VALERO ENERGY CORP (VLO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VLO - US91913Y1001 - Common Stock
171.97 USD
-1.48 (-0.85%)
VLO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 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.
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
With a Return On Assets value of 2.54%, VLO perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
VLO has a Return On Equity of 6.26%. This is comparable to the rest of the industry: VLO outperforms 47.14% of its industry peers.
VLO has a Return On Invested Capital of 5.59%. This is comparable to the rest of the industry: VLO outperforms 48.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VLO is below the industry average of 21.28%.
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
Looking at the Profit Margin, with a value of 1.21%, VLO is doing worse than 63.81% of the companies in the same industry.
In the last couple of years the Profit Margin of VLO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 2.51%, VLO is doing worse than 70.95% of the companies in the same industry.
In the last couple of years the Operating Margin of VLO has declined.
With a Gross Margin value of 3.38%, VLO is not doing good in the industry: 76.67% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, VLO has an improved debt to assets ratio.
2.2 Solvency
VLO has an Altman-Z score of 4.51. This indicates that VLO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.51, VLO belongs to the best of the industry, outperforming 90.00% 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.
Looking at the Debt to FCF ratio, with a value of 2.67, VLO is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
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 of 0.41. This is comparable to the rest of the industry: VLO outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 4.51 |
ROIC/WACC0.68
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.60 indicates that VLO should not have too much problems paying its short term obligations.
VLO has a better Current ratio (1.60) than 70.00% 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.
With a Quick ratio value of 1.09, VLO perfoms like the industry average, outperforming 55.71% of the companies in the same 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%.
The Earnings Per Share has been growing by 8.76% on average over the past years. This is quite good.
VLO shows a decrease in Revenue. In the last year, the revenue decreased by -8.52%.
Measured over the past years, VLO shows a small growth in Revenue. The Revenue has been growing by 3.70% on average per year.
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.
The Revenue is expected to decrease by -2.51% on average over the next years.
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
The Price/Earnings ratio is 23.02, which indicates a rather expensive current valuation of VLO.
VLO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.47. VLO is around the same levels.
VLO is valuated correctly with a Price/Forward Earnings ratio of 14.87.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VLO is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, VLO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 14.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VLO.
Based on the Price/Free Cash Flow ratio, VLO is valued a bit cheaper than the industry average as 65.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.49 | ||
| EV/EBITDA | 9.75 |
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)1.29
PEG (5Y)2.63
EPS Next 2Y17.98%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
VLO has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.90, VLO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, 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 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.
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%
NYSE:VLO (11/24/2025, 1:22:55 PM)
171.97
-1.48 (-0.85%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-4.2%
Ins Owners0.36%
Ins Owner Change-0.05%
Market Cap53.42B
Revenue(TTM)123.07B
Net Income(TTM)1.49B
Analysts77.6
Price Target186.16 (8.25%)
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)7.22%
PT rev (3m)16.63%
EPS NQ rev (1m)33.59%
EPS NQ rev (3m)93.7%
EPS NY rev (1m)12.8%
EPS NY rev (3m)22%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.02 | ||
| Fwd PE | 14.87 | ||
| P/S | 0.43 | ||
| P/FCF | 13.49 | ||
| P/OCF | 11.04 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 9.75 |
EPS(TTM)7.47
EY4.34%
EPS(NY)11.57
Fwd EY6.73%
FCF(TTM)12.75
FCFY7.41%
OCF(TTM)15.58
OCFY9.06%
SpS396.17
BVpS76.47
TBVpS76.47
PEG (NY)1.29
PEG (5Y)2.63
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 | 4.51 |
F-Score5
WACC8.23%
ROIC/WACC0.68
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 23.02 and the Price/Book (PB) ratio is 2.25.
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.