A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
VALERO ENERGY CORP/TX
VLO
$93.8B
Mkt Cap
$302.50
-0.90%
VALERO ENERGY CORP/TX (VLO) has a current P/E ratio of 40.0, compared to its historical median P/E of 9.6. The stock is currently considered Expensive based on its historical valuation range.
VALERO ENERGY CORP/TX (VLO) has a 5-year average return on invested capital (ROIC) of 21.2%. This indicates strong capital allocation and a potential competitive advantage.
VALERO ENERGY CORP/TX (VLO) has a market capitalization of $90.1B. It is classified as a large-cap stock.
Yes, VALERO ENERGY CORP/TX (VLO) pays a dividend with a trailing twelve-month yield of 1.56%. The company also returns capital through share buybacks, with a buyback yield of 3.21%.
Based on historical P/E analysis, VALERO ENERGY CORP/TX (VLO) appears expensive. The current P/E of 40.0 is 314% above its historical median of 9.6. The estimated fair value CAGR (P/E method) is 19.2%.
VALERO ENERGY CORP/TX (VLO) operates in the Petroleum Refining industry, within the Energy sector.
VALERO ENERGY CORP/TX (VLO) reported annual revenue of $122.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Valero Energy Corporation is a multinational petroleum refiner and low-carbon fuels producer operating 15 petroleum refineries across the U.S., Canada, and the U.K. with combined throughput capacity of approximately 3.2 million barrels per day, complemented by a joint venture stake in DGD producing renewable diesel and sustainable aviation fuel at two Gulf Coast plants with approximately 1.2 billion gallons annual capacity, and 12 ethanol plants in the Mid-Continent region with approximately 1.7 billion gallons annual capacity. The company generates revenue through three reportable segments—Refining, Renewable Diesel, and Ethanol—selling petroleum-based and low-carbon liquid transportation fuels and petrochemical products primarily in the U.S., Canada, the U.K., Ireland, and Latin America. Valero's refining business benefits from strategically located facilities offering favorable operating costs, while its low-carbon fuels businesses leverage expertise and distribution platforms developed through refining operations to capitalize on regulatory mandates and incentives including the EPA Renewable Fuel Standard, California Low Carbon Fuel Standard, Canada's Clean Fuel Regulations, and the U.K. Renewable Transport Fuel Obligation. The company has invested $6.0 billion in low-carbon fuels businesses and generates revenue from both the production and sale of qualifying renewable fuels and from compliance credits, while also incurring costs to meet renewable fuel blending obligations in its refining segment. Unit economics vary by segment: refining operates on throughput and crack spreads with cash operating expenses measured per barrel, renewable diesel operates on production volumes with per-gallon operating expenses, and ethanol operates on production volumes with per-gallon operating expenses, with all segments benefiting from federal tax incentives including the clean fuel production credit under Section 45Z extended through 2029.
【Constrained capacity supporting margins】 Management expects refining fundamentals to remain supported by constrained global refining capacity, low product inventories in key markets, and limited announced capacity additions, with sour crude differentials expected to widen from increased OPEC and Canadian production. The company anticipates renewable diesel and ethanol segments to benefit from policy clarity on federal tax incentives, particularly as final guidance on the clean fuel production credit is expected to provide additional value, though renewable diesel economics remain subject to feedstock costs and market conditions. Capital investments for 2026 are expected to be approximately $1.7 billion focused on sustaining operations and shorter-cycle optimization projects, with the Port Arthur SAF production project expected to begin operations in the second half of 2026, while the company maintains its long-term capital allocation framework targeting a 40%-50% minimum payout ratio and 20%-30% net debt-to-cap ratio. Management remains committed to operational excellence and shareholder returns, with all excess free cash flow directed toward share buybacks and the company positioned to capture benefits from evolving low-carbon fuel policies and market dynamics.
| Metric | Target | Period |
|---|---|---|
| Capital investments attributable to Valero | approximately $1.7 billion | 2026 |
| Port Arthur SAF production project start date | second half of 2026 | 2026 |
Capital investments attributable to Valero (2026): “we expect capital investments attributable to Valero for 2026 to be approximately $1.7 billion, which includes expenditures for turnarounds, catalysts, regulatory compliance, and joint venture investments.”
