VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VLO • US91913Y1001
181.43 USD
-1.06 (-0.58%)
At close: Jan 30, 2026
181.7 USD
+0.27 (+0.15%)
After Hours: 1/30/2026, 8:23:25 PM
VLO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of VLO is average, but there are quite some 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.
- 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 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of VLO (2.54%) is comparable to the rest of the industry.
- With a Return On Equity value of 6.26%, VLO perfoms like the industry average, outperforming 47.34% of the companies in the same industry.
- VLO has a Return On Invested Capital of 5.59%. This is comparable to the rest of the industry: VLO outperforms 49.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for VLO is below the industry average of 21.94%.
- 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
- Looking at the Profit Margin, with a value of 1.21%, VLO is doing worse than 63.77% 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.
- The Operating Margin of VLO (2.51%) is worse than 70.05% of its industry peers.
- In the last couple of years the Operating Margin of VLO has declined.
- VLO has a worse Gross Margin (3.38%) than 75.85% of its industry peers.
- VLO's Gross Margin has declined in the last couple of years.
| 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.
- There is no outstanding debt for VLO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 4.54 indicates that VLO is not in any danger for bankruptcy at the moment.
- The Altman-Z score of VLO (4.54) is better than 87.92% 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.
- The Debt to FCF ratio of VLO (2.67) is better than 78.74% 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 55.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.54 |
ROIC/WACC0.67
WACC8.38%
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.
- With a decent Current ratio value of 1.60, VLO is doing good in the industry, outperforming 68.60% of the companies in the same industry.
- 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.
- The Quick ratio of VLO (1.09) 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 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.
EPS 1Y (TTM)28.16%
EPS 3Y-28.61%
EPS 5YN/A
EPS Q2Q%496.87%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.25%
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 16.16% on average per year.
- VLO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.38% yearly.
EPS Next Y13.82%
EPS Next 2Y9.78%
EPS Next 3Y11.32%
EPS Next 5Y16.16%
Revenue Next Year-10.75%
Revenue Next 2Y-2.64%
Revenue Next 3Y-1.77%
Revenue Next 5Y-1.38%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.04, which indicates a rather expensive current valuation of VLO.
- The rest of the industry has a similar Price/Earnings ratio as VLO.
- The average S&P500 Price/Earnings ratio is at 28.30. VLO is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 14.97, VLO is valued correctly.
- 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 25.57, VLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.04 | ||
| Fwd PE | 14.97 |
4.2 Price Multiples
- VLO's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than the industry average as 67.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.97 | ||
| EV/EBITDA | 10.04 |
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)1.23
PEG (5Y)N/A
EPS Next 2Y9.78%
EPS Next 3Y11.32%
5. Dividend
5.1 Amount
- VLO has a Yearly Dividend Yield of 2.61%. Purely for dividend investing, there may be better candidates out there.
- VLO's Dividend Yield is comparable with the industry average which is at 3.73.
- VLO's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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 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
- 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 2Y9.78%
EPS Next 3Y11.32%
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 17.04 and the Price/Book (PB) ratio is 2.33.
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%.