(VLO) Valero Energy - Overview
Sector: Energy | Industry: Oil & Gas Refining & Marketing | Exchange: NYSE (USA) | Market Cap: 71.588m USD | Total Return: 97.8% in 12m
Avg Turnover: 766M
EPS Trend: -74.3%
Qual. Beats: 6
Rev. Trend: -95.2%
Qual. Beats: 5
Warnings
Below Avwap Earnings
Tailwinds
Pead, Confidence
Valero Energy Corporation (VLO) is a multinational manufacturer and marketer of transportation fuels and petrochemical products. Headquartered in San Antonio, Texas, the company operates through three primary segments: Refining, Renewable Diesel, and Ethanol. Its portfolio includes conventional petroleum products like gasoline, jet fuel, and asphalt, alongside low-carbon alternatives such as sustainable aviation fuel and renewable naphtha.
The company utilizes a complex refining model capable of processing a wide array of crude oil types, ranging from heavy sour to light sweet grades. This flexibility allows Valero to optimize feedstock costs based on global market spreads. In the renewable sector, Valero leverages its Diamond Green Diesel joint venture to position itself as one of the worlds largest producers of biomass-based diesel.
Refining margins are historically cyclical and sensitive to the crack spread, which is the price differential between a barrel of crude oil and the petroleum products extracted from it. Investors may find ValueRay useful for analyzing these industry cycles further. Valero distributes its products through an extensive wholesale network and branded retail outlets across North America, the United Kingdom, and Latin America.
- Crack spreads and refining margins dictate core profitability and cash flow
- Global crude oil price volatility impacts feedstock costs and inventory valuation
- Low-carbon fuel standard compliance and renewable diesel production drive margin expansion
- Regulatory shifts in environmental policy influence long-term capital expenditure and compliance costs
- Global demand for transportation fuels determines utilization rates across refining assets
| Net Income: 4.21b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 1.75 > 1.0 |
| NWC/Revenue: 8.06% < 20% (prev 6.58%; Δ 1.48% < -1%) |
| CFO/TA 0.10 > 3% & CFO 6.26b > Net Income 4.21b |
| Net Debt (6.84b) to EBITDA (9.11b): 0.75 < 3 |
| Current Ratio: 1.58 > 1.5 & < 3 |
| Outstanding Shares: last quarter (298.0m) vs 12m ago -5.10% < -2% |
| Gross Margin: 7.23% > 18% (prev 0.03%; Δ 720.5% > 0.5%) |
| Asset Turnover: 208.0% > 50% (prev 216.9%; Δ -8.95% > 0%) |
| Interest Coverage Ratio: 10.63 > 6 (EBITDA TTM 9.11b / Interest Expense TTM 559.0m) |
| A: 0.16 (Total Current Assets 27.8b - Total Current Liabilities 17.7b) / Total Assets 62.1b |
| B: 0.79 (Retained Earnings 48.9b / Total Assets 62.1b) |
| C: 0.10 (EBIT TTM 5.94b / Avg Total Assets 60.7b) |
| D: 1.37 (Book Value of Equity 48.2b / Total Liabilities 35.2b) |
| Altman-Z'' = 5.73 = AAA |
| DSRI: 1.21 (Receivables 13.4b/11.2b, Revenue 126b/128b) |
| GMI: 0.35 (GM 7.23% / 2.56%) |
| AQI: 0.97 (AQ_t 0.12 / AQ_t-1 0.12) |
| SGI: 0.98 (Revenue 126b / 128b) |
| TATA: -0.03 (NI 4.21b - CFO 6.26b) / TA 62.1b) |
| Beneish M = -3.50 (Cap -4..+1) = AA |
As of May 29, 2026, the stock is trading at USD 240.34 with a total of 2,320,456 shares traded.
Over the past week, the price has changed by -3.06%,
over one month by +2.39%,
over three months by +20.22% and
over the past year by +97.84%.
Valero Energy has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy VLO.
