NYSE:VLO

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with reasonable growth potential.


Similar Companies

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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: VLO's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

11.4%

VLO

8.0%

US Oil and Gas

2.8%

US Market


1 Year Return

-40.7%

VLO

-31.4%

US Oil and Gas

20.9%

US Market

Return vs Industry: VLO underperformed the US Oil and Gas industry which returned -31.4% over the past year.

Return vs Market: VLO underperformed the US Market which returned 20.7% over the past year.


Shareholder returns

VLOIndustryMarket
7 Day11.4%8.0%2.8%
30 Day50.9%30.3%11.1%
90 Day3.2%6.9%6.5%
1 Year-36.9%-40.7%-26.8%-31.4%23.6%20.9%
3 Year-22.8%-32.7%-34.2%-43.2%47.3%37.6%
5 Year-1.4%-20.7%-21.7%-37.1%94.3%72.9%

Long-Term 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

Valuation

Is Valero Energy undervalued compared to its fair value and its price relative to the market?

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VLO ($56.62) is trading below our estimate of fair value ($87.2)

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


Price To Earnings Ratio

PE vs Industry: VLO is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: VLO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VLO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VLO is overvalued based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

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

78.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VLO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: VLO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VLO's is expected to become profitable in the next 3 years.

Revenue vs Market: VLO's revenue (13.2% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: VLO's revenue (13.2% per year) is forecast to grow slower than 20% 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 (16.6%).


Next Steps

Past Performance

How has Valero Energy performed over the past 5 years?

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLO is currently unprofitable.

Growing Profit Margin: VLO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VLO is unprofitable, and losses have increased over the past 5 years at a rate of 16.9% per year.

Accelerating Growth: Unable to compare VLO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VLO is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-29.6%).


Return on Equity

High ROE: VLO has a negative Return on Equity (2.66%), as it is currently unprofitable.


Next Steps

  • Explore strong past performing companies in the Energy industry.

Financial Health

How is Valero Energy's financial position?


Financial Position Analysis

Short Term Liabilities: VLO's short term assets ($15.4B) exceed its short term liabilities ($8.1B).

Long Term Liabilities: VLO's short term assets ($15.4B) do not cover its long term liabilities ($23.6B).


Debt to Equity History and Analysis

Debt Level: VLO's debt to equity ratio (64.8%) is considered high.

Reducing Debt: VLO's debt to equity ratio has increased from 33.8% to 64.8% over the past 5 years.

Debt Coverage: VLO's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: VLO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

6.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VLO's dividend (6.92%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: VLO's dividend (6.92%) is in the top 25% of dividend payers in the US market (4.08%)


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.


Current Payout to Shareholders

Dividend Coverage: VLO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: VLO's dividends in 3 years are forecast to be covered by earnings (77.3% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Joe Gorder (63 yo)

6.5yrs

Tenure

US$28,200,511

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 ($USD28.20M) is above average for companies of similar size in the US market ($USD10.83M).

Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Gorder
Chairman & CEO6.5yrsUS$28.20m0.12%
$ 27.8m
R. Riggs
President & COO0.83yrUS$11.25m0.052%
$ 12.1m
Jason Fraser
Executive VP & CFO0.33yrUS$5.51m0.015%
$ 3.6m
Gary Simmons
Executive VP & Chief Commercial Officer6.5yrsUS$5.79m0.034%
$ 7.7m
Lawrence Schmeltekopf
Chief Accounting Officer & Senior VPno datano datano data
Cheryl Thomas
Senior VP & CTOno datano data0.010%
$ 2.4m
John Locke
Vice President of Investor Relations & Communicationsno datano datano data
J. Gilbert
Disclosure & Compliance Officer and Secretaryno datano datano data
Richard Walsh
Senior VP & General Counsel0.33yrno data0.018%
$ 4.1m
Richard Lashway
Senior Vice President of Corporate Development & Strategyno datano datano data
Julia Reinhart
Senior VP & Chief Human Resources Officer5yrsno datano data
Eric Fisher
Senior Vice President of Wholesale Marketing & International Commercial Operations0.83yrno datano data

0.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: VLO's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Joseph Gorder
Chairman & CEO6.5yrsUS$28.20m0.12%
$ 27.8m
Stephen Waters
Independent Director12.17yrsUS$305.00k0.0028%
$ 648.8k
Robert Profusek
Lead Independent Director10.83yrsUS$335.00k0.0092%
$ 2.1m
Randall Weisenburger
Independent Director9.83yrsUS$325.00k0.025%
$ 5.7m
Rayford Wilkins
Independent Director9.83yrsUS$325.00k0.0078%
$ 1.8m
Eric Mullins
Independent Director0.83yrno datano data
Kimberly Greene
Independent Director4.33yrsUS$305.00k0.0014%
$ 323.2k
H. Eberhart
Independent Director4.33yrsUS$305.00k0.0011%
$ 258.6k
Philip Pfeiffer
Independent Director8.75yrsUS$305.00k0.0054%
$ 1.3m
Donald Nickles
Independent Director15.83yrsUS$305.00k0.0064%
$ 1.5m
Deborah Majoras
Independent Director8.33yrsUS$325.00k0.0047%
$ 1.1m

8.8yrs

Average Tenure

66yo

Average Age

Experienced Board: VLO's board of directors are considered experienced (8.8 years average tenure).


Ownership

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.


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 company bio, 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
  • Market Cap: US$23.089b
  • Shares outstanding: 407.79m
  • Website: https://www.valero.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
V1LDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
VLO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1980
0LK6LSE (London Stock Exchange)YesCommon StockGBUSDJan 1980
V1LETLX (Eurotlx)YesCommon StockITEURJan 1980
VLOE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM USD0.01BRBRLAug 2016

Biography

Valero Energy Corporation manufactures and sells transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, and internationally. It operates through three se...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 23:17
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.