NYSE · Energy

Valero Energy Corporation

VLO · Oil & Gas Refining & Marketing

$250.78

▲ 3.91 (1.58%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Valero Energy Corporation at $250.78.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability F

Gross Profit Margin 4.4%

Operating Margin 3.5%

Net Income Margin 1.9%

Fin. Health C

Years to Pay Off Debt 5.0 yrs

Working Capital vs Long-Term Debt -$569M

Working Capital $9.1B

Valuation F

Margin of Safety 0.0%

Price-to-Book 3.16x

Cash Flow B

Free Cash Flow $5.0B

CapEx % of Net Income 33.9%

Owner Earnings $6.3B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $75.0B

Enterprise Value $82.1B

P/E (TTM) 18.31

Dividend Yield 1.86%

Exchange NYSE

Key Margins

Gross Profit 4.4%

Operating Margin 3.5%

Net Margin 1.9%

Company Info

Sector Energy

Industry Oil & Gas Refining & Marketing

Employees 9785

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Valero Energy Corporation at $250.78.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $250.78, the stock trades at a 116% premium to its Graham Number of $116.26. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Valero Energy Corporation

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB) and Conventional Blendstock for Oxygenate Blending (CBOB) gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company also owns and operates renewable diesel and ethanol plants, as well as produces and sells renewable diesel, renewable naphtha, and neat sustainable aviation fuel under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distillers grains, syrup, and inedible distillers corn oil to animal feed customers. 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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	4.4% ▲	3.7%	8.9%	9.5%	N/A
Operating Margin %	3.5% ▲	2.9%	8.2%	8.9%	N/A
Net Income %	1.9% ▼	2.1%	6.1%	6.5%	N/A
Diluted EPS	7.57 ▼	8.58	24.92	29.04	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$58.0B	$60.1B	$63.1B	$61.0B	N/A
Total Debt	$11.7B ↑	$11.5B	$12.6B	$12.7B	N/A
Working Capital	$9.1B ▲	$8.2B	$9.4B	$6.7B	N/A
Years to Pay Debt	4.98	4.17	1.43	1.10	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$5.0B ▼	$5.8B	$8.3B	$10.9B	N/A
Owner Earnings	$6.3B	$6.5B	$12.4B	$15.7B	N/A
CapEx % of Net Income	33.9%	32.7%	10.3%	14.6%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-286,143	0	0	-13,664
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	7,850,000	7,028,000	15,061,000	18,403,000
Total Unusual Items	-1,131,000	0	0	-61,000
Total Unusual Items Excluding Goodwill	-1,131,000	0	0	-61,000
Net Income From Continuing Operation Net Minority Interest	2,348,000	2,770,000	8,835,000	11,528,000
Reconciled Depreciation	3,158,000	2,774,000	2,701,000	2,473,000
Reconciled Cost Of Revenue	117,318,000	125,121,000	131,877,000	159,632,000
EBITDA	6,719,000	7,028,000	15,061,000	18,342,000
EBIT	3,561,000	4,254,000	12,360,000	15,869,000
Net Interest Income	-556,000	-556,000	-592,000	-562,000
Interest Expense	556,000	556,000	592,000	562,000
Interest Income			293,000	223,000	171,000
Normalized Income	3,192,857	2,770,000	8,835,000	11,575,336
Net Income From Continuing And Discontinued Operation	2,348,000	2,770,000	8,835,000	11,528,000
Total Expenses	118,375,000	126,126,000	132,908,000	160,632,000
Total Operating Income As Reported	3,181,000	3,755,000	11,858,000	15,690,000
Diluted Average Shares	309,000	322,000	353,000	396,000
Basic Average Shares	309,000	322,000	353,000	395,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	2,341,000	2,762,000	8,808,000	11,485,000
