| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$111.76 |
| 52 Week High | US$146.81 |
| 52 Week Low | US$58.85 |
| Beta | 1.72 |
| 1 Month Change | 3.68% |
| 3 Month Change | -7.18% |
| 1 Year Change | 67.21% |
| 3 Year Change | 47.05% |
| 5 Year Change | 69.36% |
| Change since IPO | 2,855.64% |
Recent News & Updates
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...
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
| VLO | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | 3.7% | 1.5% | 1.2% |
| 1Y | 67.2% | 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
| VLO volatility | |
|---|---|
| VLO Average Weekly Movement | 7.3% |
| Oil and Gas Industry Average Movement | 8.9% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.0% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1980 | 9,794 | Joe Gorder | https://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
| VLO fundamental statistics | |
|---|---|
| Market Cap | US$44.03b |
| Earnings (TTM) | US$7.05b |
| Revenue (TTM) | US$149.96b |
6.2x
P/E Ratio0.3x
P/S RatioIs VLO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| VLO income statement (TTM) | |
|---|---|
| Revenue | US$149.96b |
| Cost of Revenue | US$136.63b |
| Gross Profit | US$13.33b |
| Other Expenses | US$6.28b |
| Earnings | US$7.05b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 17.89 |
| Gross Margin | 8.89% |
| Net Profit Margin | 4.70% |
| Debt/Equity Ratio | 56.7% |
How did VLO perform over the long term?
See historical performance and comparisonDividends
3.5%
Current Dividend Yield23%
Payout RatioValuation
Is VLO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation 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.
| What is VLO's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$44.03b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.4x |
| Enterprise Value/EBITDA | 4.3x |
| 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 |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 5.7x | ||
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 6.2x |
| Fair PE Ratio | 8.6x |
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
0/6Future 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
3/6Past 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
5/6Financial 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
5/6Dividend 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.
Discover strong dividend paying companies
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/10 00:00 |
| End of Day Share Price | 2022/08/10 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.