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VALERO ENERGY CORP (VLO) Stock Fundamental Analysis

USA - NYSE:VLO - US91913Y1001 - Common Stock

171.05 USD
-2.08 (-1.2%)
Last: 10/24/2025, 8:04:00 PM
171.4 USD
+0.35 (+0.2%)
After Hours: 10/24/2025, 8:04:00 PM
Fundamental Rating

4

VLO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While VLO has a great health rating, there are worries on its profitability. VLO does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year VLO was profitable.
VLO had a positive operating cash flow in the past year.
VLO had positive earnings in 4 of the past 5 years.
VLO had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

VLO has a Return On Assets of 1.28%. This is in the lower half of the industry: VLO underperforms 61.14% of its industry peers.
VLO has a worse Return On Equity (3.15%) than 62.56% of its industry peers.
With a Return On Invested Capital value of 3.70%, VLO is not doing good in the industry: 63.51% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for VLO is below the industry average of 21.54%.
The last Return On Invested Capital (3.70%) for VLO is well below the 3 year average (18.62%), which needs to be investigated, but indicates that VLO had better years and this may not be a problem.
Industry RankSector 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
VLO Yearly ROA, ROE, ROICVLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

1.3 Margins

With a Profit Margin value of 0.61%, VLO is not doing good in the industry: 64.45% of the companies in the same industry are doing better.
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 (1.68%) is worse than 71.09% of its industry peers.
In the last couple of years the Operating Margin of VLO has declined.
VLO has a worse Gross Margin (2.54%) than 76.30% of its industry peers.
In the last couple of years the Gross Margin of VLO has declined.
Industry RankSector 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%
VLO Yearly Profit, Operating, Gross MarginsVLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2 -2 4 6 8

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VLO is creating value.
The number of shares outstanding for VLO has been reduced compared to 1 year ago.
Compared to 5 years ago, VLO has less shares outstanding
Compared to 1 year ago, VLO has an improved debt to assets ratio.
VLO Yearly Shares OutstandingVLO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
VLO Yearly Total Debt VS Total AssetsVLO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

VLO has an Altman-Z score of 4.39. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
VLO has a better Altman-Z score (4.39) than 87.68% of its industry peers.
The Debt to FCF ratio of VLO is 3.19, which is a good value as it means it would take VLO, 3.19 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.19, VLO is doing good in the industry, outperforming 76.78% of the companies in the same industry.
VLO has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VLO (0.43) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 3.19
Altman-Z 4.39
ROIC/WACC0.46
WACC8.09%
VLO Yearly LT Debt VS Equity VS FCFVLO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B 20B 25B

2.3 Liquidity

VLO has a Current Ratio of 1.62. This is a normal value and indicates that VLO is financially healthy and should not expect problems in meeting 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.
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 (1.11) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.11
VLO Yearly Current Assets VS Current LiabilitesVLO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

3

3. Growth

3.1 Past

VLO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.42%.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
VLO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.28%.
VLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.70% yearly.
EPS 1Y (TTM)-33.42%
EPS 3Y50.45%
EPS 5Y8.76%
EPS Q2Q%221.05%
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%

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 15.77% on average per year.
Based on estimates for the next years, VLO will show a decrease in Revenue. The Revenue will decrease by -2.51% on average per year.
EPS Next Y4.48%
EPS Next 2Y18.48%
EPS Next 3Y13.82%
EPS Next 5Y15.77%
Revenue Next Year-8.24%
Revenue Next 2Y-6.31%
Revenue Next 3Y-3.08%
Revenue Next 5Y-2.51%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
VLO Yearly Revenue VS EstimatesVLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 10 20

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.90, the valuation of VLO can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as VLO.
VLO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
A Price/Forward Earnings ratio of 14.66 indicates a correct valuation of VLO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLO is on the same level as its industry peers.
VLO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.9
Fwd PE 14.66
VLO Price Earnings VS Forward Price EarningsVLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

60.66% of the companies in the same industry are cheaper than VLO, based on the Enterprise Value to EBITDA ratio.
VLO's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 15.9
EV/EBITDA 12.05
VLO Per share dataVLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

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.
VLO's earnings are expected to grow with 13.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.11
PEG (5Y)2.61
EPS Next 2Y18.48%
EPS Next 3Y13.82%

5

5. Dividend

5.1 Amount

VLO has a Yearly Dividend Yield of 2.61%.
VLO's Dividend Yield is comparable with the industry average which is at 6.30.
VLO's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector 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
VLO Yearly Dividends per shareVLO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

183.27% 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.
DP183.27%
EPS Next 2Y18.48%
EPS Next 3Y13.82%
VLO Yearly Income VS Free CF VS DividendVLO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B
VLO Dividend Payout.VLO Dividend Payout, showing the Payout Ratio.VLO Dividend Payout.PayoutRetained Earnings

VALERO ENERGY CORP

NYSE:VLO (10/24/2025, 8:04:00 PM)

After market: 171.4 +0.35 (+0.2%)

171.05

-2.08 (-1.2%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)01-28 2026-01-28/amc
Inst Owners86.61%
Inst Owner Change-0.98%
Ins Owners0.36%
Ins Owner Change0.34%
Market Cap53.14B
Revenue(TTM)129.88B
Net Income(TTM)759.00M
Analysts78.33
Price Target173.62 (1.5%)
Short Float %3.6%
Short Ratio4.15
Dividend
Industry RankSector Rank
Dividend Yield 2.61%
Yearly Dividend4.27
Dividend Growth(5Y)3.43%
DP183.27%
Div Incr Years2
Div Non Decr Years14
Ex-Date07-31 2025-07-31 (1.13)
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)5.54%
PT rev (3m)10.69%
EPS NQ rev (1m)-6.81%
EPS NQ rev (3m)10.71%
EPS NY rev (1m)5.54%
EPS NY rev (3m)23.53%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)2.53%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)3.08%
Valuation
Industry RankSector Rank
PE 22.9
Fwd PE 14.66
P/S 0.43
P/FCF 15.9
P/OCF 12.49
P/B 2.21
P/tB 2.21
EV/EBITDA 12.05
EPS(TTM)7.47
EY4.37%
EPS(NY)11.67
Fwd EY6.82%
FCF(TTM)10.75
FCFY6.29%
OCF(TTM)13.69
OCFY8%
SpS398.45
BVpS77.51
TBVpS77.51
PEG (NY)5.11
PEG (5Y)2.61
Graham Number114.14
Profitability
Industry RankSector 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
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 Turnover2.08
Health
Industry RankSector 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 4.39
F-Score5
WACC8.09%
ROIC/WACC0.46
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 Y4.48%
EPS Next 2Y18.48%
EPS Next 3Y13.82%
EPS Next 5Y15.77%
Revenue 1Y (TTM)-10.28%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%
Revenue Next Year-8.24%
Revenue Next 2Y-6.31%
Revenue Next 3Y-3.08%
Revenue Next 5Y-2.51%
EBIT growth 1Y-73.82%
EBIT growth 3Y20.8%
EBIT growth 5Y0.04%
EBIT Next Year79.86%
EBIT Next 3Y30.19%
EBIT Next 5Y20.34%
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%

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 2 / 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 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 22.9 and the Price/Book (PB) ratio is 2.21.


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 4.48% in the next year.