- StrongBuy: 10
- Buy: 7
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 256.3 | 6.6% |
P/E Trailing = 17.6107
P/E Forward = 9.2764
P/S = 0.6075
P/B = 3.1568
P/EG = 4.0843
Revenue TTM = 126b USD
EBIT TTM = 5.94b USD
EBITDA TTM = 9.11b USD
Long Term Debt = 10.5b USD (from longTermDebt, last quarter)
Short Term Debt = 1.03b USD (from shortTermDebt, last quarter)
Debt = 12.6b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.08b
Net Debt = 6.84b USD (calculated: Debt 12.6b - CCE 5.73b)
Enterprise Value = 78.4b USD (71.6b + Debt 12.6b - CCE 5.73b)
Interest Coverage Ratio = 10.63 (Ebit TTM 5.94b / Interest Expense TTM 559.0m)
EV/FCF = 13.23x (Enterprise Value 78.4b / FCF TTM 5.93b)
FCF Yield = 7.56% (FCF TTM 5.93b / Enterprise Value 78.4b)
FCF Margin = 4.70% (FCF TTM 5.93b / Revenue TTM 126b)
Net Margin = 3.33% (Net Income TTM 4.21b / Revenue TTM 126b)
Gross Margin = 7.23% ((Revenue TTM 126b - Cost of Revenue TTM 117b) / Revenue TTM)
Gross Margin QoQ = 8.89% (prev 10.28%)
Tobins Q-Ratio = 1.26 (Enterprise Value 78.4b / Total Assets 62.1b)
Interest Expense / Debt = 4.45% (Interest Expense 559.0m / Debt 12.6b)
Taxrate = 23.27% (401.0m / 1.72b)
NOPAT = 4.56b (EBIT 5.94b * (1 - 23.27%))
Current Ratio = 1.58 (Total Current Assets 27.8b / Total Current Liabilities 17.7b)
Debt / Equity = 0.53 (Debt 12.6b / totalStockholderEquity, last quarter 23.9b)
Debt / EBITDA = 0.75 (Net Debt 6.84b / EBITDA 9.11b)
Debt / FCF = 1.15 (Net Debt 6.84b / FCF TTM 5.93b)
Total Stockholder Equity = 23.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.93% (Net Income 4.21b / Total Assets 62.1b)
RoE = 17.63% (Net Income TTM 4.21b / Total Stockholder Equity 23.9b)
RoCE = 17.31% (EBIT 5.94b / Capital Employed (Equity 23.9b + L.T.Debt 10.5b))
RoIC = 10.01% (NOPAT 4.56b / Invested Capital 45.5b)
WACC = 7.59% (E(71.6b)/V(84.2b) * Re(8.33%) + D(12.6b)/V(84.2b) * Rd(4.45%) * (1-Tc(0.23)))
Discount Rate = 8.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -5.44%
[DCF] Terminal Value 77.97% ; FCFF base≈5.40b ; Y1≈6.19b ; Y5≈9.11b
[DCF] Fair Price = 438.6 (EV 137b - Net Debt 6.84b = Equity 130b / Shares 296.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -74.32 | EPS CAGR: -39.54% | SUE: 4.0 | # QB: 6
Revenue Correlation: -95.18 | Revenue CAGR: -8.36% | SUE: 1.73 | # QB: 5
EPS current Quarter (2026-06-30): EPS=9.57 | Chg30d=+38.70% | Revisions=+50% | Analysts=14
EPS next Quarter (2026-09-30): EPS=8.53 | Chg30d=+30.41% | Revisions=+75% | Analysts=14
EPS current Year (2026-12-31): EPS=27.78 | Chg30d=+32.36% | Revisions=+67% | GrowthEPS=+161.8% | GrowthRev=+10.5%
EPS next Year (2027-12-31): EPS=19.60 | Chg30d=+13.60% | Revisions=+40% | GrowthEPS=-29.4% | GrowthRev=-7.5%
[Analyst] Revisions Ratio: +75%