Valero Energy Corporation (VLO) Stock

Valero Energy Corporation trades at a P/E ratio of 70.84, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 17.45 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 4.62 indicates a premium valuation even accounting for growth.

With a beta of 1.07, Valero Energy Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.27 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Valero Energy Corporation achieves a profit margin of 0.65%, meaning it retains $0.65 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 3.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 2.76% and ROA at 2.20%, the company achieves moderate returns on invested capital.

Valero Energy Corporation's revenue declined by 14.60% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 15.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against OIL & GAS REFINING & MARKETING industry averages for proper context.

Valero Energy Corporation offers a dividend yield of 2.51%, paying $4.40 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Jul 31, 2025.

The dividend sustainability can be assessed through the payout ratio - Valero Energy Corporation pays $4.40 per share in dividends against earnings of $2.43 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Sep 2, 2025.

Valero Energy Corporation has a market capitalization of $54.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 310.65M shares outstanding, the company's ownership is relatively concentrated. As a participant in the OIL & GAS REFINING & MARKETING industry, it competes with other firms in this sector.

Valero Energy Corporation's book value per share is $77.51, while the current stock price is $170.36, resulting in a price-to-book (P/B) ratio of 2.20. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

20 analysts cover VLO with 65% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $168.17 implies -1.3% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 8 Buy, 7 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.