NYSE:VLO

Stock Analysis Report

Executive Summary

Valero Energy Corporation operates as an independent petroleum refining and ethanol producing company in the United States, Canada, the United Kingdom, Ireland, and internationally.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


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


Market Performance


7 Day Return

5.3%

VLO

-0.1%

US Oil and Gas

1.0%

US Market


1 Year Return

0.4%

VLO

-20.1%

US Oil and Gas

8.0%

US Market

Return vs Industry: VLO exceeded the US Oil and Gas industry which returned -20.1% over the past year.

Return vs Market: VLO underperformed the US Market which returned 8% over the past year.


Shareholder returns

VLOIndustryMarket
7 Day5.3%-0.1%1.0%
30 Day12.5%-5.4%-0.07%
90 Day10.0%-8.6%-1.0%
1 Year4.8%0.4%-17.1%-20.1%10.4%8.0%
3 Year86.1%66.0%-7.4%-15.9%46.2%36.7%
5 Year130.6%92.7%-22.6%-33.7%64.3%46.2%

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?

15.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VLO ($93.21) is trading above our estimate of fair value ($64.03)

Significantly Below Fair Value: VLO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VLO is poor value based on its PE Ratio (15.3x) compared to the Oil and Gas industry average (9.6x).

PE vs Market: VLO is good value based on its PE Ratio (15.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: VLO is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: VLO is overvalued based on its PB Ratio (1.8x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

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

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VLO's forecast earnings growth (15% per year) is above the savings rate (2.7%).

Earnings vs Market: VLO's earnings (15% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: VLO's earnings are forecast to grow, but not significantly.

Revenue vs Market: VLO's revenue (0.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: VLO's revenue (0.8% 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 (15.9%).


Next Steps

Past Performance

How has Valero Energy performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VLO's earnings have declined by -3.7% 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 (-43.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (20.6%).


Return on Equity

High ROE: VLO's Return on Equity (12.4%) is considered low.


Return on Assets

ROA vs Industry: VLO's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: VLO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Valero Energy's financial position?


Financial Position Analysis

Short Term Liabilities: VLO's short term assets ($17.8B) exceeds its short term liabilities ($12.5B)

Long Term Liabilities: VLO's short term assets (17.8B) exceeds its long term liabilities (17.6B)


Debt to Equity History and Analysis

Debt Level: VLO's debt to equity ratio (39.9%) is considered satisfactory

Reducing Debt: VLO's debt to equity ratio has increased from 30.8% to 39.9% over the past 5 years.

Debt Coverage: VLO's debt is well covered by operating cash flow (52.5%).

Interest Coverage: VLO's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

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 2.045120x debt).


Next Steps

Dividend

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

3.86%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VLO's dividend (3.86%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: VLO's dividend (3.86%) is in the top 25% of dividend payers in the US market (3.68%)

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 (55.8%), 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 well covered by earnings (49.7% payout ratio).


Next Steps

Management

What is the CEO of Valero Energy's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Joe Gorder (62yo)

5.4yrs

Tenure

US$18,759,156

Compensation

Mr. Joseph W. Gorder, also known as Joe, has been the Chief Executive Officer of Valero Energy Corporation since May 01, 2014 and has been its President since November 2012. Mr. Gorder has been the Chief E ...


CEO Compensation Analysis

Compensation vs. Market: Joe's total compensation ($USD18.76M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: VLO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

8.2yrs

Average Tenure

66.5yo

Average Age

Experienced Board: VLO's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$42,48520 Feb 19
Stephen Waters
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$84.97
BuyUS$1,818,37513 Dec 18
Randall Weisenburger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$72.74
BuyUS$5,17403 Dec 18
H. Eberhart
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares60
Max PriceUS$86.23

Ownership Breakdown


Management Team

  • Joe Gorder (62yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$18.76m
  • Donna Titzman (56yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$3.44m
  • Steve Gilbert

    Disclosure & Compliance Officer and Secretary

    • Tenure: 0yrs
  • R. Riggs (53yo)

    Executive VP & COO

    • Tenure: 1.8yrs
    • Compensation: US$4.21m
  • Gary Simmons (54yo)

    Senior Vice President of Supply

    • Tenure: 5.4yrs
    • Compensation: US$2.59m
  • Cheryl Thomas

    Chief Information Officer & Senior VP of Information Services

    • Tenure: 0yrs
  • Mark Schmeltekopf (55yo)

    Chief Accounting Officer & Senior VP

    • Tenure: 0yrs
  • Jason Fraser (50yo)

    Executive VP & General Counsel

    • Tenure: 0.8yrs
  • John Locke

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Julia Reinhart

    Senior Vice President of Human Resources & Administration

    • Tenure: 0yrs

Board Members

  • Steve Waters (72yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$305.05k
  • Bob Profusek (69yo)

    Lead Director

    • Tenure: 9.8yrs
    • Compensation: US$335.05k
  • Randy Weisenburger (61yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$325.05k
  • Ray Wilkins (68yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$325.05k
  • Kim Greene (53yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$305.05k
  • Joe Gorder (62yo)

    Chairman

    • Tenure: 5.4yrs
    • Compensation: US$18.76m
  • H. Eberhart (65yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$305.05k
  • Phil Pfeiffer (71yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$305.05k
  • Donald Nickles (70yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$305.05k
  • Debbie Majoras (55yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$325.05k

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$38.627b
  • Shares outstanding: 414.40m
  • 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
VLOE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1/2 COM SHS USD0.01BRBRLAug 2016

Biography

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 thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:41
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.