VALERO ENERGY CORP (VLO)
US91913Y1001 - Common Stock
We assign a fundamental rating of 5 out of 10 to VLO. VLO was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. VLO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. VLO has a valuation in line with the averages, but on the other hand it 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.
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
Looking at the Return On Assets, with a value of 6.10%, VLO is in line with its industry, outperforming 55.88% of the companies in the same industry.
VLO's Return On Equity of 14.58% is fine compared to the rest of the industry. VLO outperforms 60.29% of its industry peers.
VLO has a Return On Invested Capital (8.55%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VLO is significantly below the industry average of 29.03%.
The last Return On Invested Capital (8.55%) for VLO is well below the 3 year average (17.35%), which needs to be investigated, but indicates that VLO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 14.58% | ||
| ROIC | 8.55% |
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
VLO has a worse Profit Margin (2.74%) than 69.12% of its industry peers.
VLO's Profit Margin has improved in the last couple of years.
The Operating Margin of VLO (3.69%) is worse than 75.00% of its industry peers.
In the last couple of years the Operating Margin of VLO has grown nicely.
VLO has a Gross Margin of 4.50%. This is amonst the worse of the industry: VLO underperforms 80.39% of its industry peers.
VLO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.69% | ||
| PM (TTM) | 2.74% | ||
| GM | 4.5% |
OM growth 3YN/A
OM growth 5Y15.14%
PM growth 3YN/A
PM growth 5Y18%
GM growth 3YN/A
GM growth 5Y12.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VLO is creating value.
Compared to 1 year ago, VLO has less shares outstanding
VLO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VLO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.40 indicates that VLO is not in any danger for bankruptcy at the moment.
The Altman-Z score of VLO (4.40) is better than 87.25% of its industry peers.
VLO has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.80, VLO is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that VLO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, VLO is in line with its industry, outperforming 50.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 4.4 |
ROIC/WACC1.08
WACC7.93%
2.3 Liquidity
VLO has a Current Ratio of 1.57. 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 (1.57) is better than 63.24% 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.
Looking at the Quick ratio, with a value of 1.11, VLO is in line with its industry, outperforming 54.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| 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 -62.11%.
Measured over the past years, VLO shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.69% on average per year.
Looking at the last year, VLO shows a very negative growth in Revenue. The Revenue has decreased by -10.96% in the last year.
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-62.11%
EPS 3YN/A
EPS 5Y27.69%
EPS Q2Q%-84.78%
Revenue 1Y (TTM)-10.96%
Revenue growth 3Y30.65%
Revenue growth 5Y4.35%
Sales Q2Q%-14.39%
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 -16.43% yearly.
VLO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.54% yearly.
EPS Next Y-65.72%
EPS Next 2Y-38.18%
EPS Next 3Y-21.58%
EPS Next 5Y-16.43%
Revenue Next Year-10.04%
Revenue Next 2Y-7.13%
Revenue Next 3Y-3.76%
Revenue Next 5Y-5.54%
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.
4. Valuation
4.1 Price/Earnings Ratio
VLO is valuated reasonably with a Price/Earnings ratio of 10.57.
Compared to the rest of the industry, the Price/Earnings ratio of VLO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of VLO to the average of the S&P500 Index (27.20), we can say VLO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.56, the valuation of VLO can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, VLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.57 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
VLO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VLO indicates a somewhat cheap valuation: VLO is cheaper than 78.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.27 | ||
| EV/EBITDA | 5.59 |
4.3 Compensation for Growth
VLO's earnings are expected to decrease with -21.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-38.18%
EPS Next 3Y-21.58%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 3.60%.
VLO's Dividend Yield is comparable with the industry average which is at 7.14.
Compared to an average S&P500 Dividend Yield of 2.36, VLO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
The dividend of VLO has a limited annual growth rate of 5.08%.
VLO has paid a dividend for at least 10 years, which is 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 Years2
Div Non Decr Years14
5.3 Sustainability
37.79% of the earnings are spent on dividend by VLO. This is a low number and sustainable payout ratio.
