-1.79%
8.49%
2.50%
-17.76%
-4.25%
60.30%
57.75%
AI Spotlight on VLO
Company Description
Valero Energy Corporation manufactures, markets, and sells transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, and internationally.The company operates through three segments: Refining, Renewable Diesel, and Ethanol.It produces conventional, premium, and reformulated gasolines; gasoline meeting the specifications of the California Air Resources Board (CARB); diesel fuels, and low-sulfur and ultra-low-sulfur diesel fuels; CARB diesel; other distillates; jet fuels; blendstocks; and asphalts, petrochemicals, lubricants, and other refined petroleum products, as well as sells lube oils and natural gas liquids.
As of December 31, 2021, the company owned 15 petroleum refineries with a combined throughput capacity of approximately 3.2 million barrels per day; and 12 ethanol plants with a combined ethanol production capacity of approximately 1.6 billion gallons per year.It sells its refined products through wholesale rack and bulk markets; and through approximately 7,000 outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands.The company also produces and sells ethanol, dry distiller grains, syrup, and inedible corn oil primarily to animal feed customers.
In addition, it owns and operates crude oil and refined petroleum products pipelines, terminals, tanks, marine docks, truck rack bays, and other logistics assets; and owns and operates a plant that processes animal fats, used cooking oils, and inedible distillers corn oils into renewable diesel.The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997.Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.
Market Data
| Last Price | 133 |
| Change Percentage | -1.79% |
| Open | 136.88 |
| Previous Close | 135.42 |
| Market Cap ( Millions) | 42106 |
| Volume | 3099064 |
| Year High | 184.79 |
| Year Low | 116.84 |
| M A 50 | 132.31 |
| M A 200 | 144.11 |
Financial Ratios
| FCF Yield | 11.92% |
| Dividend Yield | 3.26% |
| ROE | 14.32% |
| Debt / Equity | 42.79% |
| Net Debt / EBIDTA | 71.00% |
| Price To Book | 1.67 |
| Price Earnings Ratio | 11.46 |
| Price To FCF | 8.39 |
| Price To sales | 0.31 |
| EV / EBITDA | 6.03 |
News
- Jan -30 - Valero Energy Corporation (VLO) Q4 2024 Earnings Call Transcript
- Jan -30 - Valero Energy's Q4 Earnings Beat on Higher Renewable Diesel Margins
- Jan -30 - Valero Energy Revenue Up, Growth Hit
- Jan -30 - Valero Energy (VLO) Beats Q4 Earnings and Revenue Estimates
- Jan -30 - 5 Stocks With Above-Market Yields Just Raised Payments Further
- Jan -30 - Valero Energy beats quarterly profit estimates
- Jan -30 - Valero Energy Reports 2024 Fourth Quarter and Full Year Results
- Jan -29 - Valero: Low Crack Spreads Offset Shareholder-Friendly Moves
- Jan -27 - What's in the Cards for Valero Energy in Fourth-Quarter Earnings?
- Jan -25 - Valero Energy (VLO) Sees a More Significant Dip Than Broader Market: Some Facts to Know
- Jan -17 - Valero Energy (VLO) Outperforms Broader Market: What You Need to Know
- Jan -17 - Valero Energy (VLO) Rises As Market Takes a Dip: Key Facts
- Jan -16 - Valero Energy Corporation Increases Regular Cash Dividend
- Jan -14 - Valero Energy (VLO) Soars 4.9%: Is Further Upside Left in the Stock?
- Jan -09 - Valero Energy (VLO) Laps the Stock Market: Here's Why
- Jan -03 - Valero Energy (VLO) Advances But Underperforms Market: Key Facts
- Dec -30 - Valero Energy (VLO) Ascends While Market Falls: Some Facts to Note
- Dec -24 - Valero Energy (VLO) Ascends But Remains Behind Market: Some Facts to Note
- Dec -13 - Zacks Industry Outlook Marathon Petroleum, Valero Energy and Galp Energia
- Dec -12 - 3 Stable Refining & Marketing Stocks With Good Potential
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Refining
Expected Growth : 4.0 %
What the company do ?
Valero Energy Corporation's Refining segment is involved in refining and marketing of petroleum products, including gasoline, diesel fuel, jet fuel, asphalt, and petrochemicals.
