NYSE:VLO stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Nov 21, 2023

Consider VALERO ENERGY CORP (NYSE:VLO) as a top value stock, identified by our stock screening tool. NYSE:VLO shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Valuation Insights: NYSE:VLO

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:VLO, the assigned 7 reflects its valuation:

Based on the Price/Earnings ratio of 4.21, the valuation of VLO can be described as very cheap.
VLO's Price/Earnings ratio is rather cheap when compared to the industry. VLO is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.44. VLO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.06, which indicates a very decent valuation of VLO.
66.82% of the companies in the same industry are more expensive than VLO, based on the Price/Forward Earnings ratio.
VLO is valuated cheaply when we compare the Price/Forward Earnings ratio to 19.53, which is the current average of the S&P500 Index.
VLO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VLO is cheaper than 86.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLO indicates a rather cheap valuation: VLO is cheaper than 87.10% of the companies listed in the same industry.
The decent profitability rating of VLO may justify a higher PE ratio.

Profitability Insights: NYSE:VLO

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:VLO has earned a 6 out of 10:

VLO has a better Return On Assets (16.95%) than 76.50% of its industry peers.
VLO has a Return On Equity of 41.23%. This is amongst the best in the industry. VLO outperforms 83.87% of its industry peers.
VLO's Return On Invested Capital of 25.90% is amongst the best of the industry. VLO outperforms 86.18% of its industry peers.
VLO's Profit Margin has improved in the last couple of years.
VLO's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of VLO has grown nicely.

Health Assessment of NYSE:VLO

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:VLO was assigned a score of 8 for health:

VLO has an Altman-Z score of 5.00. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
VLO has a Altman-Z score of 5.00. This is amongst the best in the industry. VLO outperforms 89.86% of its industry peers.
VLO has a debt to FCF ratio of 1.04. This is a very positive value and a sign of high solvency as it would only need 1.04 years to pay back of all of its debts.
VLO's Debt to FCF ratio of 1.04 is amongst the best of the industry. VLO outperforms 82.03% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that VLO is not too dependend on debt financing.
The Current ratio of VLO (1.51) is better than 64.98% of its industry peers.

Looking at the Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:VLO has achieved a 4 out of 10:

VLO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.14%, which is quite impressive.
The Earnings Per Share has been growing by 42.51% on average over the past years. This is a very strong growth
The Revenue has been growing by 13.42% on average over the past years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of VLO contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.