Valero Energy Corp. (VLO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

HF Sinclair Corp.

Par Pacific Holdings, Inc.

CVR Energy, Inc.

Valero Energy Corp.

Icahn Enterprises LP

Star Group LP

Marathon Petroleum Corp.

Phillips 66

Delek US Holdings, Inc.

PBF Energy, Inc.

Calumet Specialty Products Partners LP

Why is Valero Energy Corp. ?

High Management Efficiency with a high ROCE of 22.99%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.31

Healthy long term growth as Operating profit has grown by an annual rate 0.12%

Market Beating Performance

The stock has generated a return of 28.79% in the last 1 year, much higher than market (S&P 500) returns of 12.94%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Valero Energy Corp. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Valero Energy Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Valero Energy Corp.

30.49%

0.39

37.66%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.16%

EBIT Growth (5y)

0.12%

EBIT to Interest (avg)

12.31

Debt to EBITDA (avg)

1.79

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

3.97

Tax Ratio

6.74%

Dividend Payout Ratio

49.90%

Pledged Shares

Institutional Holding

89.18%

ROCE (avg)

22.99%

ROE (avg)

22.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.16

EV to EBIT

34.61

EV to EBITDA

15.78

EV to Capital Employed

2.71

EV to Sales

0.63

PEG Ratio

Dividend Yield

102.37%

ROCE (Latest)

7.82%

ROE (Latest)

9.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.11% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 10.22

OPERATING PROFIT MARGIN(Q)

Highest at 6.3 %

PRE-TAX PROFIT(Q)

At USD 1,020 MM has Grown at 75.11%

NET PROFIT(Q)

At USD 766.9 MM has Grown at 43.69%

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 4,253 MM

NET PROFIT(HY)

At USD 1,323.9 MM has Grown at -38.27%

ROCE(HY)

Lowest at 3.07%

INVENTORY TURNOVER RATIO(HY)

Lowest at 15.49 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.22 times

NET SALES(Q)

Lowest at USD 29,886 MM

Here's what is working for Valero Energy Corp.

Operating Profit Margin

Highest at 6.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At USD 1,020 MM has Grown at 75.11%

over average net sales of the previous four periods of USD 582.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 766.9 MM has Grown at 43.69%

over average net sales of the previous four periods of USD 533.72 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Dividend per share

Highest at USD 10.22

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -3.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 814 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Valero Energy Corp.

Operating Cash Flow

Lowest at USD 4,253 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

Lowest at USD 29,886 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Inventory Turnover Ratio

Lowest at 15.49 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 10.22 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio