Valero Energy Corporation (VLO) AI Stock Analysis

Valero Energy Corporation manufactures, markets, and distributes transportation fuels and petrochemical products across global markets. The company operates through three key segments: Refining, Renewable Diesel, and Ethanol. Its infrastructure includes 15 petroleum refineries with a combined capacity of approximately 3.2 million barrels per day across the United States, Canada, and Europe. It also operates 12 ethanol plants with an annual production capacity of around 1.6 billion gallons. Valero converts animal fats, used cooking oils, and inedible corn oils into renewable diesel, and distributes fuels through over 7,000 retail outlets under brands such as Valero, Beacon, and Texaco.

Between FY2021 and FY2025, Valero experienced significant revenue swings, growing 75.6% to $113.98B in FY2021 and 54.8% to $176.38B in FY2022, before contracting 17.9% in FY2023, 10.3% in FY2024, and 5.5% in FY2025 to $122.69B. Its net income reached $11.53B in FY2022 before normalizing to $2.35B in FY2025 with a net margin of 1.9%. Over the five years from FY2020 to FY2025, revenue achieved a CAGR of 13.6%. In the latest quarter ended June 30, 2026, quarterly revenue grew 51.7% year-over-year, while quarterly earnings surged 453.5%, supported by trailing twelve months EPS of $23.99.

As of June 30, 2026, Valero held $7.87B in cash and short-term investments against total debt of $11.35B, resulting in net debt of $3.48B. The company maintained a current ratio of 1.64 and a debt-to-equity ratio of 0.45, with shareholders' equity standing at $25.00B. In FY2025, operating cash flow reached $5.83B, funding capital expenditures of $796.0M to deliver $5.03B in free cash flow. Valero allocated capital by repurchasing $2.60B in shares and paying $1.41B in dividends in FY2025, contributing to a 27.9% reduction in share count over five years.

At a last close of $444.71, Valero holds an enterprise value of $111.69B and trades at a trailing P/E of 18.5x, slightly above the median of 17.8x for its S&P 500 Energy peers. Its forward P/E stands at 10.2x, below the peer median of 14.3x. The stock trades at a price-to-sales multiple of 1.0x compared to the peer median of 2.4x, while EV to EBITDA matches the peer median at 8.2x. Over the past year, Valero delivered a 190.4% return, outperforming the S&P 500 benchmark return of 16.8%.

Valero offers a forward annual dividend of $4.80 per share, yielding 1.08% as of October 16, 2026. The dividend is distributed quarterly with a payout ratio of 19.5%. Valero has paid consecutive dividends for 38 years, generating a 5-year annualized dividend growth rate of 2.9%. The most recent ex-dividend date was July 31, 2026.

Wall Street coverage comprises 6 Strong Buy, 3 Buy, 9 Hold, and 2 Strong Sell ratings. The mean price target of $406.58 sits 8.6% below the last close of $444.71. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $52.59 on revenue of $160.21B. For the next fiscal year, 19 analysts project EPS to decline 9.9% to $47.38. Valero has beaten EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 22, 2026.

This page is an AI-written research summary of Valero Energy Corporation (VLO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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