
| Cash Conversion | 85.56% | ||
| Profit Quality | 440.18% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.4 |
F-Score5
WACC8.34%
ROIC/WACC0.44
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)-71.83%
EPS 3Y50.45%
EPS 5Y8.76%
EPS Q2Q%-15.87%
EPS Next Y1.95%
EPS Next 2Y14.06%
EPS Next 3Y15.9%
EPS Next 5Y15.52%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-13.34%
Revenue Next Year-8.76%
Revenue Next 2Y-6.32%
Revenue Next 3Y-2.65%
Revenue Next 5Y-3.58%
EBIT growth 1Y-73.82%
EBIT growth 3Y20.8%
EBIT growth 5Y0.04%
EBIT Next Year79.86%
EBIT Next 3Y30.19%
EBIT Next 5Y20.13%
FCF growth 1Y-64.86%
FCF growth 3Y11.26%
FCF growth 5Y10.31%
OCF growth 1Y-60.7%
OCF growth 3Y4.48%
OCF growth 5Y3.86%