VALERO ENERGY CORP (VLO)
US91913Y1001 - Common Stock
Taking everything into account, VLO scores 5 out of 10 in our fundamental rating. VLO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. VLO has an excellent financial health rating, but there are some minor concerns on its 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
In the past year VLO was profitable.
In the past year VLO had a positive cash flow from operations.
VLO had positive earnings in 4 of the past 5 years.
In the past 5 years VLO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 11.18%, VLO is doing good in the industry, outperforming 74.76% of the companies in the same industry.
VLO has a better Return On Equity (26.84%) than 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.88%, VLO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
VLO had an Average Return On Invested Capital over the past 3 years of 17.35%. This is significantly below the industry average of 30.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 26.84% | ||
| ROIC | 15.88% |
ROA(3y)11.47%
ROA(5y)7.23%
ROE(3y)29.06%
ROE(5y)18.14%
ROIC(3y)17.35%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.99%, VLO is not doing good in the industry: 64.76% of the companies in the same industry are doing better.
VLO's Profit Margin has improved in the last couple of years.
VLO's Operating Margin of 6.78% is on the low side compared to the rest of the industry. VLO is outperformed by 73.81% of its industry peers.
VLO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 7.57%, VLO is doing worse than 77.62% of the companies in the same industry.
VLO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.78% | ||
| PM (TTM) | 4.99% | ||
| GM | 7.57% |
OM growth 3YN/A
OM growth 5Y15.14%
PM growth 3YN/A
PM growth 5Y18%
GM growth 3YN/A
GM growth 5Y12.67%
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
Compared to 5 years ago, VLO has less shares outstanding
The debt/assets ratio for VLO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.81 indicates that VLO is not in any danger for bankruptcy at the moment.
VLO has a Altman-Z score of 4.81. This is amongst the best in the industry. VLO outperforms 86.67% of its industry peers.
The Debt to FCF ratio of VLO is 1.54, which is an excellent value as it means it would take VLO, only 1.54 years of fcf income to pay off all of its debts.
VLO has a better Debt to FCF ratio (1.54) than 80.95% of its industry peers.
VLO has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, VLO is in line with its industry, outperforming 53.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.54 | ||
| Altman-Z | 4.81 |
ROIC/WACC1.99
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.59 indicates that VLO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.59, VLO is doing good in the industry, outperforming 67.14% of the companies in the same industry.
VLO has a Quick Ratio of 1.10. 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 (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for VLO have decreased strongly by -39.97% in the last year.
VLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.69% yearly.
VLO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.93%.
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-39.97%
EPS 3YN/A
EPS 5Y27.69%
EPS Q2Q%-49.81%
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y30.65%
Revenue growth 5Y4.35%
Sales Q2Q%-0.06%
3.2 Future
The Earnings Per Share is expected to decrease by -13.09% on average over the next years. This is quite bad
Based on estimates for the next years, VLO will show a decrease in Revenue. The Revenue will decrease by -5.59% on average per year.
EPS Next Y-31.8%
EPS Next 2Y-23.17%
EPS Next 3Y-20.13%
EPS Next 5Y-13.09%
Revenue Next Year-7.82%
Revenue Next 2Y-6.11%
Revenue Next 3Y-6.85%
Revenue Next 5Y-5.59%
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 decreasing.
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
The Price/Earnings ratio is 9.06, which indicates a very decent valuation of VLO.
Compared to the rest of the industry, the Price/Earnings ratio of VLO indicates a somewhat cheap valuation: VLO is cheaper than 69.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. VLO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.91, the valuation of VLO can be described as reasonable.
VLO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of VLO to the average of the S&P500 Index (20.59), we can say VLO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
70.95% of the companies in the same industry are more expensive than VLO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than the industry average as 77.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.37 | ||
| EV/EBITDA | 4.69 |
4.3 Compensation for Growth
VLO's earnings are expected to decrease with -20.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.33
EPS Next 2Y-23.17%
EPS Next 3Y-20.13%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.88%.
VLO's Dividend Yield is comparable with the industry average which is at 5.93.
VLO's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of VLO has a limited annual growth rate of 5.08%.
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)5.08%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
20.43% of the earnings are spent on dividend by VLO. This is a low number and sustainable payout ratio.
DP20.43%
EPS Next 2Y-23.17%
EPS Next 3Y-20.13%
VALERO ENERGY CORP
NYSE:VLO (7/26/2024, 7:05:36 PM)
After market: 159.3 +0.18 (+0.11%)159.12
+2.12 (+1.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 10.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 26.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.78% | ||
| PM (TTM) | 4.99% | ||
| GM | 7.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-39.97%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-31.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y30.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y