Port Arthur SAF production project start date (2026): “We still expect the project to begin operations in the second half of 2026.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 124.8B | 122.7B | 129.9B | 144.8B | 176.4B | 114.0B |
| Net Income | 4.2B | 2.3B | 2.8B | 8.8B | 11.5B | 930M |
| EPS | $13.67 | $7.57 | $8.58 | $24.92 | $29.04 | $2.27 |
| Free Cash Flow | 0 | 5.1B | 4.6B | 8.6B | 9.8B | 4.8B |
| ROIC | 14.6% | 9.1% | 11.6% | 32.4% | 45.8% | 7.0% |
| Gross Margin | - | 3.4% | 3.6% | 9.3% | 9.6% | 2.6% |
| Debt/Equity | 0.48 | 0.49 | 0.46 | 0.49 | 0.54 | 0.82 |
| Dividends/Share | $4.72 | $4.52 | $4.28 | $4.08 | $3.92 | $3.92 |
| Operating Income | 5.8B | 3.2B | 3.8B | 11.9B | 15.7B | 2.1B |
| Operating Margin | 4.7% | 2.6% | 2.9% | 8.2% | 8.9% | 1.9% |
| ROE | 17.6% | 9.7% | 11.3% | 33.5% | 48.9% | 5.0% |
| Shares Outstanding | 298M | 310M | 323M | 355M | 397M | 410M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 130.8B | 87.8B | 75.7B | 94.0B | 117.0B | 108.3B | 64.9B | 114.0B | 176.4B | 144.8B | 129.9B | 122.7B | 124.8B |
| Gross Margin | 9.7% | 15.9% | 8.8% | 4.7% | 4.7% | 4.3% | -1.3% | 2.6% | 9.6% | 9.3% | 3.6% | 3.4% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 724M | 710M | 715M | 829M | 925M | 868M | 756M | 865M | 934M | 998M | 961M | 1.0B | 1.1B |
| EBIT | 5.9B | 6.4B | 3.6B | 3.6B | 4.6B | 3.8B | -1.6B | 2.1B | 15.7B | 11.9B | 3.8B | 3.2B | 5.8B |
| Op. Margin | 4.5% | 7.2% | 4.7% | 3.8% | 3.9% | 3.5% | -2.4% | 1.9% | 8.9% | 8.2% | 2.9% | 2.6% | 4.7% |
| Net Income | 3.6B | 4.0B | 2.3B | 4.1B | 3.1B | 2.4B | -1.4B | 930M | 11.5B | 8.8B | 2.8B | 2.3B | 4.2B |
| Net Margin | 2.8% | 4.5% | 3.0% | 4.3% | 2.7% | 2.2% | -2.2% | 0.8% | 6.5% | 6.1% | 2.1% | 1.9% | 3.4% |
| Non-Recurring | 0 | 790M | 56M | 0 | 0 | 0 | 19M | 0 | 61M | 0 | 0 | 1.1B | 1.1B |
| Returns on Capital | |||||||||||||
| ROIC | 21.0% | 22.1% | 14.7% | 18.5% | 14.5% | 11.4% | -4.3% | 7.0% | 45.8% | 32.4% | 11.6% | 9.1% | 14.6% |
| ROE | 17.9% | 19.4% | 11.4% | 18.5% | 14.4% | 11.1% | -7.6% | 5.0% | 48.9% | 33.5% | 11.3% | 9.7% | 17.6% |
| ROA | 7.8% | 9.0% | 5.0% | 8.1% | 6.2% | 4.5% | -2.7% | 1.6% | 18.9% | 14.0% | 4.6% | 4.0% | 6.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 4.2B | 5.6B | 4.8B | 5.5B | 4.4B | 5.5B | 948M | 5.9B | 12.6B | 9.2B | 6.7B | 5.8B | 6.3B |
| Free Cash Flow | 2.1B | 4.0B | 3.5B | 5.0B | 2.9B | 3.9B | -66M | 4.8B | 9.8B | 8.6B | 4.6B | 5.1B | 0 |
| Owner Earnings | 2.5B | 3.7B | 2.9B | 3.4B | 2.2B | 3.2B | -1.5B | 3.4B | 10.0B | 6.4B | 3.8B | 2.6B | 6.1B |
| CapEx | 2.2B | 1.6B | 1.3B | 523M | 1.5B | 1.6B | 1.0B | 1.0B | 2.7B | 665M | 2.1B | 719M | 0 |
| Maint. CapEx | 1.7B | 1.8B | 1.9B | 2.0B | 2.1B | 2.3B | 2.4B | 2.4B | 2.5B | 2.7B | 2.8B | 3.2B | 64M |
| Growth CapEx | 463M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 264M | 0 | 0 | 0 | 0 |
| D&A | 1.7B | 1.8B | 1.9B | 2.0B | 2.1B | 2.3B | 2.4B | 2.4B | 2.5B | 2.7B | 2.8B | 3.2B | 64M |
| CapEx/OCF | 50.8% | 28.8% | 26.5% | 9.5% | 33.5% | 29.4% | 107.0% | 17.8% | 6.8% | 7.2% | 9.7% | 12.3% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 554M | 848M | 1.1B | 1.2B | 1.4B | 1.5B | 1.6B | 1.6B | 1.6B | 1.5B | 1.4B | 1.4B | 1.4B |
| Dividend Yield | 3.2% | 4.2% | 6.0% | 5.6% | 4.3% | 5.5% | 8.4% | 6.4% | 4.0% | 3.5% | 3.1% | 3.2% | 1.6% |