Net Income Common Stockholders	2,341,000	2,762,000	8,808,000	11,485,000
Otherunder Preferred Stock Dividend	7,000	8,000	27,000	43,000
Net Income	2,348,000	2,770,000	8,835,000	11,528,000
Minority Interests	102,000	-236,000	-314,000	-351,000
Net Income Including Noncontrolling Interests	2,246,000	3,006,000	9,149,000	11,879,000
Net Income Continuous Operations	2,246,000	3,006,000	9,149,000	11,879,000
Tax Provision	759,000	692,000	2,619,000	3,428,000
Pretax Income	3,005,000	3,698,000	11,768,000	15,307,000
Other Income Expense	-751,000	499,000	502,000	118,000
Other Non Operating Income Expenses	380,000	499,000	502,000	179,000
Special Income Charges	-1,131,000	0	0	-61,000
Gain On Sale Of Business				0	62,000
Other Special Charges			-11,000	-14,000	193,000
Impairment Of Capital Assets	1,131,000	0	0	61,000
Earnings From Equity Interest			198,000	118,000
Net Non Operating Interest Income Expense	-556,000	-556,000	-592,000	-562,000
Interest Expense Non Operating	556,000	556,000	592,000	562,000
Interest Income Non Operating			293,000	223,000	171,000
Operating Income	4,312,000	3,755,000	11,858,000	15,751,000
Operating Expense	1,057,000	1,005,000	1,031,000	1,000,000
Other Operating Expenses	15,000	44,000	33,000	66,000
Selling General And Administration	1,042,000	961,000	998,000	934,000
General And Administrative Expense	1,042,000	961,000	998,000	934,000
Other Gand A	1,042,000	961,000	998,000	934,000
Salaries And Wages			0	58,000	0
Gross Profit	5,369,000	4,760,000	12,889,000	16,751,000
Cost Of Revenue	117,318,000	125,121,000	131,877,000	159,632,000
Total Revenue	122,687,000	129,881,000	144,766,000	176,383,000
Excise Taxes	6,748,000	5,907,000	5,765,000	5,194,000
Operating Revenue	129,435,000	135,788,000	150,531,000	181,577,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	374,561	358,638	340,200	301,373
Ordinary Shares Number	298,940	314,864	333,302	372,129
Share Issued	673,502	673,502	673,502	673,502
Net Debt	5,931,000	5,806,000	6,100,000	6,773,000
Total Debt	11,703,000	11,540,000	12,637,000	12,722,000
Tangible Book Value	23,342,000	24,101,000	25,903,000	23,099,000
Invested Capital	34,344,000	34,975,000	37,870,000	35,196,000
Working Capital	9,101,000	8,242,000	9,419,000	6,672,000
Net Tangible Assets	23,342,000	24,101,000	25,903,000	23,099,000
Capital Lease Obligations	1,084,000	1,077,000	1,113,000	1,087,000
Common Stock Equity	23,725,000	24,512,000	26,346,000	23,561,000
Total Capitalization	33,395,000	34,232,000	36,464,000	34,087,000
Total Equity Gross Minority Interest	26,605,000	27,521,000	28,524,000	25,468,000
Minority Interest	2,880,000	3,009,000	2,178,000	1,907,000
Stockholders Equity	23,725,000	24,512,000	26,346,000	23,561,000
Gains Losses Not Affecting Retained Earnings	-469,000	-1,272,000	-870,000	-1,359,000
Other Equity Adjustments	-469,000	-1,272,000	-870,000	-1,359,000
Treasury Stock	30,753,000	28,178,000	25,322,000	20,197,000
Retained Earnings	47,959,000	47,016,000	45,630,000	38,247,000
Additional Paid In Capital	6,981,000	6,939,000	6,901,000	6,863,000
Capital Stock	7,000	7,000	7,000	7,000
Common Stock	7,000	7,000	7,000	7,000
Total Liabilities Net Minority Interest	31,383,000	32,622,000	34,532,000	35,514,000
Total Non Current Liabilities Net Minority Interest	17,274,000	17,127,000	17,730,000	18,053,000
Other Non Current Liabilities	441,000	429,000	238,000	239,000
Employee Benefits	423,000	423,000	476,000	448,000
