VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - NYSE:VLO - US91913Y1001 - Common Stock
178.4 USD
-3.36 (-1.85%)
178.5 USD
+0.1 (+0.06%)
Overall VLO gets a fundamental rating of 4 out of 10. We evaluated VLO against 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 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
The Return On Assets of VLO (2.54%) is comparable to the rest of the industry.
With a Return On Equity value of 6.26%, VLO perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
VLO has a Return On Invested Capital of 5.59%. This is comparable to the rest of the industry: VLO outperforms 50.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLO is below the industry average of 21.71%.
The 3 year average ROIC (18.62%) for VLO is well above the current ROIC(5.59%). The reason for the recent decline needs to be investigated.
| 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 worse Profit Margin (1.21%) than 63.81% 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.
The Gross Margin of VLO (3.38%) is worse than 75.71% of its industry peers.
VLO's Gross Margin has declined in the last couple of years.
| 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
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.
The number of shares outstanding for VLO has been reduced compared to 5 years ago.
The debt/assets ratio for VLO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.53 indicates that VLO is not in any danger for bankruptcy at the moment.
VLO's Altman-Z score of 4.53 is amongst the best of the industry. VLO outperforms 89.52% of its industry peers.
The Debt to FCF ratio of VLO is 2.67, which is a good value as it means it would take VLO, 2.67 years of fcf income to pay off all of its debts.
VLO has a Debt to FCF ratio of 2.67. This is in the better half of the industry: VLO outperforms 79.05% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that VLO is not too dependend on debt financing.
VLO has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: VLO outperforms 54.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.53 |
ROIC/WACC0.67
WACC8.34%
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.
VLO's Current ratio of 1.60 is fine compared to the rest of the industry. VLO outperforms 69.52% of its industry peers.
VLO has a Quick Ratio of 1.09. 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 Quick ratio of 1.09. This is comparable to the rest of the industry: VLO outperforms 54.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for VLO have decreased strongly by -33.42% in the last year.
VLO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
The Revenue has decreased by -8.52% in the past year.
VLO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.70% yearly.
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.
VLO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.51% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 rather expensively with a Price/Earnings ratio of 23.88.
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 (25.56), we can say VLO is valued inline with the index average.
With a Price/Forward Earnings ratio of 15.42, VLO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of VLO to the average of the S&P500 Index (34.62), we can say VLO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 15.42 |
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.
Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.99 | ||
| EV/EBITDA | 10 |
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)1.34
PEG (5Y)2.73
EPS Next 2Y17.98%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.66%.
VLO's Dividend Yield is comparable with the industry average which is at 5.86.
VLO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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%
178.4
-3.36 (-1.85%)
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 Cap55.42B
Revenue(TTM)123.07B
Net Income(TTM)1.49B
Analysts77.6
Price Target183.19 (2.68%)
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 | 23.88 | ||
| Fwd PE | 15.42 | ||
| P/S | 0.45 | ||
| P/FCF | 13.99 | ||
| P/OCF | 11.45 | ||
| P/B | 2.33 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 10 |
EPS(TTM)7.47
EY4.19%
EPS(NY)11.57
Fwd EY6.48%
FCF(TTM)12.75
FCFY7.15%
OCF(TTM)15.58
OCFY8.73%
SpS396.17
BVpS76.47
TBVpS76.47
PEG (NY)1.34
PEG (5Y)2.73
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 | 4.53 |
F-Score5
WACC8.34%
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 23.88 and the Price/Book (PB) ratio is 2.33.
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.