Valero Energy Corp
Exchange: NYSESector: EnergyIndustry: Oil & Gas Refining & Marketing
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments.
Did you know?
VLO's revenue grew at a 2.1% CAGR over the last 6 years.
Current Price
$234.36
+0.42%GoodMoat Value
$115.80
50.6% overvaluedProfile
Valuation (TTM)
Market Cap$71.48B
P/E30.44
EV$78.34B
P/B3.01
Shares Out305.01M
P/Sales0.58
Revenue$122.69B
EV/EBITDA11.35
Valero Energy Corp (VLO) Stock Analysis
GoodMoat Analysis
Valero Energy is a major oil refiner and fuel marketer. While it possesses a structural moat through scale and regulatory barriers, its current valuation appears unfavourable relative to its intrinsic value and recent financial performance.
Read full analysis
Valero Energy Corp is a leading international manufacturer and marketer of transportation fuels and petrochemical products, operating through an extensive network of refineries and retail stations. Applying the GoodMoat framework, the business demonstrates a durable competitive moat, primarily through scale privilege in physical infrastructure and significant regulatory barriers to building new refineries. This likely results in a Moat Score of 5 or higher, passing the initial gate for analysis. However, recent quality indicators are mixed. The company shows a strong balance sheet with a Debt/Equity ratio of 0.45, but profitability metrics are currently weak, with an operating margin of 2.6% and negative YoY revenue growth of -2.1%. The ROE of 9.9% is below the framework's high-quality threshold of 15-20%. The valuation assessment is critical. The stock trades at a P/E of 30.5x, which is high for a company with negative growth and single-digit ROE. More importantly, the current price of $234.54 is more than double the GoodMoat Target of $115.80, suggesting a negative margin of safety and an unfavourable valuation. Integrating this into the Decision Framework, while the business passes the Moat & Quality gate, it likely fails the Valuation & Risk gate due to extreme overvaluation relative to the target price and the presence of weak quality metrics. For a value investor, this indicates the stock is not attractively priced for further investigation at these levels. Analysis based on data as of 2024-05-15.
Market Cap$71.48B
Current Price$234.36
P/E Ratio30.44
Forward P/E—
PEG Ratio0.10
EPS$7.57
Book Value$77.78
P/B Ratio3.01
VLO Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 5.6% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5.9B
Revenue
108.3B
FY19
64.9B
FY20
114.0B
FY21
176.4B
FY22
144.8B
FY23
129.9B
FY24
122.7B
FY25
Net Income
2.4B
FY19
—
FY20
930M
FY21
11.5B
FY22
8.8B
FY23
2.8B
FY24
2.3B
FY25
VLO 52-Week Range
$110.07
$254.32
50-Day MA: $226.28200-Day MA: $178.48
Did you know?
VLO's revenue grew at a 2.1% CAGR over the last 6 years.
Valero Energy Corp (VLO) Financial Summary
Valero Energy Corp (VLO) is a Energy company in the Oil & Gas Refining & Marketing industry, listed on NYSE. The stock currently trades at $234.36 with a market capitalization of $71.48B.
Key valuation metrics include a P/E ratio of 30.44, price-to-book ratio of 3.01, and EPS of $7.57. The company reports a profit margin of 1.9% and return on equity of 9.9%.
VLO Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $71.48B |
| P/E Ratio | 30.44 |
| EPS | $7.57 |
| P/B Ratio | 3.01 |
| P/S Ratio | 0.58 |
| EV/EBITDA | 11.35 |
| Dividend Yield | 1.97% |
| Profit Margin | 1.9% |
| Return on Equity | 9.9% |
| Debt/Equity | 0.45 |
VLO Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $108.32B | $2.42B |
| FY20 | $64.91B | $-1.42B |
| FY21 | $113.98B | $930.00M |
| FY22 | $176.38B | $11.53B |
| FY23 | $144.77B | $8.84B |
| FY24 | $129.88B | $2.77B |
| FY25 | $122.69B | $2.35B |
Valero Energy Corp (VLO) Valuation
Based on GoodMoat's DCF model, Valero Energy Corp has a fair value estimate of $115.80. At the current price of $234.36, the stock appears 102.4% overvalued relative to our intrinsic value estimate.
VLO Quality Indicators
Valero Energy Corp maintains a profit margin of 1.9% and an operating margin of 2.6%. Return on equity stands at 9.9%. The current ratio is 1.65. Debt-to-equity ratio is 0.45.
About Valero Energy Corp
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which produces low-carbon fuels including renewable diesel and sustainable aviation fuel (SAF), with a production capacity of approximately 1.2 billion gallons per year in the U.S. Gulf Coast region. See the annual report on Form 10-K for more information on SAF. Valero also owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.7 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments.
VLO Free Cash Flow
Valero Energy Corp generated $4.01B in trailing twelve-month free cash flow, representing an FCF yield of 5.61%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
VLO Shares Outstanding
Valero Energy Corp has 0.31 billion shares outstanding at a share price of $234.36, giving it a market capitalization of $71.48B.
VLO Recent Insider Trades
Recent insider transactions at Valero Energy Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Fisher Eric A (SVP) | SELL | 8,311 | $1.89M |