Non Current Pension And Other Postretirement Benefit Plans	423,000	423,000	476,000	448,000
Non Current Accrued Expenses	304,000	292,000	335,000	250,000
Tradeand Other Payables Non Current		0	167,000	301,000	367,000
Non Current Deferred Liabilities	5,146,000	5,267,000	5,349,000	5,217,000
Non Current Deferred Taxes Liabilities	5,146,000	5,267,000	5,349,000	5,217,000
Long Term Debt And Capital Lease Obligation	10,335,000	10,419,000	10,871,000	11,302,000
Long Term Capital Lease Obligation	665,000	699,000	753,000	776,000
Long Term Debt	9,670,000	9,720,000	10,118,000	10,526,000
Long Term Provisions	625,000	297,000	294,000	296,000
Current Liabilities	14,109,000	15,495,000	16,802,000	17,461,000
Current Deferred Liabilities	60,000	82,000	40,000	129,000
Current Deferred Revenue	60,000	82,000	40,000	129,000
Current Debt And Capital Lease Obligation	1,368,000	1,121,000	1,766,000	1,420,000
Current Capital Lease Obligation	419,000	378,000	360,000	311,000
Current Debt	949,000	743,000	1,406,000	1,109,000
Other Current Borrowings	949,000	743,000	1,406,000	1,109,000
Pensionand Other Post Retirement Benefit Plans Current	49,000	73,000	55,000	35,000
Current Provisions	32,000	47,000	23,000	21,000
Payables And Accrued Expenses	12,600,000	14,172,000	14,918,000	15,856,000
Current Accrued Expenses	843,000	550,000	762,000	719,000
Interest Payable	76,000	68,000	83,000	67,000
Payables	11,757,000	13,622,000	14,156,000	15,137,000
Total Tax Payable	1,618,000	1,530,000	1,589,000	2,409,000
Income Tax Payable	68,000	170,000	137,000	841,000
Accounts Payable	10,139,000	12,092,000	12,567,000	12,728,000
Total Assets	57,988,000	60,143,000	63,056,000	60,982,000
Total Non Current Assets	34,778,000	36,406,000	36,835,000	36,849,000
Other Non Current Assets	976,000	1,158,000	1,896,000	1,406,000
Defined Pension Benefit	948,000	724,000
Non Current Deferred Assets	2,751,000	2,689,000	2,382,000	2,139,000
Non Current Accounts Receivable	347,000	317,000	56,000	26,000
Investments And Advances	684,000	695,000	713,000	724,000
Long Term Equity Investment	684,000	695,000	713,000	724,000
Investmentsin Joint Venturesat Cost	684,000	695,000	713,000	724,000
Goodwill And Other Intangible Assets	383,000	411,000	443,000	462,000
Other Intangible Assets	123,000	151,000	183,000	202,000
Goodwill	260,000	260,000	260,000	260,000
Net PPE	28,689,000	30,412,000	31,345,000	32,092,000
Accumulated Depreciation	-22,474,000	-23,054,000	-21,459,000	-19,598,000
Gross PPE	51,163,000	53,466,000	52,804,000	51,690,000
Construction In Progress	617,000	604,000	689,000	1,324,000
Other Properties	7,552,000	7,497,000	7,209,000	6,958,000
Machinery Furniture Equipment	41,403,000	43,718,000	43,264,000	41,814,000
Buildings And Improvements	1,082,000	1,147,000	1,137,000	1,095,000
Land And Improvements	509,000	500,000	505,000	499,000
Current Assets	23,210,000	23,737,000	26,221,000	24,133,000
Other Current Assets	1,054,000	611,000	689,000	600,000
Prepaid Assets					400,000
Inventory	7,591,000	7,761,000	7,583,000	6,752,000
Finished Goods	4,182,000	4,016,000	3,790,000	3,579,000
Raw Materials	3,409,000	3,745,000	3,793,000	3,173,000
Receivables	9,877,000	10,708,000	12,525,000	11,919,000
Other Receivables	434,000	705,000	1,078,000	1,016,000
Taxes Receivable	236,000	272,000	409,000	142,000
Accounts Receivable	9,207,000	9,731,000	11,038,000	10,761,000
Allowance For Doubtful Accounts Receivable	-19,000	-20,000	-28,000	-30,000
Gross Accounts Receivable	9,226,000	9,751,000	11,066,000	10,791,000
Cash Cash Equivalents And Short Term Investments	4,688,000	4,657,000	5,424,000	4,862,000
