VALERO ENERGY CORP (VLO) Fundamental Analysis & Valuation

NYSE:VLO • US91913Y1001

Current stock price

235.96 USD
+3.39 (+1.46%)
At close:
236.19 USD
+0.23 (+0.1%)
After Hours:

This VLO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. VLO Profitability Analysis

1.1 Basic Checks

  • VLO had positive earnings in the past year.
  • VLO had a positive operating cash flow in the past year.
  • Each year in the past 5 years VLO has been profitable.
  • Each year in the past 5 years VLO had a positive operating cash flow.
VLO Yearly Net Income VS EBIT VS OCF VS FCFVLO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • VLO has a Return On Assets of 4.03%. This is comparable to the rest of the industry: VLO outperforms 54.59% of its industry peers.
  • Looking at the Return On Equity, with a value of 9.85%, VLO is in line with its industry, outperforming 59.42% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 7.67%, VLO is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
  • VLO had an Average Return On Invested Capital over the past 3 years of 11.41%. This is significantly below the industry average of 22.49%.
Industry RankSector Rank
ROA 4.03%
ROE 9.85%
ROIC 7.67%
ROA(3y)7.53%
ROA(5y)8.61%
ROE(3y)18.19%
ROE(5y)21.67%
ROIC(3y)11.41%
ROIC(5y)13.3%
VLO Yearly ROA, ROE, ROICVLO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 1.91%, VLO is doing worse than 62.32% of the companies in the same industry.
  • In the last couple of years the Profit Margin of VLO has declined.
  • VLO has a Operating Margin of 3.51%. This is in the lower half of the industry: VLO underperforms 66.67% of its industry peers.
  • VLO's Operating Margin has declined in the last couple of years.
  • VLO's Gross Margin of 4.43% is on the low side compared to the rest of the industry. VLO is outperformed by 76.33% of its industry peers.
  • In the last couple of years the Gross Margin of VLO has declined.
Industry RankSector Rank
OM 3.51%
PM (TTM) 1.91%
GM 4.43%
OM growth 3Y-26.71%
OM growth 5YN/A
PM growth 3Y-33.58%
PM growth 5YN/A
GM growth 3Y-22.49%
GM growth 5YN/A
VLO Yearly Profit, Operating, Gross MarginsVLO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4 6 8

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7

2. VLO Health Analysis

2.1 Basic Checks

  • VLO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, VLO has less shares outstanding
  • The number of shares outstanding for VLO has been reduced compared to 5 years ago.
  • Compared to 1 year ago, VLO has a worse debt to assets ratio.
VLO Yearly Shares OutstandingVLO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
VLO Yearly Total Debt VS Total AssetsVLO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 4.93 indicates that VLO is not in any danger for bankruptcy at the moment.
  • VLO has a better Altman-Z score (4.93) than 89.37% of its industry peers.
  • The Debt to FCF ratio of VLO is 2.11, which is a good value as it means it would take VLO, 2.11 years of fcf income to pay off all of its debts.
  • VLO has a Debt to FCF ratio of 2.11. This is amongst the best in the industry. VLO outperforms 84.06% 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.
  • With a Debt to Equity ratio value of 0.41, VLO perfoms like the industry average, outperforming 56.04% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 2.11
Altman-Z 4.93
ROIC/WACC0.93
WACC8.23%
VLO Yearly LT Debt VS Equity VS FCFVLO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • VLO has a Current Ratio of 1.65. 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 (1.65) than 70.05% of its industry peers.
  • A Quick Ratio of 1.11 indicates that VLO should not have too much problems paying its short term obligations.
  • VLO has a Quick ratio of 1.11. This is comparable to the rest of the industry: VLO outperforms 57.49% of its industry peers.
Industry RankSector Rank
Current Ratio 1.65
Quick Ratio 1.11
VLO Yearly Current Assets VS Current LiabilitesVLO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B 25B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. VLO Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 28.16% over the past year.
  • Measured over the past years, VLO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.61% on average per year.
  • Looking at the last year, VLO shows a decrease in Revenue. The Revenue has decreased by -5.54% in the last year.
  • Measured over the past years, VLO shows a quite strong growth in Revenue. The Revenue has been growing by 13.58% on average per year.
EPS 1Y (TTM)28.16%
EPS 3Y-28.61%
EPS 5YN/A
EPS Q2Q%496.87%
Revenue 1Y (TTM)-5.54%
Revenue growth 3Y-11.4%
Revenue growth 5Y13.58%
Sales Q2Q%-1.25%

