Valero Energy Corp

Energy
Integrated oil Companies
www.valero.com

Earnings Score
Moat Score
Safety Score

Market Cap $41.04B
PE 47
Debt $10.85B
Cash $4.81B
EV $47.09B
FCF $3.73B

Earnings

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Sales & Net Margins

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Earnings	$868.00M
EBIT	$1.17B
ROE	3%
ROA	2%
FCF	$3.73B
Equity	$26.32B
Growth Stability	-45%
PE	47.28
PEG	3.73
PB	1.56
P/FCF	10.99
P/S	0.32
Price/Cash	0.12
Debt/Equity	0.41
Debt/FCF	2.91
Net Margins	-2%
Gross Margins	3%
Op. Margins	1%
Earnings CAGR	7%
Sales Growth YoY	-5%
Sales Growth QoQ	-2%
Sales CAGR	6%
FCF CAGR	2%
Equity CAGR	3%
Earnings Stability	0.08
Earnings Growth YoY	-152%
Earnings Growth QoQ	-333%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	16%
FCF CAGR 5Y	-0%
Equity CAGR 5Y	11%
Earnings CAGR 3Y	-11%
Sales CAGR 3Y	-11%
FCF CAGR 3Y	-9%
Equity CAGR 3Y	6%
Market Cap	$41.04B
Revenue	$128.38B
Dividend Yield	3%
Payout Ratio	159%
Assets	$59.18B
Total Debt	$10.85B
Cash	$4.81B
Shares Outstanding	314M
EV	47.09B
Earnings Score	7%
Moat Score	25%
Safety Score	61%
Final Score	31%
Working Capital	8.45B
Current Ratio	1.56
Gross Profit	$3.33B
Shares Growth 3y	-9%
Equity Growth QoQ	-4%
Equity Growth YoY	-9%

Assets & ROA

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Stockholders Equity & ROE

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Valero Energy is one of the largest independent refiners in the United States. It operates 14 refineries with a total throughput capacity of 3.2 million barrels a day in the United States, Canada, and the United Kingdom. Valero also owns 14 ethanol plants with capacity of 1.7 billion gallons of ethanol a year and holds a 50% stake in Diamond Green Diesel, which has capacity to produce 700 million gallons per year of renewable diesel.

SEC Filings

Direct access to Valero Energy Corp (VLO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Valero Energy Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Valero Energy Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 8%

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Valero Energy Corp Discounted Cash Flow

Fully customizable DCF calculator online for Valero Energy Corp.

Years

Calculation mode

= $42B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.7B	$3.8B	$3.9B	$3.9B	$4B	$4B	$4.1B	$4.2B	$4.2B	$4.3B	$4.4B	$44B
DCF		$3.4B	$3.2B	$2.9B	$2.7B	$2.5B	$2.3B	$2.1B	$2B	$1.8B	$1.7B	$17B
Value	$42B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	-	3%	4%	3%	2%	-2%	1%	7%	6%	2%	-2%
ROA	-	8%	7%	9%	7%	-3%	4%	26%	19%	6%	2%
ROE	-	11%	18%	14%	11%	-7%	5%	45%	31%	10%	3%

Bad Net Margins (-2.15%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	2.85	2.51	9.15	3.6	-9.86	4.08	1.18	1.58	2.26	2.91
Debt over Equity	0.35	0.39	0.39	0.4	0.43	0.75	0.7	0.46	0.4	0.38	0.41
Growth Stability	-	-	-	90%	77%	-45%	68%	100%	100%	39%	-45%

Neutral Debt/FCF ratio (2.91)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.41)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-45%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-	24%	25%	-7%	-40%	76%	55%	-18%	-10%	16%
Earnings YoY growth	-	-43%	78%	-23%	-22%	-159%	-165%	1K%	-23%	-69%	13%
Equity YoY growth	-	-2%	10%	-1%	-1%	-13%	1%	29%	12%	-4%	11%
FCF YoY growth	-	-13%	25%	-72%	170%	-155%	-329%	189%	-26%	-37%	-0%