Why we expect these perspectives ?
Valero Energy Corporation's refining segment growth of 4.0% is driven by increased demand for refined products, improved refining margins, and strategic investments in high-return projects. Additionally, the company's focus on cost optimization, operational efficiency, and disciplined capital allocation contribute to its growth momentum.
Segment n°2 -> Ethanol
Expected Growth : 5.55 %
What the company do ?
Valero Energy Corporation's Ethanol segment produces ethanol and distiller's grains, with a focus on the production and sale of ethanol and related products.
Why we expect these perspectives ?
Valero Energy Corporation's ethanol segment growth of 5.55% is driven by increasing demand for renewable energy sources, government incentives for biofuels, and strategic partnerships to expand production capacity. Additionally, rising crude oil prices and favorable regulatory environment contribute to the growth.
Segment n°3 -> Renewable Diesel
Expected Growth : 13.93 %
What the company do ?
Valero Energy Corporation's Renewable Diesel is a low-carbon, drop-in replacement for traditional diesel fuel, produced from renewable resources like vegetable oils and animal fats.
Why we expect these perspectives ?
Valero Energy Corporation's Renewable Diesel segment growth of 13.93% is driven by increasing demand for low-carbon fuels, government incentives for renewable energy, and strategic partnerships to expand production capacity. Additionally, rising crude oil prices and tightening global fuel standards contribute to the growth, as companies seek alternative, environmentally friendly energy sources.
Valero Energy Corporation Products
| Product Range | What is it ? |
|---|---|
| Refined Products | Valero Energy Corporation refines crude oil into various petroleum products, including gasoline, diesel fuel, jet fuel, and petrochemicals. |
| Ethanol | Valero Energy Corporation produces ethanol, a biofuel used as a gasoline additive to increase octane and reduce emissions. |
| Renewable Diesel | Valero Energy Corporation produces renewable diesel, a low-carbon, high-performance diesel fuel made from renewable resources. |
| Petrochemicals | Valero Energy Corporation produces petrochemicals, including ethylene, propylene, and butadiene, used in the production of plastics, fibers, and other materials. |
| Lubricants | Valero Energy Corporation produces lubricants, including motor oils, transmission fluids, and industrial lubricants. |
| Asphalt | Valero Energy Corporation produces asphalt, a petroleum-based product used in road construction and maintenance. |
Valero Energy Corporation's Porter Forces
Threat Of Substitutes
Valero Energy Corporation faces moderate threat from substitutes due to the availability of alternative energy sources such as solar, wind, and hydroelectric power. However, the high cost of switching to these alternatives and the lack of infrastructure to support widespread adoption mitigate this threat.
Bargaining Power Of Customers
Valero Energy Corporation's customers have low bargaining power due to the lack of concentration in the market and the high switching costs associated with changing energy providers.
Bargaining Power Of Suppliers
Valero Energy Corporation's suppliers have moderate bargaining power due to the presence of a few large suppliers of crude oil and refined products. However, the company's large scale of operations and diversified supply chain mitigate this power.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the energy industry, including the need for significant capital investments and regulatory approvals.
Intensity Of Rivalry
The intensity of rivalry in the energy industry is high due to the presence of several large players, including ExxonMobil, Chevron, and ConocoPhillips, which leads to intense competition for market share and pricing power.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 27.09% |
| Debt Cost | 6.22% |
| Equity Weight | 72.91% |
| Equity Cost | 11.59% |
| WACC | 10.13% |
| Leverage | 37.15% |
Valero Energy Corporation : Quality Control
Valero Energy Corporation passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MPC | Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company primarily in the United States. It operates in two segments, Refining & Marketing, and Midstream. The … |
| EOG | EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. Its principal producing areas are in New Mexico … |
| PSX | Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and … |
| FANG | Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian … |
| MPLX | MPLX LP owns and operates midstream energy infrastructure and logistics assets primarily in the United States. It operates in two segments, Logistics and Storage, and Gathering and Processing. The company … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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MPLX
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Diamondback Energy
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EOG Resources
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Valero Energy
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1-Year Total Return ->
5
Phillips 66
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1-Year Total Return ->
6