3.2 Future

  • VLO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.70% yearly.
  • VLO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.31% yearly.
EPS Next Y14.04%
EPS Next 2Y9.68%
EPS Next 3Y14.94%
EPS Next 5Y24.7%
Revenue Next Year-11.55%
Revenue Next 2Y-4.21%
Revenue Next 3Y2.33%
Revenue Next 5Y-1.31%

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.
VLO Yearly Revenue VS EstimatesVLO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 50B 100B 150B
VLO Yearly EPS VS EstimatesVLO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 10 20 30

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3

4. VLO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.16, VLO is valued on the expensive side.
  • The rest of the industry has a similar Price/Earnings ratio as VLO.
  • When comparing the Price/Earnings ratio of VLO to the average of the S&P500 Index (26.11), we can say VLO is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 19.43, VLO is valued on the expensive side.
  • VLO's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of VLO to the average of the S&P500 Index (24.12), we can say VLO is valued inline with the index average.
Industry RankSector Rank
PE 22.16
Fwd PE 19.43
VLO Price Earnings VS Forward Price EarningsVLO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLO.
  • VLO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VLO is cheaper than 72.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.03
EV/EBITDA 10.1
VLO Per share dataVLO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300 400

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • VLO's earnings are expected to grow with 14.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)N/A
EPS Next 2Y9.68%
EPS Next 3Y14.94%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. VLO Dividend Analysis

5.1 Amount

  • VLO has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
  • VLO's Dividend Yield is comparable with the industry average which is at 3.47.
  • Compared to an average S&P500 Dividend Yield of 1.91, VLO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

  • The dividend of VLO has a limited annual growth rate of 3.17%.
  • 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)3.17%
Div Incr Years2
Div Non Decr Years14
VLO Yearly Dividends per shareVLO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • VLO pays out 60.09% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of VLO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.09%
EPS Next 2Y9.68%
EPS Next 3Y14.94%
VLO Yearly Income VS Free CF VS DividendVLO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B 10B
VLO Dividend Payout.VLO Dividend Payout, showing the Payout Ratio.VLO Dividend Payout.PayoutRetained Earnings

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VLO Fundamentals: All Metrics, Ratios and Statistics

VALERO ENERGY CORP

NYSE:VLO (3/17/2026, 8:04:00 PM)

After market: 236.19 +0.23 (+0.1%)

