VALERO ENERGY CORP/TX (VLO) Factsheet
VALERO ENERGY CORP/TX (VLO) Stock Analysis
Analysis from 10-Q filed 2025-10-23. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 12.6%. FCF margin 5.0%. D/E 0.5x. Source: 10-Q filed 2025-10-23.
| Metric | Value | Context |
|---|---|---|
| ROIC | 12.6% | Solid returns |
| FCF Margin | 5.0% | Healthy cash flow |
| Debt/Equity | 0.5x | Conservative leverage |
ROIC 12.6% — Top 50% of sector peers. FCF margin 5.0% — Bottom 50%.
Explore VALERO ENERGY CORP/TX: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for VLO: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: VALERO ENERGY CORP/TX earns 12.6% ROIC, Top 50% in Energy
ROIC TTM 12.6%, sector median 6.7%, Top 50%. DuPont: NOPAT margin 3.5% × asset turnover 2.1x. Gross margin 5.6%. Operating margin 4.7%. Source: 10-Q filed 2025-10-23.
| Metric | VLO | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.6% | Good | Above sector median of 6.7% |
| Return on Equity (ROE) | 17.6% | Good | Efficient use of shareholder equity |
| Gross Margin | 5.6% | Warning | Competitive pricing environment |
| Operating Margin | 4.7% | Warning | Moderate operational efficiency |
Cash Flow: VALERO ENERGY CORP/TX generates $6.3B FCF at 5.0% margin, positive NaN/8 quarters
FCF TTM $6.3B. FCF margin 5.0%, Bottom 50%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-23.
| Metric | VLO | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 5.0% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $6.3B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: VALERO ENERGY CORP/TX at 0.5x leverage
Debt/Equity 0.5x. Total debt $11.5B, cash & investments $5.9B. Source: 10-Q filed 2025-10-23.
| Metric | VLO | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.5x | Good | Conservative capital structure |
| Net Cash Position | $-5.6B | Warning | Net debt position |
Valuation: VALERO ENERGY CORP/TX trades at 18.0x earnings
P/E 18.0x. EV/Sales 0.7x. FCF yield 8.3%. Dividend yield 1.9%. Source: 10-Q filed 2025-10-23.
| Metric | VLO | Rating | Context |
|---|---|---|---|
| P/E Ratio | 18.0x | Adequate | Reasonable valuation |
| EV/Sales | 0.7x | Excellent | Attractive revenue multiple |
| FCF Yield | 8.3% | Excellent | Attractive cash return |
| Dividend Yield | 1.9% | Adequate | Growth focus over income |
Capital Allocation: VALERO ENERGY CORP/TX returns 5.7% shareholder yield
Total shareholder yield 5.7% (div 1.9% + buyback 3.8%). Capital returned $4.3B TTM. Source: 10-Q filed 2025-10-23.
| Metric | VLO | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.7% | Good | Dividend + buyback yield combined |
| Buyback Yield | 3.8% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $4.3B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.6% | Top 50% | 1.9x above |
| Free Cash Flow Margin | 5.0% | Bottom 50% | 0.7x below |
| Gross Margin | 5.6% | Bottom 10% | 0.2x below |
| Operating Margin | 4.7% | Bottom 50% | 0.5x below |
| Return on Equity (ROE) | 17.6% | Top 25% | 2.0x above |
| P/E Ratio | 18.0x | N/A | - |
Financial Scorecard
| Metric | VLO | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.6% | Good | Top 50% of sector (median: 6.7%) |
| Free Cash Flow Margin | 5.0% | Adequate | Bottom 50% of sector (median: 7.6%) |
| Gross Margin | 5.6% | Red flag | Bottom 10% of sector (median: 31.9%) |
| Debt to Equity Ratio | 48.1% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 18.0x | Adequate | Fair value |
| Free Cash Flow Yield | 8.3% | Excellent | High cash return |
Frequently Asked Questions
Q: What is VALERO ENERGY CORP/TX's Return on Invested Capital (ROIC)?
VALERO ENERGY CORP/TX (VLO) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.6%. Sector median 6.7%. Source: 10-Q filed 2025-10-23.
Q: What is VALERO ENERGY CORP/TX's Free Cash Flow Margin?
VALERO ENERGY CORP/TX (VLO) has a free cash flow margin of 5.0%, generating $6.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-23.
Q: What is VALERO ENERGY CORP/TX's P/E ratio and how does it compare to peers?
VALERO ENERGY CORP/TX (VLO) trades at a P/E ratio of 18.0x, which is above the sector median of N/A. EV/Sales 0.7x. FCF yield 8.3%. Source: 10-Q filed 2025-10-23.
Q: Does VALERO ENERGY CORP/TX pay a dividend?
VALERO ENERGY CORP/TX (VLO) currently pays a dividend yield of 1.9%. Total shareholder yield (dividend + buybacks) 5.7%. Source: 10-Q filed 2025-10-23.
Q: What is VALERO ENERGY CORP/TX's revenue and earnings growth?
VALERO ENERGY CORP/TX (VLO) declined revenue by 2.8% year-over-year. EPS +373.5% YoY. Source: 10-Q filed 2025-10-23.
Q: Is VALERO ENERGY CORP/TX buying back stock?
VALERO ENERGY CORP/TX (VLO) repurchased $2.9 billion of stock over the trailing twelve months. This represents a buyback yield of 3.8%. Source: 10-Q filed 2025-10-23.
Q: How does VALERO ENERGY CORP/TX compare to competitors in Energy?
Compared to other companies in Energy, VALERO ENERGY CORP/TX (VLO) shows: ROIC 12.6%, sector median 6.7% (Top 50%). FCF margin 5.0%, sector median 7.6% (Bottom 50%). Gross margin 5.6%, 26.3pp below sector median. These rankings are based on MetricDuck's analysis of all Energy companies with available SEC filings.
Q: What warning signs should I watch for with VALERO ENERGY CORP/TX?
No quantitative warning flags fired for VALERO ENERGY CORP/TX (VLO) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-23.
Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.