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VLO

Valero Energy NYSE:VLO Stock Report

Last Price

US$111.76

Market Cap

US$44.0b

7D

3.7%

1Y

67.2%

Updated

10 Aug, 2022

Data

Company Financials +
VLO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends5/6

VLO Stock Overview

Valero Energy Corporation manufactures, markets, and sells transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, and internationally.

Valero Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Valero Energy
Historical stock prices
Current Share PriceUS$111.76
52 Week HighUS$146.81
52 Week LowUS$58.85
Beta1.72
1 Month Change3.68%
3 Month Change-7.18%
1 Year Change67.21%
3 Year Change47.05%
5 Year Change69.36%
Change since IPO2,855.64%

Recent News & Updates

Aug 05
Valero Energy (NYSE:VLO) Is Investing Its Capital With Increasing Efficiency

Valero Energy (NYSE:VLO) Is Investing Its Capital With Increasing Efficiency

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jul 27

Valero Energy Q2 2022 Earnings Preview

Valero Energy (NYSE:VLO) is scheduled to announce Q2 earnings results on Thursday, July 28th, before market open. The consensus EPS Estimate is $9.19 and the consensus Revenue Estimate is $40.73B (+46.8% Y/Y). Over the last 2 years, VLO has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 12 upward revisions and 0 downward. Revenue estimates have seen 5 upward revisions and 1 downward.

Shareholder Returns

VLOUS Oil and GasUS Market
7D3.7%1.5%1.2%
1Y67.2%49.9%-11.6%

Return vs Industry: VLO exceeded the US Oil and Gas industry which returned 49.4% over the past year.

Return vs Market: VLO exceeded the US Market which returned -13.5% over the past year.

Price Volatility

Is VLO's price volatile compared to industry and market?
VLO volatility
VLO Average Weekly Movement7.3%
Oil and Gas Industry Average Movement8.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: VLO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VLO's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19809,794Joe Gorderhttps://www.valero.com

Valero Energy Corporation manufactures, markets, and sells transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Refining, Renewable Diesel, and Ethanol. It produces conventional, premium, and reformulated gasolines; gasoline meeting the specifications of the California Air Resources Board (CARB); diesel fuels, and low-sulfur and ultra-low-sulfur diesel fuels; CARB diesel; other distillates; jet fuels; blendstocks; and asphalts, petrochemicals, lubricants, and other refined petroleum products, as well as sells lube oils and natural gas liquids.

Valero Energy Fundamentals Summary

How do Valero Energy's earnings and revenue compare to its market cap?
VLO fundamental statistics
Market CapUS$44.03b
Earnings (TTM)US$7.05b
Revenue (TTM)US$149.96b

6.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VLO income statement (TTM)
RevenueUS$149.96b
Cost of RevenueUS$136.63b
Gross ProfitUS$13.33b
Other ExpensesUS$6.28b
EarningsUS$7.05b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)17.89
Gross Margin8.89%
Net Profit Margin4.70%
Debt/Equity Ratio56.7%

How did VLO perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

23%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VLO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VLO?

Other financial metrics that can be useful for relative valuation.

VLO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA4.3x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does VLO's PE Ratio compare to its peers?

VLO PE Ratio vs Peers
The above table shows the PE ratio for VLO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.7x
PSX Phillips 66
7.6x-13.3%US$41.2b
MPC Marathon Petroleum
5.8x-48.9%US$47.5b
DINO HF Sinclair
6.7x-17.2%US$10.8b
PBF PBF Energy
2.8x-44.6%US$4.0b
VLO Valero Energy
6.2x-44.9%US$44.0b

Price-To-Earnings vs Peers: VLO is expensive based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (5.7x).


Price to Earnings Ratio vs Industry

How does VLO's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: VLO is good value based on its Price-To-Earnings Ratio (6.2x) compared to the US Oil and Gas industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is VLO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VLO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ratio8.6x

Price-To-Earnings vs Fair Ratio: VLO is good value based on its Price-To-Earnings Ratio (6.2x) compared to the estimated Fair Price-To-Earnings Ratio (8.6x).


Share Price vs Fair Value

What is the Fair Price of VLO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VLO ($111.76) is trading below our estimate of fair value ($160.42)

Significantly Below Fair Value: VLO is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Valero Energy forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-44.9%

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 (-44.9% per year).

Earnings vs Market: VLO's earnings are forecast to decline over the next 3 years (-44.9% 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 (-11.9% per year).

High Growth Revenue: VLO's revenue is forecast to decline over the next 3 years (-11.9% 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 (18.1%).


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Past Performance

How has Valero Energy performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VLO has high quality earnings.

Growing Profit Margin: VLO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VLO's earnings have declined by 20.1% per year over the past 5 years.

Accelerating Growth: VLO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VLO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (189.7%).


Return on Equity

High ROE: VLO's Return on Equity (32.3%) is considered high.


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Financial Health

How is Valero Energy's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VLO's short term assets ($27.4B) exceed its short term liabilities ($22.0B).

Long Term Liabilities: VLO's short term assets ($27.4B) exceed its long term liabilities ($19.6B).


Debt to Equity History and Analysis

Debt Level: VLO's net debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: VLO's debt to equity ratio has increased from 40.9% to 56.7% over the past 5 years.

Debt Coverage: VLO's debt is well covered by operating cash flow (80.2%).

Interest Coverage: VLO's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


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Dividend

What is Valero Energy current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VLO's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.51%).

High Dividend: VLO's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: VLO's dividends per share have been stable in the past 10 years.

Growing Dividend: VLO's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.6%), VLO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18%), VLO's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Joe Gorder (65 yo)

8.25yrs

Tenure

US$22,684,706

Compensation

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 ($USD22.68M) is above average for companies of similar size in the US market ($USD13.03M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VLO's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: VLO's board of directors are seasoned and experienced ( 10.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VLO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Valero Energy Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Valero Energy Corporation
  • Ticker: VLO
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Implied Market Cap: US$44.030b
  • Shares outstanding: 393.97m
  • Website: https://www.valero.com

Number of Employees


Location

  • Valero Energy Corporation
  • One Valero Way
  • San Antonio
  • Texas
  • 78249
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.