235.96

+3.39 (+1.46%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners87.6%
Inst Owner Change-0.78%
Ins Owners0.36%
Ins Owner Change1.5%
Market Cap70.56B
Revenue(TTM)122.69B
Net Income(TTM)2.34B
Analysts74.62
Price Target202.05 (-14.37%)
Short Float %4.53%
Short Ratio3.69
Dividend
Industry RankSector Rank
Dividend Yield 2.43%
Yearly Dividend4.58
Dividend Growth(5Y)3.17%
DP60.09%
Div Incr Years2
Div Non Decr Years14
Ex-Date02-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.3%
Min EPS beat(2)15.8%
Max EPS beat(2)18.81%
EPS beat(4)4
Avg EPS beat(4)43.51%
Min EPS beat(4)15.8%
Max EPS beat(4)109.4%
EPS beat(8)8
Avg EPS beat(8)130.41%
EPS beat(12)11
Avg EPS beat(12)90%
EPS beat(16)15
Avg EPS beat(16)72.02%
Revenue beat(2)2
Avg Revenue beat(2)6.91%
Min Revenue beat(2)6.57%
Max Revenue beat(2)7.24%
Revenue beat(4)4
Avg Revenue beat(4)6.5%
Min Revenue beat(4)4.47%
Max Revenue beat(4)7.72%
Revenue beat(8)7
Avg Revenue beat(8)3.48%
Revenue beat(12)8
Avg Revenue beat(12)2.47%
Revenue beat(16)11
Avg Revenue beat(16)4.43%
PT rev (1m)0.98%
PT rev (3m)6.51%
EPS NQ rev (1m)10.9%
EPS NQ rev (3m)-32.02%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-6.95%
Revenue NQ rev (1m)4.68%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)-4.28%
Valuation
Industry RankSector Rank
PE 22.16
Fwd PE 19.43
P/S 0.58
P/FCF 14.03
P/OCF 12.11
P/B 2.97
P/tB 3.02
EV/EBITDA 10.1
EPS(TTM)10.65
EY4.51%
EPS(NY)12.15
Fwd EY5.15%
FCF(TTM)16.82
FCFY7.13%
OCF(TTM)19.48
OCFY8.26%
SpS410.28
BVpS79.34
TBVpS78.06
PEG (NY)1.58
PEG (5Y)N/A
Graham Number137.88
Profitability
Industry RankSector Rank
ROA 4.03%
ROE 9.85%
ROCE 9.83%
ROIC 7.67%
ROICexc 8.58%
ROICexgc 8.67%
OM 3.51%
PM (TTM) 1.91%
GM 4.43%
FCFM 4.1%
ROA(3y)7.53%
ROA(5y)8.61%
ROE(3y)18.19%
ROE(5y)21.67%
ROIC(3y)11.41%
ROIC(5y)13.3%
ROICexc(3y)12.86%
ROICexc(5y)14.97%
ROICexgc(3y)12.99%
ROICexgc(5y)15.11%
ROCE(3y)14.62%
ROCE(5y)17.05%
ROICexgc growth 3Y-35.29%
ROICexgc growth 5YN/A
ROICexc growth 3Y-35.36%
ROICexc growth 5YN/A
OM growth 3Y-26.71%
OM growth 5YN/A
PM growth 3Y-33.58%
PM growth 5YN/A
GM growth 3Y-22.49%
GM growth 5YN/A
F-Score6
Asset Turnover2.12
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 2.11
Debt/EBITDA 1.29
Cap/Depr 25.21%
Cap/Sales 0.65%
Interest Coverage 8.09
Cash Conversion 77.99%
Profit Quality 215.14%
Current Ratio 1.65
Quick Ratio 1.11
Altman-Z 4.93
F-Score6
WACC8.23%
ROIC/WACC0.93
Cap/Depr(3y)30.54%
Cap/Depr(5y)45.77%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.88%
Profit Quality(3y)172.81%
Profit Quality(5y)213.43%
High Growth Momentum
Growth
EPS 1Y (TTM)28.16%
EPS 3Y-28.61%
EPS 5YN/A
EPS Q2Q%496.87%
EPS Next Y14.04%
EPS Next 2Y9.68%
EPS Next 3Y14.94%
EPS Next 5Y24.7%
Revenue 1Y (TTM)-5.54%
Revenue growth 3Y-11.4%
Revenue growth 5Y13.58%
Sales Q2Q%-1.25%
Revenue Next Year-11.55%
Revenue Next 2Y-4.21%
Revenue Next 3Y2.33%
Revenue Next 5Y-1.31%
EBIT growth 1Y14.83%
EBIT growth 3Y-35.06%
EBIT growth 5YN/A
EBIT Next Year145.07%
EBIT Next 3Y38.35%
EBIT Next 5Y27.29%
FCF growth 1Y-12.92%
FCF growth 3Y-22.71%
FCF growth 5YN/A
OCF growth 1Y-12.82%
OCF growth 3Y-22.62%
OCF growth 5Y43.78%

VALERO ENERGY CORP / VLO Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for VALERO ENERGY CORP?

ChartMill assigns a fundamental rating of 5 / 10 to VLO.


Can you provide the valuation status for VALERO ENERGY CORP?

ChartMill assigns a valuation rating of 3 / 10 to VALERO ENERGY CORP (VLO). This can be considered as Overvalued.


What is the profitability of VLO stock?

VALERO ENERGY CORP (VLO) has a profitability rating of 3 / 10.


What are the PE and PB ratios of VALERO ENERGY CORP (VLO) stock?

The Price/Earnings (PE) ratio for VALERO ENERGY CORP (VLO) is 22.16 and the Price/Book (PB) ratio is 2.97.


Is the dividend of VALERO ENERGY CORP sustainable?

The dividend rating of VALERO ENERGY CORP (VLO) is 6 / 10 and the dividend payout ratio is 60.09%.