VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
NYSE:VLO - New York Stock Exchange, Inc. - US91913Y1001 - Common Stock
Taking everything into account, VLO scores 5 out of 10 in our fundamental rating. VLO was compared to 210 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 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.
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 56.31% of the companies in the same industry.
VLO has a better Return On Equity (14.58%) than 61.16% of its industry peers.
VLO's Return On Invested Capital of 8.55% is in line compared to the rest of the industry. VLO outperforms 58.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLO is significantly below the industry average of 28.71%.
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 Profit Margin of 2.74%. This is in the lower half of the industry: VLO underperforms 67.96% of its industry peers.
VLO's Profit Margin has improved in the last couple of years.
VLO has a worse Operating Margin (3.69%) than 74.27% of its industry peers.
In the last couple of years the Operating Margin of VLO has grown nicely.
Looking at the Gross Margin, with a value of 4.50%, VLO is doing worse than 79.61% of the companies in the same industry.
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
VLO has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VLO has less shares outstanding
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 4.52. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.52, VLO belongs to the best of the industry, outperforming 87.38% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.80, VLO is doing good in the industry, outperforming 79.61% of the companies in the same industry.
VLO has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
VLO has a Debt to Equity ratio (0.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 4.52 |
ROIC/WACC1.04
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.57 indicates that VLO should not have too much problems paying its short term obligations.
VLO has a better Current ratio (1.57) than 62.14% 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 52.91% 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.
VLO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.69% yearly.
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
The Earnings Per Share is expected to decrease by -16.43% 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 -5.54% on average per year.
EPS Next Y-65.72%
EPS Next 2Y-38.18%
EPS Next 3Y-21.58%
EPS Next 5Y-16.43%
Revenue Next Year-10.05%
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.
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
With a Price/Earnings ratio of 12.08, VLO is valued correctly.
VLO's Price/Earnings ratio is in line with the industry average.
VLO is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.35, VLO is valued correctly.
VLO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, VLO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VLO is on the same level as its industry peers.
77.18% of the companies in the same industry are more expensive than VLO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.16 | ||
| EV/EBITDA | 6.45 |
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)0.44
EPS Next 2Y-38.18%
EPS Next 3Y-21.58%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 3.24%.
VLO's Dividend Yield is comparable with the industry average which is at 6.39.
VLO's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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 (1/22/2025, 3:29:03 PM)
135.57
-3.96 (-2.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners83.81%
Inst Owner Change-0.4%
Ins Owners0.47%
Ins Owner Change-0.62%
Market Cap42.92B
Analysts76.67
Price Target154.58 (14.02%)
Short Float %4.84%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend4.12
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)-0.69%
PT rev (3m)-5.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-78.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.73%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 14.35 | ||
| P/S | 0.32 | ||
| P/FCF | 7.16 | ||
| P/OCF | 6.26 | ||
| P/B | 1.7 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)11.22
EY8.28%
EPS(NY)9.44
Fwd EY6.97%
FCF(TTM)18.93
FCFY13.96%
OCF(TTM)21.64
OCFY15.96%
SpS424.96
BVpS79.77
TBVpS79.77
PEG (NY)N/A
PEG (5Y)0.44
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 | 4.52 |
F-Score5
WACC8.22%
ROIC/WACC1.04
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-10.05%
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-44.8%
EBIT Next 3Y-13%
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%