StockCV
Valero Energy Corporation logo

Valero Energy Corporation

Petroleum Refining

$434.59
-2.08%
Market cap $125B

Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom.

It is a $125B energy company. Revenue grew 12.6% over the last year, it keeps 5¢ of every dollar of sales as profit, and its net debt equals ~0.6 years of free cash flow. It trades at 17.3× earnings — in the most expensive third of its own history.

Website
valero.com
Location
San Antonio, TX
Employees
9 811
Sector
Energy
Founded
1980

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation75Growth56Profitability55Health73Quality90Moat36

Strong valuation and quality; Moat lags behind.

Valuation75
  • P/E vs own history74th pct · 5/25
  • FCF yield8.1% · 25/25
  • P/S0.9x · 25/25
  • EV/EBITDA12.8x · 20/25
Growth56
  • Revenue CAGR1.9% · 6/25
  • Net income CAGR26.1% · 25/25
  • EPS CAGR ~5Yn/a · 0/25
  • Fwd implied growth72.7% · 25/25
Profitability55
  • ROIC9.4% · 12/25
  • ROE29.9% · 25/25
  • Net margin5.2% · 13/25
  • Operating margin7.2% · 5/25
Health73
  • Altman Z5.01 · 25/25
  • Current ratio1.64 · 18/25
  • Interest coverage6.4x · 18/25
  • Net cash / debtD/A 10% · 12/25
Quality90
  • Piotroski F6/9 · 15/25
  • Beneish M-3.08 · 25/25
  • FCF conversion140% · 25/25
  • Margin stabilityσ 4.4% · 25/25
Moat36
  • ROIC >12% years4/10 yrs · 6/25
  • Median gross margin4.4% · 0/25
  • FCF-positive years9/9 yrs · 25/25
  • Worst-year net marginworst -2.2% · 5/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. FY2022Financial
    Best year on record
    $11.5B net income
  2. FY2018Financial
    Revenue crossed $1B
    $117B for the year
  3. FY2018Financial
    Revenue crossed $10B
    $117B for the year
  4. FY2018Financial
    Revenue crossed $50B
    $117B for the year
  5. FY2018Financial
    Revenue crossed $100B
    $117B for the year
  6. FY2016Financial
    First recorded profitable year
    $2.29B net income
  7. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  8. 2013Milestone
    Valero spun off its retail operations into a new publicly traded company, CST Brands
  9. Aug 1, 2011Acquisition
    Valero acquired the Pembroke Refinery from Chevron
  10. 2009Acquisition
    Valero Energy Corporation entered the ethanol market by acquiring 7 ethanol plants in March
  11. 2006Milestone
    Valero L.P. was spun off and renamed NuStar Energy
  12. Apr 25, 2005Acquisition
    The company purchased Premcor, Inc., for $8 billion
  13. 2003Acquisition
    Valero completed its acquisition of El Paso Corp's refinery, pipeline system and terminal assets in Corpus…
  14. 2001Acquisition
    Valero acquired two asphalt plants on the West Coast
  15. 2000Acquisition
    Valero purchased the Benicia, California, refinery and interest in 350 Exxon-branded service stations in…
  16. 1997Milestone
    Valero merged its natural gas service business with Pacific Gas and Electric Company and spun off its…
  17. Jan 1, 1980Founded
    Valero was established on January 1, 1980, as a spinoff of Coastal States Gas Corporation's Subsidiary, LoVaca…

Achievements

Verifiable track record, straight from the reported numbers.

#7 largest of 28 Energy companies by market cap
$10 000 invested in 2021 would be worth ~$68 537 today — price return only
$122.7B revenue in FY2025
Revenue up 12.6% year over year
Profitable 5 years in a row
Positive free cash flow 10 years in a row
9 811 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • Revenue growing 12.6% year over year
  • Could repay net debt from ~0.3 years of free cash flow
  • Interest covered 6.4× by operating earnings
  • Altman Z-Score 5.01 — low bankruptcy-risk zone

Watch-outs

  • Loss-making in 1 of the recent years

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

10 of 11 checks passed
  • Revenue growing+12.6% YoY
  • Profitable$7.21B TTM
  • Profit growing-36.1% YoY
  • Generates cash$10.1B TTM
  • Debt under control~0.6y of cash flow to repay
  • Established company$125B market cap
  • Not printing shares-24.1% shares over ~5y
  • Proven track record9/10 profitable years
  • Financially stableAltman Z 5.0 — safe
  • Pays a dividendyield 1.13%
  • Valuation not extremeP/E 17.3
Peer comparisonValero Energy Corporation vs 6 largest energy peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
VLO this company$125.1B17.3+12.6%5.2%Strong
XOM ExxonMobil Holdings Corporation$694.0B21.1+9.1%8.9%Mixed
CVX Chevron Corporation$416.8B20.3+10.2%9.6%Mixed
SHEL Shell plc$284.6B11.0-6.1%6.7%Solid
TTE TotalEnergies SE$191.1B10.9-6.8%7.2%Solid
COP ConocoPhillips$161.5B17.4+9.6%14.7%Strained
MPC Marathon Petroleum Corporation$127.8B14.9+15.0%5.6%Strained

Head-to-head: VLO vs XOM · VLO vs CVX · VLO vs SHEL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 4Buy 10Hold 11Strong sell 1

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of VLO on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $434.59 · market cap $125B.