VALERO ENERGY CORP (VLO)

US91913Y1001 - Common Stock

167  -0.54 (-0.32%)

After market: 165.15 -1.85 (-1.11%)

Fundamental Rating

6

Taking everything into account, VLO scores 6 out of 10 in our fundamental rating. VLO was compared to 214 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 is valued correctly, but it does not seem to be growing.



6

1. Profitability

1.1 Basic Checks

VLO had positive earnings in the past year.
In the past year VLO had a positive cash flow from operations.
Of the past 5 years VLO 4 years were profitable.
In the past 5 years VLO always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 13.97%, VLO is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
The Return On Equity of VLO (33.43%) is better than 80.28% of its industry peers.
VLO has a better Return On Invested Capital (19.91%) than 86.39% of its industry peers.
VLO had an Average Return On Invested Capital over the past 3 years of 17.35%. This is significantly below the industry average of 45.80%.
The 3 year average ROIC (17.35%) for VLO is below the current ROIC(19.91%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.97%
ROE 33.43%
ROIC 19.91%
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 6.08%, VLO is not doing good in the industry: 68.54% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of VLO has grown nicely.
The Operating Margin of VLO (8.19%) is worse than 74.65% of its industry peers.
In the last couple of years the Operating Margin of VLO has grown nicely.
VLO's Gross Margin of 8.93% is on the low side compared to the rest of the industry. VLO is outperformed by 77.46% of its industry peers.
In the last couple of years the Gross Margin of VLO has grown nicely.
Industry RankSector Rank
OM 8.19%
PM (TTM) 6.08%
GM 8.93%
OM growth 3YN/A
OM growth 5Y15.14%
PM growth 3YN/A
PM growth 5Y18%
GM growth 3YN/A
GM growth 5Y12.67%

8

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.
The number of shares outstanding for VLO has been reduced compared to 1 year ago.
The number of shares outstanding for VLO has been reduced compared to 5 years ago.
The debt/assets ratio for VLO has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 5.01 indicates that VLO is not in any danger for bankruptcy at the moment.
The Altman-Z score of VLO (5.01) is better than 89.20% of its industry peers.
The Debt to FCF ratio of VLO is 1.39, which is an excellent value as it means it would take VLO, only 1.39 years of fcf income to pay off all of its debts.
VLO's Debt to FCF ratio of 1.39 is amongst the best of the industry. VLO outperforms 80.75% of its industry peers.
VLO has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.38, VLO perfoms like the industry average, outperforming 55.40% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.39
Altman-Z 5.01
ROIC/WACC2.4
WACC8.3%

2.3 Liquidity

VLO has a Current Ratio of 1.56. This is a normal value and indicates that VLO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VLO (1.56) is better than 67.61% 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 (1.11) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.56
Quick Ratio 1.11

2

3. Growth

3.1 Past

VLO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.58%.
The Earnings Per Share has been growing by 27.69% on average over the past years. This is a very strong growth
Looking at the last year, VLO shows a very negative growth in Revenue. The Revenue has decreased by -17.93% in the last year.
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-15.58%
EPS 3YN/A
EPS 5Y27.69%
EPS growth Q2Q-57.99%
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y30.65%
Revenue growth 5Y4.35%
Revenue growth Q2Q-15.17%

3.2 Future

VLO is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -27.95% yearly.
VLO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.15% yearly.
EPS Next Y-29.69%
EPS Next 2Y-23.93%
EPS Next 3Y-22.31%
EPS Next 5Y-27.95%
Revenue Next Year-8.65%
Revenue Next 2Y-7.04%
Revenue Next 3Y-7.41%
Revenue Next 5Y-7.15%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.76, the valuation of VLO can be described as very cheap.
VLO's Price/Earnings ratio is a bit cheaper when compared to the industry. VLO is cheaper than 77.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. VLO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.61 indicates a reasonable valuation of VLO.
Based on the Price/Forward Earnings ratio, VLO is valued a bit cheaper than 69.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, VLO is valued rather cheaply.
Industry RankSector Rank
PE 6.76
Fwd PE 9.61

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VLO is valued a bit cheaper than 74.18% of the companies in the same industry.
77.46% 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 6.61
EV/EBITDA 4.21

4.3 Compensation for Growth

The decent profitability rating of VLO may justify a higher PE ratio.
A cheap valuation may be justified as VLO's earnings are expected to decrease with -22.31% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-23.93%
EPS Next 3Y-22.31%

5

5. Dividend

5.1 Amount

VLO has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.79, VLO has a dividend in line with its industry peers.
VLO's Dividend Yield is comparable with the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 2.63%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.08%
Div Incr Years1
Div Non Decr Years13

5.3 Sustainability

VLO pays out 16.49% of its income as dividend. This is a sustainable payout ratio.
DP16.49%
EPS Next 2Y-23.93%
EPS Next 3Y-22.31%

VALERO ENERGY CORP

NYSE:VLO (4/24/2024, 7:04:00 PM)

After market: 165.15 -1.85 (-1.11%)

167

-0.54 (-0.32%)

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 Cap55.02B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.63%
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)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 RankSector Rank
PE 6.76
Fwd PE 9.61
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)0.24
Profitability
Industry RankSector Rank
ROA 13.97%
ROE 33.43%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.19%
PM (TTM) 6.08%
GM 8.93%
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 Turnover2.3
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.56
Quick Ratio 1.11
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)
Growth
EPS 1Y (TTM)-15.58%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-29.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y30.65%
Revenue growth 5Y
Revenue growth 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