VALERO ENERGY CORP/TX (VLO) Stock Analysis

Analysis from 10-Q filed 2025-10-23. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 21.1%. FCF margin 7.8%. D/E 0.5x. Source: 10-Q filed 2025-10-23.

Metric	Value	Context
ROIC	21.1%	Above industry average
FCF Margin	7.8%	Healthy cash flow
Debt/Equity	0.5x	Conservative leverage

ROIC 21.1% — Top 10% of sector peers. FCF margin 7.8% — Bottom 50%.

Explore VALERO ENERGY CORP/TX: Earnings History | Filings

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.

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Profitability: VALERO ENERGY CORP/TX earns 21.1% ROIC, Top 10% in Energy

ROIC TTM 21.1%, sector median 6.3%, Top 10%. DuPont: NOPAT margin 5.6% × asset turnover 2.3x. Gross margin 8.0%. Operating margin 7.2%. Source: 10-Q filed 2025-10-23.

Metric	VLO	Rating	Context
Return on Invested Capital (ROIC)	21.1%	Excellent	Above sector median of 6.3%
Return on Equity (ROE)	30.1%	Excellent	Efficient use of shareholder equity
Gross Margin	8.0%	Warning	Competitive pricing environment
Operating Margin	7.2%	Adequate	Moderate operational efficiency

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Cash Flow: VALERO ENERGY CORP/TX generates $10.9B FCF at 7.8% margin, positive NaN/8 quarters

FCF TTM $10.9B. FCF margin 7.8%, 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	7.8%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$10.9B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: VALERO ENERGY CORP/TX at 0.5x leverage

Debt/Equity 0.5x. Total debt $11.3B, cash & investments $7.9B. Source: 10-Q filed 2025-10-23.

Metric	VLO	Rating	Context
Debt to Equity	0.5x	Good	Conservative capital structure
Net Cash Position	$-3.5B	Warning	Net debt position

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Valuation: VALERO ENERGY CORP/TX trades at 10.9x earnings

P/E 10.9x. EV/Sales 0.6x. FCF yield 13.9%. Dividend yield 1.8%. Source: 10-Q filed 2025-10-23.

Metric	VLO	Rating	Context
P/E Ratio	10.9x	Adequate	Reasonable valuation
EV/Sales	0.6x	Excellent	Attractive revenue multiple
FCF Yield	13.9%	Excellent	Attractive cash return
Dividend Yield	1.8%	Adequate	Growth focus over income

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Capital Allocation: VALERO ENERGY CORP/TX returns 7.9% shareholder yield

Total shareholder yield 7.9% (div 1.8% + buyback 6.2%). Capital returned $6.2B TTM. Source: 10-Q filed 2025-10-23.

Metric	VLO	Rating	Context
Total Shareholder Yield	7.9%	Excellent	Dividend + buyback yield combined
Buyback Yield	6.2%	Good	Active share repurchases
Total Capital Returned (TTM)	$6.2B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	21.1%	Top 10%	3.3x above
Free Cash Flow Margin	7.8%	Bottom 50%	1.0x below
Gross Margin	8.0%	Bottom 25%	0.3x below
Operating Margin	7.2%	Bottom 50%	0.7x below
Return on Equity (ROE)	30.1%	Top 10%	3.4x above
P/E Ratio	10.9x	N/A	-

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Financial Scorecard

Metric	VLO	Rating	Sector Context
Return on Invested Capital (ROIC)	21.1%	Excellent	Top 10% of sector (median: 6.3%)
Free Cash Flow Margin	7.8%	Adequate	Bottom 50% of sector (median: 8.2%)
Gross Margin	8.0%	Red flag	Bottom 25% of sector (median: 24.0%)
Debt to Equity Ratio	45.4%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	10.9x	Adequate	Attractively valued
Free Cash Flow Yield	13.9%	Excellent	High cash return

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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 21.1%. Sector median 6.3%. 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 7.8%, generating $10.9 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 10.9x, which is above the sector median of N/A. EV/Sales 0.6x. FCF yield 13.9%. 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 1.8%. Total shareholder yield (dividend + buybacks) 7.9%. Source: 10-Q filed 2025-10-23.

Q: What is VALERO ENERGY CORP/TX's revenue and earnings growth?

VALERO ENERGY CORP/TX (VLO) grew revenue by 12.6% year-over-year. EPS +893.9% YoY. Source: 10-Q filed 2025-10-23.

Q: Is VALERO ENERGY CORP/TX buying back stock?

VALERO ENERGY CORP/TX (VLO) repurchased $4.8 billion of stock over the trailing twelve months. This represents a buyback yield of 6.2%. 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 21.1%, sector median 6.3% (Top 10%). FCF margin 7.8%, sector median 8.2% (Bottom 50%). Gross margin 8.0%, 16.0pp 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.

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Data Source: Data sourced from 10-Q filed 2025-10-23. TTM metrics as of Q2 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.