| Share Buybacks | 1.3B | 2.8B | 1.3B | 1.4B | 1.7B | 777M | 156M | 27M | 4.6B | 5.1B | 2.9B | 2.6B | 2.9B |
| Buyback Yield | 7.5% | 12.1% | 6.0% | 4.6% | 7.3% | 2.6% | 0.8% | 0.1% | 10.1% | 11.9% | 7.7% | 5.1% | 3.2% |
| Stock-Based Comp | 47M | 34M | 68M | 77M | 86M | 89M | 80M | 88M | 103M | 107M | 100M | 117M | 116M |
| Debt Repayment | 204M | 513M | 1.5B | 21M | 0 | 0 | 0 | 179M | 56M | 5.0M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -386M | -766M | -1.5B | -2.7B | 3.4B | 5.0B | 8.8B | 6.9B | 3.0B | 2.1B | 1.9B | 2.2B | 5.8B |
| Cash & Equiv. | 3.7B | 4.1B | 4.8B | 5.8B | 3.0B | 2.6B | 3.3B | 4.1B | 4.9B | 5.4B | 4.7B | 4.7B | 5.7B |
| Long-Term Debt | 5.8B | 7.2B | 7.9B | 8.8B | 8.9B | 9.2B | 14.0B | 12.6B | 10.5B | 10.1B | 9.7B | 9.7B | 10.5B |
| Debt/Equity | 0.34 | 0.36 | 0.41 | 0.41 | 0.43 | 0.47 | 0.82 | 0.82 | 0.54 | 0.49 | 0.46 | 0.49 | 0.48 |
| Interest Coverage | 14.9 | 14.7 | 8.0 | 7.6 | 9.7 | 8.4 | -2.8 | 3.5 | 27.9 | 20.0 | 6.8 | 5.7 | 10.4 |
| Equity | 20.7B | 20.5B | 20.0B | 22.0B | 21.7B | 21.8B | 18.8B | 18.4B | 23.6B | 26.3B | 24.5B | 23.7B | 23.9B |
| Total Assets | 45.5B | 44.2B | 46.2B | 50.2B | 50.2B | 53.9B | 51.8B | 57.9B | 61.0B | 63.1B | 60.1B | 58.0B | 62.1B |
| Total Liabilities | 24.3B | 22.9B | 25.3B | 27.3B | 27.4B | 31.3B | 32.1B | 38.1B | 35.5B | 34.5B | 32.6B | 31.4B | -102M |
| Intangibles | N/A | 156M | 148M | 142M | 307M | 283M | 248M | 218M | 202M | 183M | 151M | 123M | 123M |
| Retained Earnings | 22.0B | 25.2B | 26.4B | 29.2B | 31.0B | 32.0B | 29.0B | 28.3B | 38.2B | 45.6B | 47.0B | 48.0B | 48.9B |
| Working Capital | 6.6B | 7.9B | 8.5B | 8.2B | 7.0B | 5.8B | 6.6B | 4.3B | 6.7B | 9.4B | 8.2B | 9.1B | 10.2B |
| Current Assets | 16.6B | 14.9B | 16.8B | 19.3B | 17.7B | 19.0B | 15.8B | 21.2B | 24.1B | 26.2B | 23.7B | 23.2B | 27.8B |
| Current Liabilities | 10.0B | 7.0B | 8.3B | 11.1B | 10.7B | 13.2B | 9.3B | 16.9B | 17.5B | 16.8B | 15.5B | 14.1B | 17.7B |
| Per Share Data | |||||||||||||
| EPS | 6.85 | 7.99 | 4.94 | 9.16 | 7.29 | 5.84 | -3.50 | 2.27 | 29.04 | 24.92 | 8.58 | 7.57 | 13.67 |
| Owner EPS | 4.73 | 7.48 | 6.17 | 7.70 | 5.17 | 7.68 | -3.65 | 8.22 | 25.19 | 18.11 | 11.80 | 8.22 | 20.42 |
| Book Value | 39.02 | 41.11 | 43.21 | 49.55 | 50.59 | 52.57 | 46.31 | 44.99 | 59.35 | 74.31 | 75.93 | 76.49 | 80.10 |
| Cash Flow/Share | 8.00 | 11.24 | 10.40 | 12.35 | 10.21 | 13.34 | 2.33 | 14.30 | 31.67 | 26.03 | 20.70 | 18.78 | 14.30 |
| Dividends/Share | 1.05 | 1.70 | 2.40 | 2.80 | 3.20 | 3.60 | 3.92 | 3.92 | 3.92 | 4.08 | 4.28 | 4.52 | 4.72 |
| Shares Out. | 529.9M | 499.4M | 463.4M | 443.8M | 428.3M | 414.7M | 406.0M | 409.7M | 397.0M | 354.5M | 322.8M | 310.2M | 298.0M |
| Valuation | |||||||||||||
| P/E Ratio | 4.8 | 5.9 | 9.6 | 7.3 | 7.5 | 12.4 | N/A | 28.7 | 3.9 | 4.9 | 13.4 | 21.5 | 22.1 |
| P/FCF | 8.3 | 5.9 | 6.2 | 6.0 | 8.1 | 7.7 | N/A | 5.5 | 4.6 | 5.0 | 8.0 | 9.9 | N/A |
| EV/EBIT | 2.9 | 3.6 | 5.8 | 7.5 | 5.9 | 9.1 | N/A | 15.8 | 3.1 | 3.8 | 10.4 | 16.6 | 16.5 |
| Price/Book | 0.8 | 1.1 | 1.1 | 1.3 | 1.1 | 1.4 | 1.0 | 1.4 | 1.9 | 1.6 | 1.5 | 2.1 | 3.8 |
| Price/Sales | 0.1 | 0.2 | 0.2 | 0.2 | 0.3 | 0.2 | 0.3 | 0.2 | 0.2 | 0.3 | 0.3 | 0.4 | 0.7 |
| FCF Yield | 12.1% | 17.0% | 16.0% | 16.8% | 12.4% | 13.0% | -0.4% | 18.0% | 21.8% | 19.8% | 12.4% | 10.1% | N/A |