Cash And Cash Equivalents	4,688,000	4,657,000	5,424,000	4,862,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	5,030,000	5,776,000	8,318,000	10,893,000
Repurchase Of Capital Stock	-2,598,000	-2,875,000	-5,136,000	-4,577,000
Repayment Of Debt	-7,668,000	-7,785,000	-2,682,000	-5,963,000
Issuance Of Debt	7,574,000	7,137,000	2,420,000	3,153,000
Capital Expenditure	-796,000	-907,000	-911,000	-1,681,000
Interest Paid Supplemental Data	533,000	556,000	562,000	570,000
Income Tax Paid Supplemental Data	699,000	843,000	3,494,000	3,288,000
End Cash Position	4,865,000	4,829,000	5,424,000	4,862,000
Beginning Cash Position	4,829,000	5,424,000	4,862,000	4,122,000
Effect Of Exchange Rate Changes	237,000	-248,000	139,000	-180,000
Changes In Cash	-201,000	-347,000	423,000	920,000
Financing Cash Flow	-4,182,000	-5,049,000	-6,941,000	-8,849,000
Cash Flow From Continuing Financing Activities	-4,182,000	-5,049,000	-6,941,000	-8,849,000
Net Other Financing Charges	-85,000	-142,000	-91,000	100,000
Cash Dividends Paid	-1,405,000	-1,384,000	-1,452,000	-1,562,000
Common Stock Dividend Paid	-1,405,000	-1,384,000	-1,452,000	-1,562,000
Net Common Stock Issuance	-2,598,000	-2,875,000	-5,136,000	-4,577,000
Common Stock Payments	-2,598,000	-2,875,000	-5,136,000	-4,577,000
Net Issuance Payments Of Debt	-94,000	-648,000	-262,000	-2,810,000
Net Long Term Debt Issuance	-94,000	-648,000	-262,000	-2,810,000
Long Term Debt Payments	-7,668,000	-7,785,000	-2,682,000	-5,963,000
Long Term Debt Issuance	7,574,000	7,137,000	2,420,000	3,153,000
Investing Cash Flow	-1,845,000	-1,981,000	-1,865,000	-2,805,000
Cash Flow From Continuing Investing Activities	-1,845,000	-1,981,000	-1,865,000	-2,805,000
Net Other Investing Changes	-1,049,000	-1,126,000	-992,000	-1,028,000
Net Investment Purchase And Sale	3,000	52,000	38,000	-95,000
Sale Of Investment	30,000	81,000	314,000	5,000
Purchase Of Investment	-27,000	-29,000	-276,000	-100,000
Net Business Purchase And Sale	-3,000	0	0	-1,000
Sale Of Business			0	32,000	270,000
Purchase Of Business	-3,000	0	0	-1,000
Capital Expenditure Reported	-796,000	-907,000	-911,000	-1,681,000
Operating Cash Flow	5,826,000	6,683,000	9,229,000	12,574,000
Cash Flow From Continuing Operating Activities	5,826,000	6,683,000	9,229,000	12,574,000
Change In Working Capital	-363,000	216,000	-2,536,000	-1,875,000
Change In Other Working Capital	-171,000	-579,000	-210,000	-249,000
Change In Payables And Accrued Expense	-1,778,000	-801,000	-1,221,000	845,000
Change In Accrued Expense	237,000	-168,000	-50,000	-5,000
Change In Payable	-2,015,000	-633,000	-1,171,000	850,000
Change In Account Payable	-2,016,000	-430,000	-169,000	521,000
Change In Tax Payable	1,000	-203,000	-1,002,000	329,000
Change In Income Tax Payable	1,000	-203,000	-1,002,000	329,000
Change In Prepaid Assets	99,000	320,000	-34,000	-180,000
Change In Inventory	362,000	-286,000	-684,000	-672,000
Change In Receivables	1,125,000	1,562,000	-387,000	-1,619,000
Other Non Cash Items	-149,000	774,000	-177,000	-249,000
Asset Impairment Charge	1,131,000	0	0	61,000
Deferred Tax	-197,000	-87,000	103,000	50,000
Deferred Income Tax	-197,000	-87,000	103,000	50,000
Depreciation Amortization Depletion	3,158,000	2,774,000	2,701,000	2,473,000
Depreciation And Amortization	3,158,000	2,774,000	2,701,000	2,473,000
Operating Gains Losses			-11,000	-14,000	131,000
Gain Loss On Sale Of Business			0	0	-62,000
Net Income From Continuing Operations	2,246,000	3,006,000	9,149,000	11,879,000

