VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - NYSE:VLO - US91913Y1001 - Common Stock
162.57 USD
+5 (+3.17%)
VLO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 is valued expensive and it does not seem to be growing.
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.
VLO had positive earnings in 4 of the past 5 years.
In the past 5 years VLO always reported a positive cash flow from operatings.
1.2 Ratios
VLO has a worse Return On Assets (1.28%) than 60.00% of its industry peers.
VLO's Return On Equity of 3.15% is on the low side compared to the rest of the industry. VLO is outperformed by 61.43% of its industry peers.
VLO has a worse Return On Invested Capital (3.70%) than 63.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLO is below the industry average of 21.90%.
The 3 year average ROIC (18.62%) for VLO is well above the current ROIC(3.70%). The reason for the recent decline needs to be investigated.
| 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
With a Profit Margin value of 0.61%, VLO is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
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.
In the last couple of years the Gross Margin of VLO has declined.
| 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.
VLO has less shares outstanding than it did 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
VLO has an Altman-Z score of 4.31. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
VLO has a Altman-Z score of 4.31. This is amongst the best in the industry. VLO outperforms 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.
The Debt to FCF ratio of VLO (3.19) is better than 76.67% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that VLO is not too dependend on debt financing.
VLO has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.31 |
ROIC/WACC0.45
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.62 indicates that VLO should not have too much problems paying its short term obligations.
The Current ratio of VLO (1.62) is better than 70.00% 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's Quick ratio of 1.11 is in line compared to the rest of the industry. VLO outperforms 60.00% of its industry peers.
| 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%.
Measured over the past years, VLO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.76% on average per year.
VLO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.63%.
Measured over the past years, VLO shows a small growth in Revenue. The Revenue has been growing by 3.70% on average per year.
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
The Earnings Per Share is expected to grow by 15.52% on average over the next years. This is quite good.
Based on estimates for the next years, VLO will show a decrease in Revenue. The Revenue will decrease by -3.58% on average per year.
EPS Next Y-3.4%
EPS Next 2Y9.41%
EPS Next 3Y15.61%
EPS Next 5Y15.52%
Revenue Next Year-8.76%
Revenue Next 2Y-6.32%
Revenue Next 3Y-2.65%
Revenue Next 5Y-3.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 32.84 indicates a quite expensive valuation of VLO.
Based on the Price/Earnings ratio, VLO is valued a bit more expensive than 60.95% of the companies in the same industry.
VLO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.27.
A Price/Forward Earnings ratio of 16.34 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 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
VLO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 11.08 |
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)3.75
EPS Next 2Y9.41%
EPS Next 3Y15.61%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.87%.
VLO's Dividend Yield is comparable with the industry average which is at 6.15.
VLO's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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
VLO pays out 183.27% of its income as dividend. This is not a sustainable payout ratio.
VLO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP183.27%
EPS Next 2Y9.41%
EPS Next 3Y15.61%
NYSE:VLO (9/16/2025, 3:47:10 PM)
162.57
+5 (+3.17%)
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 Cap50.50B
Analysts76.67
Price Target164.51 (1.19%)
Short Float %3.89%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)2.93%
PT rev (3m)11.54%
EPS NQ rev (1m)3.73%
EPS NQ rev (3m)23.89%
EPS NY rev (1m)17.05%
EPS NY rev (3m)17.31%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.84 | ||
| Fwd PE | 16.34 | ||
| P/S | 0.41 | ||
| P/FCF | 15.12 | ||
| P/OCF | 11.87 | ||
| P/B | 2.1 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 11.08 |
EPS(TTM)4.95
EY3.04%
EPS(NY)9.95
Fwd EY6.12%
FCF(TTM)10.75
FCFY6.62%
OCF(TTM)13.69
OCFY8.42%
SpS398.45
BVpS77.51
TBVpS77.51
PEG (NY)N/A
PEG (5Y)3.75
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 | 4.31 |
F-Score5
WACC8.25%
ROIC/WACC0.45
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-8.76%
Revenue Next 2Y-6.32%
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%