VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - NYSE:VLO - US91913Y1001 - Common Stock
157.77 USD
+1.38 (+0.88%)
157.77 USD
0 (0%)
Overall VLO gets a fundamental rating of 4 out of 10. We evaluated VLO against 211 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
VLO had positive earnings in the past year.
In the past year VLO had a positive cash flow from operations.
VLO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VLO had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.28%, VLO is doing worse than 61.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.15%, VLO is doing worse than 62.56% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.70%, VLO is doing worse than 63.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VLO is below the industry average of 21.53%.
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
With a Profit Margin value of 0.61%, VLO is not doing good in the industry: 64.45% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of VLO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 1.68%, VLO is doing worse than 71.09% of the companies in the same industry.
VLO's Operating Margin has declined in the last couple of years.
VLO's Gross Margin of 2.54% is on the low side compared to the rest of the industry. VLO is outperformed by 76.30% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VLO is creating value.
VLO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VLO has less shares outstanding
Compared to 1 year ago, VLO has an improved debt to assets ratio.
2.2 Solvency
VLO has an Altman-Z score of 4.30. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
VLO has a better Altman-Z score (4.30) than 86.73% 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.
VLO has a better Debt to FCF ratio (3.19) than 76.78% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that VLO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, VLO perfoms like the industry average, outperforming 52.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 4.3 |
ROIC/WACC0.45
WACC8.18%
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 70.62% 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 57.82% 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%.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
The Revenue for VLO has decreased by -11.63% in the past year. This is quite bad
The Revenue has been growing slightly by 3.70% on average over the past years.
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
Based on estimates for the next years, VLO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.77% on average per year.
The Revenue is expected to decrease by -2.51% on average over the next years.
EPS Next Y1.95%
EPS Next 2Y14.06%
EPS Next 3Y15.9%
EPS Next 5Y15.77%
Revenue Next Year-8.33%
Revenue Next 2Y-6.47%
Revenue Next 3Y-2.91%
Revenue Next 5Y-2.51%
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 31.87 indicates a quite expensive valuation of VLO.
61.61% of the companies in the same industry are cheaper than VLO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.40, VLO is valued at the same level.
VLO is valuated correctly with a Price/Forward Earnings ratio of 14.59.
VLO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, VLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.87 | ||
| Fwd PE | 14.59 |
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 61.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.67 | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VLO's earnings are expected to grow with 15.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.33
PEG (5Y)3.64
EPS Next 2Y14.06%
EPS Next 3Y15.9%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.89%.
Compared to an average industry Dividend Yield of 6.15, VLO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, VLO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of VLO has a limited annual growth rate of 3.43%.
VLO has been paying a dividend for at least 10 years, so it has 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)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 2Y14.06%
EPS Next 3Y15.9%
157.77
+1.38 (+0.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.01%
Ins Owners0.36%
Ins Owner Change0.34%
Market Cap49.01B
Analysts78.33
Price Target173.62 (10.05%)
Short Float %4.08%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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)8.78%
PT rev (3m)18.28%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)18.43%
EPS NY rev (1m)5.54%
EPS NY rev (3m)23.53%
Revenue NQ rev (1m)1.7%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.87 | ||
| Fwd PE | 14.59 | ||
| P/S | 0.4 | ||
| P/FCF | 14.67 | ||
| P/OCF | 11.52 | ||
| P/B | 2.04 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 11 |
EPS(TTM)4.95
EY3.14%
EPS(NY)10.81
Fwd EY6.85%
FCF(TTM)10.75
FCFY6.82%
OCF(TTM)13.69
OCFY8.68%
SpS398.45
BVpS77.51
TBVpS77.51
PEG (NY)16.33
PEG (5Y)3.64
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
WACC8.18%
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 Y1.95%
EPS Next 2Y14.06%
EPS Next 3Y15.9%
EPS Next 5Y15.77%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-13.34%
Revenue Next Year-8.33%
Revenue Next 2Y-6.47%
Revenue Next 3Y-2.91%
Revenue Next 5Y-2.51%
EBIT growth 1Y-73.82%
EBIT growth 3Y20.8%
EBIT growth 5Y0.04%
EBIT Next Year79.86%
EBIT Next 3Y30.19%
EBIT Next 5Y20.34%
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%