VALERO ENERGY CORP (VLO)
US91913Y1001 - Common Stock
Overall VLO gets a fundamental rating of 5 out of 10. We evaluated VLO against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While VLO has a great health rating, its profitability is only average at the moment. VLO is valued correctly, but it does not seem to be growing.
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.
VLO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VLO has a Return On Assets (6.10%) which is in line with its industry peers.
VLO has a Return On Equity of 14.58%. This is comparable to the rest of the industry: VLO outperforms 58.13% of its industry peers.
With a Return On Invested Capital value of 8.55%, VLO perfoms like the industry average, outperforming 56.65% of the companies in the same industry.
VLO had an Average Return On Invested Capital over the past 3 years of 17.35%. This is significantly below the industry average of 22.54%.
The 3 year average ROIC (17.35%) for VLO is well above the current ROIC(8.55%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 2.74%, VLO is doing worse than 69.95% of the companies in the same industry.
VLO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.69%, VLO is doing worse than 76.85% of the companies in the same industry.
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 81.28% of its industry peers.
In the last couple of years the Gross Margin of VLO has grown nicely.
| 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
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.
Compared to 5 years ago, VLO has less shares outstanding
The debt/assets ratio for VLO has been reduced compared to a year ago.
2.2 Solvency
VLO has an Altman-Z score of 4.53. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VLO (4.53) is better than 84.73% of its industry peers.
The Debt to FCF ratio of VLO is 1.80, which is an excellent value as it means it would take VLO, only 1.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VLO (1.80) is better than 80.30% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that VLO is not too dependend on debt financing.
VLO has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: VLO outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 4.53 |
ROIC/WACC1.07
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.57 indicates that VLO should not have too much problems paying its short term obligations.
VLO's Current ratio of 1.57 is fine compared to the rest of the industry. VLO outperforms 65.52% 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 54.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for VLO have decreased strongly by -62.11% in the last year.
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.
VLO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.96%.
Measured over the past years, VLO shows a small growth in Revenue. The Revenue has been growing by 4.35% on average per year.
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
The Earnings Per Share is expected to decrease by -13.09% on average over the next years. This is quite bad
Based on estimates for the next years, VLO will show a decrease in Revenue. The Revenue will decrease by -5.59% on average per year.
EPS Next Y-64.81%
EPS Next 2Y-37.22%
EPS Next 3Y-19.57%
EPS Next 5Y-13.09%
Revenue Next Year-9.48%
Revenue Next 2Y-5.32%
Revenue Next 3Y-2%
Revenue Next 5Y-5.59%
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.
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
VLO is valuated correctly with a Price/Earnings ratio of 12.58.
The rest of the industry has a similar Price/Earnings ratio as VLO.
The average S&P500 Price/Earnings ratio is at 28.96. VLO is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 14.49, VLO is valued correctly.
VLO's Price/Forward Earnings is on the same level as the industry average.
VLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 14.49 |
4.2 Price Multiples
VLO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than 77.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | 6.51 |
4.3 Compensation for Growth
A cheap valuation may be justified as VLO's earnings are expected to decrease with -19.57% in the coming years.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-37.22%
EPS Next 3Y-19.57%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 3.06%.
VLO's Dividend Yield is comparable with the industry average which is at 6.45.
Compared to an average S&P500 Dividend Yield of 2.23, VLO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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 Years1
Div Non Decr Years13
5.3 Sustainability
VLO pays out 37.79% of its income as dividend. This is a sustainable payout ratio.
DP37.79%
EPS Next 2Y-37.22%
EPS Next 3Y-19.57%
VALERO ENERGY CORP
NYSE:VLO (11/21/2024, 8:04:00 PM)
Premarket: 141.5 +0.39 (+0.28%)141.11
-0.09 (-0.06%)
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 Cap44.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 14.49 | ||
| 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)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 14.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.69% | ||
| PM (TTM) | 2.74% | ||
| GM | 4.5% | ||
| 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 Turnover2.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-62.11%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-64.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.96%
Revenue growth 3Y30.65%
Revenue growth 5Y
Sales 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