VLO Valero Energy
$446.24
▲ 0.5%Updated Oct 16, 2:25 PM ET
Report Card
VLO at a glance — five pillars scored 0–100 from real filed financials.
How the 0–100 rating is calculatedOverall: Neutral · 52/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
Price — Past Year
▲ Up 69.5% in the year to Jul 6, 2026
Key Metrics
Market Cap
$72.49B
P/E
31.89x
Forward P/E (est.)
22.78x
ROE
17.6%
Revenue Growth
-2.8%
EPS Growth
383.8%
Profit Margin
3.4%
FCF Yield
15.5%
Debt / Equity
0.45x
ROIC
8.0%
Interest Coverage
5.72x
Current Ratio
1.64x
Dividend Yield
2.0%
Implied Growth (rev. DCF)
—
Rating Score
52/100
Business Overview
Valero Energy (VLO) is a large-cap company in the Oil & Gas Refining & Marketing industry, part of the Energy sector of the S&P 500, with a market value around $72.49B.
In its latest reported year it generated about $122.69B in revenue and $2.35B in net profit.
Our model rates VLO Neutral (52/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Economic Moat
Evidence of durable competitive advantage in the filed financials (10 years of history).
Profit margins and economic moats, explainedThe numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
4.6% average over the last 3 years
±3.0 pts around 3.8% across 10 years
grew in 4 of the last 9 year-over-year periods
positive in 9 of 10 years
8.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical Analysis (Educational)
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what VLO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. VLO trades near $446.24, above its 50-day average ($249.37) and 200-day average ($205.37). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 58 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. VLO's is $9.84 (~2.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. In the month to Jul 6, 2026, VLO found buyers near $232.72 (support) and sellers near $274.92 (resistance); its 52-week range then was $130.78–$274.92. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. The indicators were last computed on Jul 6, 2026; the price is current.
Revenue Growth
4Y CAGR
1.9%
Revenue moved from $75.66B in 2016 to $122.69B in 2025, a 5.5% compound annual growth rate. The most recent year declined 2.8% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?
Profitability
Gross Margin
5.6%
Operating Margin
2.6%
Net Margin
1.9%
ROE
17.6%
Valero Energy keeps about 3.4% of each sales dollar as net profit, with a 5.6% gross margin and 2.6% operating margin. Return on equity is 17.6% and return on invested capital about 8.0%. Thin margins leave less cushion if costs rise.
Debt Analysis
Total Debt
$8.26B
Net Debt
$387.00M
Net Debt / EBITDA
0.12x
Debt / Equity
0.45x
Leverage: debt-to-equity is 0.4x, and operating profit covers interest about 5.7x, with a current ratio of 1.6x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $8.26B of total debt against $7.87B of cash.
Cash Flow Analysis
Operating CF
$5.83B
Free Cash Flow
$5.83B
FCF Margin
4.7%
In the latest year Valero Energy produced about $5.83B of operating cash flow and $5.83B of free cash flow after capital spending. That is a free-cash-flow yield of about 15.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Dividend Safety
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
What to look for in a dividend stockThe dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
2.0%
Per share (latest FY)
$4.52
Total paid (latest FY)
$1.41B
History on record
10 years
dividend uses 24% of free cash flow
60% of net income paid out
total dividends increased 1 year in a row
payout was cut at least once in the last 10 years
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
Valuation Analysis
P/E
31.89x
P/S
0.6x
P/B
3.83x
EV / EBITDA
—
VLO trades at 31.9x trailing earnings (about 22.8x on estimated forward earnings), 0.6x sales, and 3.8x book value. That is a premium multiple that needs growth to justify it.
Metrics vs. Sector Range
Where VLO sits versus the Energy companies we cover.
Bands show the middle half (25th–75th percentile) of the 47 Energy companies in our coverage that have fundamentals data — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
Sector Peer Comparison
How VLO stacks up against its Energy peers — valuation, profitability, and growth versus the sector median.
Among the 47 rated Energy companies we cover, VLO ranks #27 by our overall rating. It trades at a premium versus the sector on earnings (31.9x P/E vs. 21.4x median) with a higher return on equity (17.6% vs. 13.3%) and slower revenue growth (-2.8% vs. 0.7%).
P/E vs sector
31.9x
median 21.4x
ROE vs sector
17.6%
median 13.3%
Growth vs sector
-2.8%
median 0.7%
Sector rank
#27
of 47 rated
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Energy companies by sub-industry and size, preferring ones with full data. Sector medians and rank use the 47 rated companies among the 57 Energy stocks we cover. Educational, not a recommendation.
5-Year Projection Model
Project revenue → earnings → price. Edit the assumptions to build your own case.
What drives this projection, and its limits2030 scenario price range (Base Case)
$499.06 – $840.51
vs. $446.24 today · implied CAGR 2% – 13%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $126.37B | $130.16B | $134.06B | $138.09B | $142.23B |
| Net income | $3.79B | $3.90B | $4.02B | $4.14B | $4.27B |
| EPS | $23.34 | $24.04 | $24.76 | $25.50 | $26.27 |
| Share price (low) | $443.40 | $456.71 | $470.41 | $484.52 | $499.06 |
| Share price (high) | $746.79 | $769.19 | $792.27 | $816.03 | $840.51 |
| CAGR (low–high) | -1% / 67% | 1% / 31% | 2% / 21% | 2% / 16% | 2% / 13% |
Educational scenario model, not a forecast or investment advice. It starts from the latest annual revenue in SEC filings. By default, growth is trailing revenue growth (held between 3% and 45% a year), the net margin is the latest one (held between 3% and 50%, so a loss-making company is modeled with a small profit), and the Base case P/E runs from 60% to 100% of today's. Carrying recent growth forward five years can miss badly in either direction. Outputs are only as good as the assumptions.
Bull Case
The case for VLO:
- Strong return on equity (17.6%) shows capital is put to work well.
- Healthy free-cash-flow yield (~15.5%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.4x) lowers risk.
- Pays a 2.0% dividend on top of any price gains.
Bear Case
The case against VLO:
- Revenue growth is slow/negative (-2.8%), limiting the upside engine.
- Thin net margins (3.4%) leave little room for error.
Key Risks
Valuation risk — at 31.9x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (-2.8%) leaves little margin for execution missteps.
Margin risk — thin profitability (3.4%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
Investment Thesis
On balance, the picture is mixed: Valero Energy is a large-cap energy business with shrinking revenue, with modest profitability, and a sound balance sheet. It trades at 31.9x earnings, which our model scores Neutral (52/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 26 Wall Street analysts covering VLO recommend (September 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
VLO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen. How to read a 10-K
In the Idea Lab
VLO — frequently asked questions
Is VLO a good stock to buy?
We don't give buy or sell advice. Our model rates Valero Energy Neutral (52/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is VLO's rating on The Stocks School?
Valero Energy currently scores 52/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does VLO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Valero Energy's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for VLO calculated?
It's a scenario model. It starts from the latest annual revenue and net margin in SEC filings, grows revenue at an assumed rate (trailing revenue growth by default), and applies a P/E range built around today's multiple to show the resulting share-price range. When a stock has no growth or P/E data, the starting values are placeholders. It's a tool for thinking, not a prediction.
Is this VLO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell VLO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.