| Market Cap | 17.3B | 23.5B | 22.1B | 29.6B | 23.5B | 30.1B | 18.5B | 26.7B | 45.1B | 43.2B | 37.2B | 50.6B | 90.1B |
| Avg. Price | 32.89 | 40.42 | 39.96 | 50.14 | 74.76 | 64.88 | 46.86 | 60.84 | 97.88 | 117.17 | 138.68 | 141.11 | 302.50 |
| Year-End Price | 32.59 | 47.05 | 47.66 | 66.66 | 54.82 | 72.52 | 45.63 | 65.19 | 113.62 | 121.81 | 115.22 | 163.01 | 302.50 |
VALERO ENERGY CORP/TX passes 7 of 9 quality checks, indicating strong fundamentals.
VALERO ENERGY CORP/TX trades at 40.0x trailing earnings, compared to its 15-year median P/E of 9.6x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 17.7x vs a median of 6.2x. The company's 5-year average ROIC is 21.2% with a gross margin of 5.7%. Total shareholder yield (dividends + buybacks) is 4.8%. At current prices, the estimated annualized return to fair value is +33.5%.
VALERO ENERGY CORP/TX (VLO) has a net profit margin of 1.9%. This is a modest margin.
VALERO ENERGY CORP/TX (VLO) generated $5.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
VALERO ENERGY CORP/TX (VLO) has a debt-to-equity ratio of 0.49. This indicates a conservatively financed balance sheet.
VALERO ENERGY CORP/TX (VLO) reported earnings per share (EPS) of $7.57 in its most recent fiscal year.
VALERO ENERGY CORP/TX (VLO) has a return on equity (ROE) of 9.7%. This indicates moderate shareholder returns.
VALERO ENERGY CORP/TX (VLO) has a 5-year average gross margin of 5.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for VALERO ENERGY CORP/TX (VLO), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
VALERO ENERGY CORP/TX (VLO) has a book value per share of $76.49, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects refining fundamentals to remain supported by constrained global refining capacity, low product inventories in key markets, and limited announced capacity additions, with sour crude differentials expected to widen from increased OPEC and Canadian production. The company anticipates renewable diesel and ethanol segments to benefit from policy clarity on federal tax incentives, particularly as final guidance on the clean fuel production credit is expected to provide additional value, though renewable diesel economics remain subject to feedstock costs and market conditions. Capital investments for 2026 are expected to be approximately $1.7 billion focused on sustaining operations and shorter-cycle optimization projects, with the Port Arthur SAF production project expected to begin operations in the second half of 2026, while the company maintains its long-term capital allocation framework targeting a 40%-50% minimum payout ratio and 20%-30% net debt-to-cap ratio. Management remains committed to operational excellence and shareholder returns, with all excess free cash flow directed toward share buybacks and the company positioned to capture benefits from evolving low-carbon fuel policies and market dynamics.
Based on recent SEC filings and earnings calls, VALERO ENERGY CORP/TX (VLO) has provided the following forward guidance: Capital investments attributable to Valero: approximately $1.7 billion (2026); Port Arthur SAF production project start date: second half of 2026 (2026).
No recent press releases.