These metrics estimate what Valero Energy Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$116.26

Margin of Safety

Market Cap ÷ Company Value

1.26

P/B Ratio

3.16

Warren's Owner Earnings

$6.3B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$122.7B

vs > $1.5B revenue

❌ Strong Financial Condition

1.65x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.86%

vs Uninterrupted dividends

❌ Earnings Growth

-73.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

18.3x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

3.16x P/B (P/E×P/B: 57.8)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-27.34

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$160.26

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	33.9%	32.7%	10.3%	14.6%	N/A
Repurchase of Capital Stock	-$2.6B	-$2.9B	-$5.1B	-$4.6B	N/A
Free Cash Flow	$5.0B ▼	$5.8B ▼	$8.3B ▼	$10.9B •	N/A •
Warren's Owner Earnings	$6.3B	$6.5B	$12.4B	$15.7B	N/A

Peers & Industry

No auto-detected peers for Oil & Gas Refining & Marketing. You can manually compare VLO against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.58%

Low — management has little skin in the game

Return on Equity (ROE)

9.9%

Adequate — returns are moderate

Return on Assets (ROA)

4.0%

Fair — average asset utilization

Share Buybacks (Latest Year)

$2.6B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+1.4% YoY

Debt is roughly stable

Leadership Team

Lane Riggs

CEO, President & Chairman

Age 59

Pay: $7,628,070

0.325% of net income

Gary Simmons

Executive VP & COO

Age 60

Pay: $3,321,726

0.141% of net income

Eric Fisher

Senior Vice President of Product Supply, Trading & Wholesale

Age 56

Pay: $2,137,288

0.091% of net income

Harminder Bhullar

Senior VP & CFO

Age 44

Brian Donovan

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	12.59%	37,647,983
Blackrock Inc.	8.73%	26,108,968
State Street Corporation	6.08%	18,177,191
Charles Schwab Investment Management, Inc.	4.00%	11,950,982
Price (T.Rowe) Associates Inc	3.35%	10,024,362
Geode Capital Management, LLC	2.70%	8,073,146
Morgan Stanley	2.49%	7,437,933
NORGES BANK	2.28%	6,828,073

Risk Analysis

Beta (Market Risk)

0.57

Low volatility — more stable than the market

Short Interest

3.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.43x

Conservative balance sheet — low financial risk

Current Ratio

1.58x

Adequate liquidity

52-Week Price Range

Low: $115.65 Current: $250.78 High: $258.43

Currently at 95% of 52-week range

360investing