VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - NYSE:VLO - US91913Y1001 - Common Stock
170.82 USD
-9.51 (-5.27%)
170.82 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to VLO. VLO was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. VLO has a great financial health rating, but its profitability evaluates not so good. 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
VLO had positive earnings in the past year.
VLO had a positive operating cash flow in the past year.
Of the past 5 years VLO 4 years were profitable.
Each year in the past 5 years VLO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VLO (2.54%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.26%, VLO is in line with its industry, outperforming 46.67% of the companies in the same industry.
The Return On Invested Capital of VLO (5.59%) is comparable to the rest of the industry.
VLO had an Average Return On Invested Capital over the past 3 years of 18.62%. This is below the industry average of 21.66%.
The last Return On Invested Capital (5.59%) 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 | 2.54% | ||
| ROE | 6.26% | ||
| ROIC | 5.59% |
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
VLO has a Profit Margin of 1.21%. This is in the lower half of the industry: VLO underperforms 63.33% of its industry peers.
VLO's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 2.51%, VLO is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
VLO's Operating Margin has declined in the last couple of years.
VLO's Gross Margin of 3.38% is on the low side compared to the rest of the industry. VLO is outperformed by 75.71% of its industry peers.
In the last couple of years the Gross Margin of VLO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.51% | ||
| PM (TTM) | 1.21% | ||
| GM | 3.38% |
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.
Compared to 5 years ago, VLO has less shares outstanding
VLO has a better debt/assets ratio than last year.
2.2 Solvency
VLO has an Altman-Z score of 4.54. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.54, VLO belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
VLO has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as VLO would need 2.67 years to pay back of all of its debts.
VLO's Debt to FCF ratio of 2.67 is fine compared to the rest of the industry. VLO outperforms 79.05% of its industry peers.
VLO has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
VLO has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.54 |
ROIC/WACC0.67
WACC8.31%
2.3 Liquidity
VLO has a Current Ratio of 1.60. This is a normal value and indicates that VLO is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.60, VLO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
A Quick Ratio of 1.09 indicates that VLO should not have too much problems paying its short term obligations.
The Quick ratio of VLO (1.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
VLO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.42%.
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.
Looking at the last year, VLO shows a decrease in Revenue. The Revenue has decreased by -8.52% in the last year.
The Revenue has been growing slightly by 3.70% on average over the past years.
EPS 1Y (TTM)-33.42%
EPS 3Y50.45%
EPS 5Y8.76%
EPS Q2Q%221.05%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%
3.2 Future
VLO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.48% yearly.
Based on estimates for the next years, VLO will show a decrease in Revenue. The Revenue will decrease by -2.51% on average per year.
EPS Next Y17.86%
EPS Next 2Y17.98%
EPS Next 3Y11.65%
EPS Next 5Y13.48%
Revenue Next Year-6.74%
Revenue Next 2Y-6.58%
Revenue Next 3Y-2.78%
Revenue Next 5Y-2.51%
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 accelerating.
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
Based on the Price/Earnings ratio of 22.87, the valuation of VLO can be described as rather expensive.
VLO's Price/Earnings ratio is in line with the industry average.
VLO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.77, the valuation of VLO can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as VLO.
VLO is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
VLO's Enterprise Value to EBITDA ratio is in line with 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 65.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.4 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.28
PEG (5Y)2.61
EPS Next 2Y17.98%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, VLO has a reasonable but not impressive dividend return.
VLO's Dividend Yield is comparable with the industry average which is at 5.90.
Compared to an average S&P500 Dividend Yield of 2.44, VLO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 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
94.09% of the earnings are spent on dividend by VLO. This is not a sustainable payout ratio.
VLO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP94.09%
EPS Next 2Y17.98%
EPS Next 3Y11.65%
170.82
-9.51 (-5.27%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-4.23%
Ins Owners0.36%
Ins Owner Change-0.1%
Market Cap53.07B
Revenue(TTM)123.07B
Net Income(TTM)1.49B
Analysts77.6
Price Target183.19 (7.24%)
Short Float %3.67%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend4.27
Dividend Growth(5Y)3.43%
DP94.09%
Div Incr Years2
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.42%
Min EPS beat(2)18.81%
Max EPS beat(2)30.02%
EPS beat(4)4
Avg EPS beat(4)248.14%
Min EPS beat(4)18.81%
Max EPS beat(4)834.33%
EPS beat(8)8
Avg EPS beat(8)130.8%
EPS beat(12)11
Avg EPS beat(12)89.81%
EPS beat(16)15
Avg EPS beat(16)73.1%
Revenue beat(2)2
Avg Revenue beat(2)7.15%
Min Revenue beat(2)6.57%
Max Revenue beat(2)7.72%
Revenue beat(4)4
Avg Revenue beat(4)4.9%
Min Revenue beat(4)0.84%
Max Revenue beat(4)7.72%
Revenue beat(8)6
Avg Revenue beat(8)2.36%
Revenue beat(12)7
Avg Revenue beat(12)1.45%
Revenue beat(16)11
Avg Revenue beat(16)5.87%
PT rev (1m)5.51%
PT rev (3m)14.62%
EPS NQ rev (1m)24.08%
EPS NQ rev (3m)75.23%
EPS NY rev (1m)15.6%
EPS NY rev (3m)42.8%
Revenue NQ rev (1m)2.54%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)1.73%
Revenue NY rev (3m)1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.87 | ||
| Fwd PE | 14.77 | ||
| P/S | 0.43 | ||
| P/FCF | 13.4 | ||
| P/OCF | 10.97 | ||
| P/B | 2.23 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)7.47
EY4.37%
EPS(NY)11.57
Fwd EY6.77%
FCF(TTM)12.75
FCFY7.46%
OCF(TTM)15.58
OCFY9.12%
SpS396.17
BVpS76.47
TBVpS76.47
PEG (NY)1.28
PEG (5Y)2.61
Graham Number113.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 6.26% | ||
| ROCE | 7.03% | ||
| ROIC | 5.59% | ||
| ROICexc | 6.27% | ||
| ROICexgc | 6.27% | ||
| OM | 2.51% | ||
| PM (TTM) | 1.21% | ||
| GM | 3.38% | ||
| FCFM | 3.22% |
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
ROICexgc growth 3Y17.52%
ROICexgc 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 Turnover2.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 28.92% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 5.67 | ||
| Cash Conversion | 79.02% | ||
| Profit Quality | 266.13% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 4.54 |
F-Score5
WACC8.31%
ROIC/WACC0.67
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)-33.42%
EPS 3Y50.45%
EPS 5Y8.76%
EPS Q2Q%221.05%
EPS Next Y17.86%
EPS Next 2Y17.98%
EPS Next 3Y11.65%
EPS Next 5Y13.48%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%
Revenue Next Year-6.74%
Revenue Next 2Y-6.58%
Revenue Next 3Y-2.78%
Revenue Next 5Y-2.51%
EBIT growth 1Y-37.8%
EBIT growth 3Y20.8%
EBIT growth 5Y0.04%
EBIT Next Year79.86%
EBIT Next 3Y30.19%
EBIT Next 5Y19.46%
FCF growth 1Y-64.05%
FCF growth 3Y11.26%
FCF growth 5Y10.31%
OCF growth 1Y-59.96%
OCF growth 3Y4.48%
OCF growth 5Y3.86%
VALERO ENERGY CORP / VLO FAQ
Can you provide the ChartMill fundamental rating for VALERO ENERGY CORP?
ChartMill assigns a fundamental rating of 4 / 10 to VLO.
What is the valuation status for VLO stock?
ChartMill assigns a valuation rating of 4 / 10 to VALERO ENERGY CORP (VLO). This can be considered as Fairly Valued.
What is the profitability of VLO stock?
VALERO ENERGY CORP (VLO) has a profitability rating of 3 / 10.
What is the valuation of VALERO ENERGY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VALERO ENERGY CORP (VLO) is 22.87 and the Price/Book (PB) ratio is 2.23.
Can you provide the expected EPS growth for VLO stock?
The Earnings per Share (EPS) of VALERO ENERGY CORP (VLO) is expected to grow by 17.86% in the next year.