# Valero Energy Corporation (VLO) — Stock CV

Valero Energy Corporation 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.

> 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.

## Identity

- **Ticker**: VLO
- **Sector**: Energy
- **Industry**: Petroleum Refining
- **Headquarters**: SAN ANTONIO, TX
- **Employees**: 9 811
- **Website**: https://www.valero.com
- **Market cap**: $125B
- **Last price**: $434.59
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $139B
- **Net income**: $7.21B
- **Free cash flow**: $10.1B
- **Net debt**: $5.93B
- **P/E**: 17.3
- **Revenue growth (YoY)**: 12.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 75 |
| Growth | 56 |
| Profitability | 55 |
| Health | 73 |
| Quality | 90 |
| Moat | 36 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +12.6% YoY
- [x] Profitable — $7.21B TTM
- [ ] Profit growing — -36.1% YoY
- [x] Generates cash — $10.1B TTM
- [x] Debt under control — ~0.6y of cash flow to repay
- [x] Established company — $125B market cap
- [x] Not printing shares — -24.1% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [x] Financially stable — Altman Z 5.0 — safe
- [x] Pays a dividend — yield 1.13%
- [x] Valuation not extreme — P/E 17.3

## Experience (career milestones)

- **FY2022** — Best year on record: $11.5B net income
- **FY2018** — Revenue crossed $1B: $117B for the year
- **FY2018** — Revenue crossed $10B: $117B for the year
- **FY2018** — Revenue crossed $50B: $117B for the year
- **FY2018** — Revenue crossed $100B: $117B for the year
- **FY2016** — First recorded profitable year: $2.29B net income
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2013** — Valero spun off its retail operations into a new publicly traded company, CST Brands
- **Aug 1, 2011** — Valero acquired the Pembroke Refinery from Chevron
- **2009** — Valero Energy Corporation entered the ethanol market by acquiring 7 ethanol plants in March
- **2006** — Valero L.P. was spun off and renamed NuStar Energy
- **Apr 25, 2005** — The company purchased Premcor, Inc., for $8 billion
- **2003** — Valero completed its acquisition of El Paso Corp's refinery, pipeline system and terminal assets in Corpus…
- **2001** — Valero acquired two asphalt plants on the West Coast
- **2000** — Valero purchased the Benicia, California, refinery and interest in 350 Exxon-branded service stations in…
- **1997** — Valero merged its natural gas service business with Pacific Gas and Electric Company and spun off its…
- **Jan 1, 1980** — Valero was established on January 1, 1980, as a spinoff of Coastal States Gas Corporation's Subsidiary, LoVaca…

## 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

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $114B | $930M | $4.30B |
| FY2022 | $176B | $11.5B | $10.9B |
| FY2023 | $145B | $8.84B | $8.33B |
| FY2024 | $130B | $2.77B | $5.78B |
| FY2025 | $123B | $2.35B | $5.04B |

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Source: https://stockcv.com/VLO — derived from company filings; may be delayed or incomplete. Information, not investment advice.