DP37.79%
EPS Next 2Y-38.18%
EPS Next 3Y-21.58%
VALERO ENERGY CORP
NYSE:VLO (12/20/2024, 8:04:00 PM)
After market: 117.48 -1.11 (-0.94%)118.59
-0.34 (-0.29%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.81%
Inst Owner Change-1.6%
Ins Owners0.47%
Ins Owner Change-0.57%
Market Cap37.54B
Analysts76.67
Price Target155.65 (31.25%)
Short Float %4.51%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Dividend Growth(5Y)5.08%
DP37.79%
Div Incr Years2
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.13%
Min EPS beat(2)3.36%
Max EPS beat(2)14.9%
EPS beat(4)4
Avg EPS beat(4)13.45%
Min EPS beat(4)3.36%
Max EPS beat(4)18.91%
EPS beat(8)7
Avg EPS beat(8)10.64%
EPS beat(12)11
Avg EPS beat(12)14.75%
EPS beat(16)15
Avg EPS beat(16)29.92%
Revenue beat(2)2
Avg Revenue beat(2)2.99%
Min Revenue beat(2)1.41%
Max Revenue beat(2)4.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)4.56%
Revenue beat(8)3
Avg Revenue beat(8)-0.27%
Revenue beat(12)7
Avg Revenue beat(12)6.19%
Revenue beat(16)11
Avg Revenue beat(16)8.4%
PT rev (1m)-1.56%
PT rev (3m)-13%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-78.28%
EPS NY rev (1m)-2.58%
EPS NY rev (3m)-27.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.57 | ||
| Fwd PE | 12.56 | ||
| P/S | 0.28 | ||
| P/FCF | 6.27 | ||
| P/OCF | 5.48 | ||
| P/B | 1.49 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 5.59 |
EPS(TTM)11.22
EY9.46%
EPS(NY)9.44
Fwd EY7.96%
FCF(TTM)18.93
FCFY15.96%
OCF(TTM)21.64
OCFY18.25%
SpS424.96
BVpS79.77
TBVpS79.77
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 14.58% | ||
| ROCE | 11% | ||
| ROIC | 8.55% | ||
| ROICexc | 9.66% | ||
| ROICexgc | 9.66% | ||
| OM | 3.69% | ||
| PM (TTM) | 2.74% | ||
| GM | 4.5% | ||
| FCFM | 4.45% |
ROA(3y)11.47%
ROA(5y)7.23%
ROE(3y)29.06%
ROE(5y)18.14%
ROIC(3y)17.35%
ROIC(5y)N/A
ROICexc(3y)19.56%
ROICexc(5y)N/A
ROICexgc(3y)19.73%
ROICexgc(5y)N/A
ROCE(3y)22.34%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y17.7%
ROICexc growth 3YN/A
ROICexc growth 5Y17.45%
OM growth 3YN/A
OM growth 5Y15.14%
PM growth 3YN/A
PM growth 5Y18%
GM growth 3YN/A
GM growth 5Y12.67%
F-Score5
Asset Turnover2.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 31.09% | ||
| Cap/Sales | 0.64% | ||
| Interest Coverage | 8.79 | ||
| Cash Conversion | 88.69% | ||
| Profit Quality | 162.78% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 4.4 |
F-Score5
WACC7.93%
ROIC/WACC1.08
Cap/Depr(3y)56.98%
Cap/Depr(5y)67.08%
Cap/Sales(3y)1.01%
Cap/Sales(5y)1.53%
Profit Quality(3y)214.39%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-62.11%
EPS 3YN/A
EPS 5Y27.69%
EPS Q2Q%-84.78%
EPS Next Y-65.72%
EPS Next 2Y-38.18%
EPS Next 3Y-21.58%
EPS Next 5Y-16.43%
Revenue 1Y (TTM)-10.96%
Revenue growth 3Y30.65%
Revenue growth 5Y4.35%
Sales Q2Q%-14.39%
Revenue Next Year-10.04%
Revenue Next 2Y-7.13%
Revenue Next 3Y-3.76%
Revenue Next 5Y-5.54%
EBIT growth 1Y-66.17%
EBIT growth 3YN/A
EBIT growth 5Y20.14%
EBIT Next Year-43.57%
EBIT Next 3Y-12.12%
EBIT Next 5Y-8.95%
FCF growth 1Y-34.59%
FCF growth 3YN/A
FCF growth 5Y26%
OCF growth 1Y-37.32%
OCF growth 3Y113.53%
OCF growth 5Y16.12%