Valero Energy Corporation operates as an independent petroleum refining and ethanol producing company in the United States, Canada, the United Kingdom, Ireland, and internationally.
Established dividend payer with mediocre balance sheet.
Share Price & News
How has Valero Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VLO has not had significant price volatility in the past 3 months.
7 Day Return
US Oil and Gas
1 Year Return
US Oil and Gas
Return vs Industry: VLO exceeded the US Oil and Gas industry which returned -19.5% over the past year.
Return vs Market: VLO underperformed the US Market which returned 19.4% over the past year.
Price Volatility Vs. Market
How volatile is Valero Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall StIs Valero Energy Corporation's (NYSE:VLO) 4.7% Dividend Sustainable?
3 weeks ago | Simply Wall StValero Energy (NYSE:VLO) Has A Pretty Healthy Balance Sheet
1 month ago | Simply Wall StIs Valero Energy Corporation's (NYSE:VLO) 11% ROE Strong Compared To Its Industry?
Is Valero Energy undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VLO ($82.52) is trading below our estimate of fair value ($98.02)
Significantly Below Fair Value: VLO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: VLO is poor value based on its PE Ratio (14.1x) compared to the Oil and Gas industry average (8.9x).
PE vs Market: VLO is good value based on its PE Ratio (14.1x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: VLO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: VLO is overvalued based on its PB Ratio (1.6x) compared to the US Oil and Gas industry average (0.8x).
How is Valero Energy forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VLO's earnings are forecast to decline over the next 3 years (-2.8% per year).
Earnings vs Market: VLO's earnings are forecast to decline over the next 3 years (-2.8% per year).
High Growth Earnings: VLO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: VLO's revenue is expected to decline over the next 3 years (-0.01% per year).
High Growth Revenue: VLO's revenue is forecast to decline over the next 3 years (-0.01% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VLO's Return on Equity is forecast to be low in 3 years time (13.5%).
How has Valero Energy performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VLO has high quality earnings.
Growing Profit Margin: VLO's current net profit margins (2.2%) are lower than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: VLO's earnings have declined by -6.6% per year over the past 5 years.
Accelerating Growth: VLO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: VLO had negative earnings growth (-22.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-10.9%).
Return on Equity
High ROE: VLO's Return on Equity (12.9%) is considered low.
Return on Assets
Return on Capital Employed
How is Valero Energy's financial position?
Financial Position Analysis
Short Term Liabilities: VLO's short term assets ($17.0B) exceed its short term liabilities ($12.1B).
Long Term Liabilities: VLO's short term assets ($17.0B) do not cover its long term liabilities ($17.5B).
Debt to Equity History and Analysis
Debt Level: VLO's debt to equity ratio (40.7%) is considered high.
Reducing Debt: VLO's debt to equity ratio has increased from 30.1% to 40.7% over the past 5 years.
Debt Coverage: VLO's debt is well covered by operating cash flow (62.6%).
Interest Coverage: VLO's interest payments on its debt are well covered by EBIT (8.4x coverage).
Inventory Level: VLO has a high level of physical assets or inventory.
Debt Coverage by Assets: VLO's debt is covered by short term assets (assets are 1.9x debt).
What is Valero Energy's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: VLO's dividend (4.75%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: VLO's dividend (4.75%) is in the top 25% of dividend payers in the US market (3.7%)
Stability and Growth of Payments
Stable Dividend: VLO's dividend payments have been volatile in the past 10 years.
Growing Dividend: VLO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (61.4%), VLO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VLO's dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Joe Gorder (62yo)
Mr. Joseph W. Gorder, also known as Joe, has been the Chief Executive Officer of Valero Energy Corporation since May 01, 2014 and served as its President from November 2012 to January 23, 2020. Mr. Gorder ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD18.76M) is above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
|Chairman & CEO||5.8yrs||US$18.76m||0.11% $37.4m|
|Executive VP & CFO||1.8yrs||US$3.44m||0.050% $17.0m|
|President & COO||2.1yrs||US$4.21m||0.044% $15.2m|
|Executive VP & Chief Commercial Officer||5.8yrs||US$2.59m||0.031% $10.7m|
|Chief Accounting Officer & Senior VP||0yrs||no data||no data|
|Chief Information Officer & Senior VP of Information Services||0yrs||no data||no data|
|Senior Vice President of Human Resources & Administration||0yrs||no data||no data|
|Disclosure & Compliance Officer and Secretary||0yrs||no data||no data|
|Executive VP & General Counsel||1.1yrs||no data||0.012% $4.0m|
|Vice President of Investor Relations||0yrs||no data||no data|
Experienced Management: VLO's management team is considered experienced (2.1 years average tenure).
|Chairman & CEO||5.8yrs||US$18.76m||0.11% $37.4m|
|Independent Director||11.4yrs||US$305.05k||0.0030% $1.0m|
|Lead Director||10.1yrs||US$335.05k||0.0092% $3.2m|
|Independent Director||9.1yrs||US$325.05k||0.013% $4.6m|
|Independent Director||9.1yrs||US$325.05k||0.0078% $2.7m|
|Independent Director||3.6yrs||US$305.05k||0.0014% $475.1k|
|Independent Director||3.6yrs||US$305.05k||0.0011% $379.4k|
|Independent Director||8yrs||US$305.05k||0.0051% $1.7m|
|Independent Director||15.1yrs||US$305.05k||0.0063% $2.2m|
|Independent Director||7.6yrs||US$325.05k||0.0048% $1.6m|
Experienced Board: VLO's board of directors are considered experienced (8.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Valero Energy Corporation's company bio, employee growth, exchange listings and data sources
- Name: Valero Energy Corporation
- Ticker: VLO
- Exchange: NYSE
- Founded: 1980
- Industry: Oil and Gas Refining and Marketing
- Sector: Energy
- Market Cap: US$34.179b
- Shares outstanding: 410.65m
- Website: https://www.valero.com
Number of Employees
- Valero Energy Corporation
- One Valero Way
- San Antonio
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|VLO||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1980|
|V1L||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1980|
|VLO *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1980|
|0LK6||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1980|
|V1L||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1980|
|VLOE34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EA REPR 1/2 COM SHS USD0.01||BR||BRL||Aug 2016|
Valero Energy Corporation operates as an independent petroleum refining and ethanol producing company in the United States, Canada, the United Kingdom, Ireland, and internationally. It operates through three segments: Refining, Ethanol, and VLP (Valero Energy Partners LP). The company is involved in oil and gas refining, marketing, and bulk selling activities. It produces conventional and premium gasolines, gasoline meeting the specifications of the California Air Resources Board (CARB), diesel fuels, low-sulfur and ultra-low-sulfur diesel fuels, CARB diesel, other distillates, jet fuels, asphalts, petrochemicals, lubricants, and other refined petroleum products. As of December 31, 2018, the company owned 15 petroleum refineries with a combined throughput capacity of approximately 3.1 million barrels per day. It markets its refined products through wholesale rack and bulk markets; and through approximately 7,000 outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brand names. The company also produces and sells ethanol, distiller grains, and corn oil primarily to refiners and gasoline blenders, as well as to animal feed customers. It owns and operates 14 ethanol plants with a combined ethanol production capacity of approximately 1.73 billion gallons per year. In addition, the company owns, operates, develops, and acquires crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets that provides transportation and terminaling services. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 00:12|
|End of Day Share Price||2020/02/19 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.