VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLO - US91913Y1001 - Common Stock
183.46 USD
-1.12 (-0.61%)
167.19 USD
-16.27 (-8.87%)
VLO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 208 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year VLO was profitable.
- 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 2.54%, VLO is in line with its industry, outperforming 45.19% of the companies in the same industry.
- The Return On Equity of VLO (6.26%) is comparable to the rest of the industry.
- VLO's Return On Invested Capital of 5.59% is in line compared to the rest of the industry. VLO outperforms 50.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for VLO is below the industry average of 21.83%.
- 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 Profit Margin of 1.21%. This is in the lower half of the industry: VLO underperforms 63.94% of its industry peers.
- In the last couple of years the Profit Margin of VLO has remained more or less at the same level.
- VLO has a worse Operating Margin (2.51%) than 70.19% of its industry peers.
- In the last couple of years the Operating Margin of VLO has declined.
- Looking at the Gross Margin, with a value of 3.38%, VLO is doing worse than 75.96% of the companies in the same industry.
- 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
- 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
- Compared to 1 year ago, VLO has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.55 indicates that VLO is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.55, VLO belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of VLO (2.67) is better than 78.85% 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 (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.55 |
ROIC/WACC0.7
WACC8.04%
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.
- The Current ratio of VLO (1.60) is better than 69.23% of its industry peers.
- 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%.
- 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 13.74% yearly.
- The Revenue is expected to decrease by -2.51% on average over the next years.
EPS Next Y22.82%
EPS Next 2Y25.28%
EPS Next 3Y17.15%
EPS Next 5Y13.74%
Revenue Next Year-6.76%
Revenue Next 2Y-7.38%
Revenue Next 3Y-2.95%
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 24.56 indicates a rather expensive valuation of VLO.
- The rest of the industry has a similar Price/Earnings ratio as VLO.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, VLO is valued at the same level.
- A Price/Forward Earnings ratio of 14.07 indicates a correct valuation of VLO.
- The rest of the industry has a similar Price/Forward Earnings ratio as VLO.
- VLO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLO.
- 63.94% 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 | 14.13 | ||
| EV/EBITDA | 10.14 |
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 17.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)2.8
EPS Next 2Y25.28%
EPS Next 3Y17.15%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.36%, VLO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.91, VLO has a dividend in line with its industry peers.
- VLO's Dividend Yield is a higher than the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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
- VLO pays out 94.09% 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.
DP94.09%
EPS Next 2Y25.28%
EPS Next 3Y17.15%
183.46
-1.12 (-0.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-23 2025-10-23/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners85.19%
Inst Owner Change0.09%
Ins Owners0.31%
Ins Owner Change-0.72%
Market Cap55.96B
Revenue(TTM)123.07B
Net Income(TTM)1.49B
Analysts75.2
Price Target189.64 (3.37%)
Short Float %4.08%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend4.27
Dividend Growth(5Y)3.43%
DP94.09%
Div Incr Years2
Div Non Decr Years14
Ex-DateN/A
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)-0.03%
PT rev (3m)9.23%
EPS NQ rev (1m)-3.55%
EPS NQ rev (3m)55.06%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)20.47%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 14.07 | ||
| P/S | 0.45 | ||
| P/FCF | 14.13 | ||
| P/OCF | 11.56 | ||
| P/B | 2.36 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)7.47
EY4.07%
EPS(NY)13.04
Fwd EY7.11%
FCF(TTM)12.98
FCFY7.08%
OCF(TTM)15.87
OCFY8.65%
SpS403.5
BVpS77.88
TBVpS77.88
PEG (NY)1.08
PEG (5Y)2.8
Graham Number114.41
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 | 4.55 |
F-Score5
WACC8.04%
ROIC/WACC0.7
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 Y22.82%
EPS Next 2Y25.28%
EPS Next 3Y17.15%
EPS Next 5Y13.74%
Revenue 1Y (TTM)-8.52%
Revenue growth 3Y4.45%
Revenue growth 5Y3.7%
Sales Q2Q%-2.15%
Revenue Next Year-6.76%
Revenue Next 2Y-7.38%
Revenue Next 3Y-2.95%
Revenue Next 5Y-2.51%
EBIT growth 1Y-37.8%
EBIT growth 3Y20.8%
EBIT growth 5Y0.04%
EBIT Next Year101.95%
EBIT Next 3Y30.47%
EBIT Next 5Y19.41%
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.
Can you provide the valuation status for VALERO ENERGY CORP?
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 are the PE and PB ratios of VALERO ENERGY CORP (VLO) stock?
The Price/Earnings (PE) ratio for VALERO ENERGY CORP (VLO) is 24.56 and the Price/Book (PB) ratio is 2.36.
Is the dividend of VALERO ENERGY CORP sustainable?
The dividend rating of VALERO ENERGY CORP (VLO) is 5 / 10 and the dividend payout ratio is 94.09%.