VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
NYSE:VLO - US91913Y1001 - Common Stock
155.7 USD
-1.07 (-0.68%)
Overall VLO gets a fundamental rating of 4 out of 10. We evaluated VLO against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While VLO has a great health rating, there are worries on its profitability. VLO has a expensive valuation and it also 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.
Of the past 5 years VLO 4 years were profitable.
Each year in the past 5 years VLO had a positive operating cash flow.
1.2 Ratios
VLO's Return On Assets of 1.28% is on the low side compared to the rest of the industry. VLO is outperformed by 60.00% of its industry peers.
With a Return On Equity value of 3.15%, VLO is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
The Return On Invested Capital of VLO (3.70%) is worse than 63.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLO is below the industry average of 21.91%.
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 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
VLO has a Profit Margin of 0.61%. This is in the lower half of the industry: VLO underperforms 64.29% of its industry peers.
VLO's Profit Margin has been stable in the last couple of years.
The Operating Margin of VLO (1.68%) is worse than 71.90% of its industry peers.
In the last couple of years the Operating Margin of VLO has declined.
With a Gross Margin value of 2.54%, VLO is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
VLO's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for VLO has been reduced compared to 1 year ago.
VLO has less shares outstanding than it did 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 4.30 indicates that VLO is not in any danger for bankruptcy at the moment.
The Altman-Z score of VLO (4.30) is better than 88.10% 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.
Looking at the Debt to FCF ratio, with a value of 3.19, VLO is in the better half of the industry, outperforming 76.67% 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.
VLO has a Debt to Equity ratio of 0.43. This is comparable to the rest of the industry: VLO outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.3 |
ROIC/WACC0.44
WACC8.5%
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 has a better Current ratio (1.62) than 70.00% of its industry peers.
A Quick Ratio of 1.11 indicates that VLO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, VLO is in line with its industry, outperforming 60.00% of the companies in the same industry.
| 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%.
VLO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
The Revenue for VLO has decreased by -11.63% in the past year. This is quite bad
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
VLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.52% yearly.
The Revenue is expected to decrease by -3.58% on average over the next years.
EPS Next Y-3.4%
EPS Next 2Y9.41%
EPS Next 3Y15.61%
EPS Next 5Y15.52%
Revenue Next Year-8.49%
Revenue Next 2Y-6.1%
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
The Price/Earnings ratio is 31.45, which means the current valuation is very expensive for VLO.
Compared to the rest of the industry, the Price/Earnings ratio of VLO indicates a slightly more expensive valuation: VLO is more expensive than 61.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. VLO is around the same levels.
VLO is valuated correctly with a Price/Forward Earnings ratio of 15.65.
The rest of the industry has a similar Price/Forward Earnings ratio as VLO.
VLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.45 | ||
| Fwd PE | 15.65 |
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 ratio is a bit cheaper when compared to the industry. VLO is cheaper than 62.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.48 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
VLO's earnings are expected to grow with 15.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.59
EPS Next 2Y9.41%
EPS Next 3Y15.61%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.91%. Purely for dividend investing, there may be better candidates out there.
VLO's Dividend Yield is comparable with the industry average which is at 6.02.
VLO's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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
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 2Y9.41%
EPS Next 3Y15.61%
NYSE:VLO (9/8/2025, 12:21:02 PM)
155.7
-1.07 (-0.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners87.85%
Inst Owner Change-2.03%
Ins Owners0.36%
Ins Owner Change0.34%
Market Cap48.37B
Analysts76.67
Price Target159.61 (2.51%)
Short Float %4.17%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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)1.76%
PT rev (3m)8.22%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)22.14%
EPS NY rev (1m)17.05%
EPS NY rev (3m)17.31%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-6.09%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.45 | ||
| Fwd PE | 15.65 | ||
| P/S | 0.39 | ||
| P/FCF | 14.48 | ||
| P/OCF | 11.37 | ||
| P/B | 2.01 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)4.95
EY3.18%
EPS(NY)9.95
Fwd EY6.39%
FCF(TTM)10.75
FCFY6.91%
OCF(TTM)13.69
OCFY8.79%
SpS398.45
BVpS77.51
TBVpS77.51
PEG (NY)N/A
PEG (5Y)3.59
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 | 4.3 |
F-Score5
WACC8.5%
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 Y-3.4%
EPS Next 2Y9.41%
EPS Next 3Y15.61%
EPS Next 5Y15.52%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-13.34%
Revenue Next Year-8.49%
Revenue Next 2Y-6.1%
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 Year79.04%
EBIT Next 3Y31.22%
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%