NYSE · Energy

Valero Energy Corporation

VLO · Oil & Gas Refining & Marketing

$236.30

▼ -3.47 (-1.45%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 6.3%

Operating Margin 5.3%

Net Income Margin 3.9%

Fin. Health

D⤢

Years to Pay Off Debt 9.1 yrs

Working Capital vs Long-Term Debt -$292M

Working Capital $10.2B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 2.94x

Cash Flow

A⤢

Free Cash Flow $1.2B

CapEx % of Net Income 13.1%

Owner Earnings $2.3B

Profitability

Gross Profit Margin 6.3%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 5.3%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 3.9%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 9.1 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$292M

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $10.2B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $1.2B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 13.1%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.3B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Market Data

Market Cap $70.2B

Enterprise Value $81.3B

P/E (TTM) 17.25

Dividend Yield 1.91%

Exchange NYSE

Key Margins

Gross Profit 6.3%

Operating Margin 5.3%

Net Margin 3.9%

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 $236.30.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $236.30, the stock trades at a 170% premium to its Graham Number of $87.37. 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.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	6.3%▲	6.2%
Operating Margin %	5.3%▲	5.2%
Net Income %	3.9%▲	3.7%
Diluted EPS	4.22▲	3.73

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$62.1B	$58.0B	N/A
Total Debt	$11.5B▼	$11.7B•	N/A
Working Capital	$10.2B▲	$9.1B•	N/A
Years to Pay Debt	9.10	10.32	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$1.2B▼	$1.8B•	N/A
Owner Earnings	$2.3B	$2.2B	N/A
CapEx % of Net Income	13.1%	19.4%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	0	0
Tax Rate For Calcs	0	0
Normalized EBITDA	2,703,000	2,480,000
Total Unusual Items	0	0
Total Unusual Items Excluding Goodwill	0	0
Net Income From Continuing Operation Net Minority Interest	1,263,000	1,134,000
Reconciled Depreciation	840,000	817,000
Reconciled Cost Of Revenue	30,341,000	28,480,000
EBITDA	2,703,000	2,480,000
EBIT	1,863,000	1,663,000
Net Interest Income	-140,000	-139,000
Interest Expense	140,000	139,000
Normalized Income	1,263,000	1,134,000
Net Income From Continuing And Discontinued Operation	1,263,000	1,134,000
Total Expenses	30,650,000	28,797,000
Total Operating Income As Reported	1,731,000	1,575,000
Diluted Average Shares	298,000	303,000
Basic Average Shares	298,000	303,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,259,000	1,130,000
Net Income Common Stockholders	1,259,000	1,130,000
Otherunder Preferred Stock Dividend	4,000	4,000
Net Income	1,263,000	1,134,000
Minority Interests	-59,000	-35,000
Net Income Including Noncontrolling Interests	1,322,000	1,169,000
Net Income Continuous Operations	1,322,000	1,169,000
Tax Provision	401,000	355,000
Pretax Income	1,723,000	1,524,000
Other Income Expense	132,000	88,000
Other Non Operating Income Expenses	132,000	88,000
Special Income Charges	0	0
Write Off	0
Net Non Operating Interest Income Expense	-140,000	-139,000
Interest Expense Non Operating	140,000	139,000
Operating Income	1,731,000	1,575,000
Operating Expense	309,000	317,000
Other Operating Expenses	24,000	2,000
Selling General And Administration	285,000	315,000
General And Administrative Expense	285,000	315,000
Other Gand A	285,000	315,000
Gross Profit	2,040,000	1,892,000
Cost Of Revenue	30,341,000	28,480,000
Total Revenue	32,381,000	30,372,000
Excise Taxes	1,725,000	1,755,000
Operating Revenue	34,106,000	32,127,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	376,566	374,561
Ordinary Shares Number	296,935	298,940
Share Issued	673,502	673,502
Net Debt	5,758,000	5,931,000
Total Debt	11,491,000	11,703,000
Tangible Book Value	23,870,000	23,342,000
Invested Capital	35,361,000	34,344,000
Working Capital	10,173,000	9,101,000
Net Tangible Assets	23,870,000	23,342,000
Capital Lease Obligations		1,084,000	1,077,000
Common Stock Equity	23,870,000	23,725,000
Total Capitalization	34,335,000	33,395,000
Total Equity Gross Minority Interest	26,934,000	26,605,000
Minority Interest	3,064,000	2,880,000
Stockholders Equity	23,870,000	23,725,000
Gains Losses Not Affecting Retained Earnings	-712,000	-469,000
Other Equity Adjustments	-712,000	-469,000
Treasury Stock	31,290,000	30,753,000
Retained Earnings	48,863,000	47,959,000
Additional Paid In Capital	7,002,000	6,981,000
Capital Stock	7,000	7,000
Common Stock	7,000	7,000
Total Liabilities Net Minority Interest	35,208,000	31,383,000
Total Non Current Liabilities Net Minority Interest	17,556,000	17,274,000
Other Non Current Liabilities	2,366,000	441,000
Employee Benefits		423,000	423,000
Non Current Pension And Other Postretirement Benefit Plans		423,000	423,000
Non Current Accrued Expenses		304,000	292,000
Non Current Deferred Liabilities	4,725,000	5,146,000
Non Current Deferred Taxes Liabilities	4,725,000	5,146,000
Long Term Debt And Capital Lease Obligation	10,465,000	10,335,000
Long Term Capital Lease Obligation		665,000	699,000
Long Term Debt	10,465,000	9,670,000
Long Term Provisions		625,000	297,000
Current Liabilities	17,652,000	14,109,000
Current Deferred Liabilities		60,000	82,000
Current Deferred Revenue		60,000	82,000
Current Debt And Capital Lease Obligation	1,026,000	1,368,000
Current Capital Lease Obligation		419,000	378,000
Current Debt	1,026,000	949,000
Other Current Borrowings		949,000	743,000
Pensionand Other Post Retirement Benefit Plans Current		49,000	73,000
Current Provisions		32,000	47,000
Payables And Accrued Expenses	16,626,000	12,600,000
Current Accrued Expenses	1,313,000	843,000
Interest Payable		76,000	68,000
Payables	15,313,000	11,757,000
Total Tax Payable	1,910,000	1,618,000
Income Tax Payable	484,000	68,000
Accounts Payable	13,403,000	10,139,000
Total Assets	62,142,000	57,988,000
Total Non Current Assets	34,317,000	34,778,000
Other Non Current Assets	7,204,000	976,000
Defined Pension Benefit		948,000	724,000
Non Current Deferred Assets		2,751,000	2,689,000
Non Current Accounts Receivable		347,000	317,000
Investments And Advances		684,000	695,000
Long Term Equity Investment		684,000	695,000
Investmentsin Joint Venturesat Cost		684,000	695,000
Goodwill And Other Intangible Assets		383,000	411,000
Other Intangible Assets		123,000	151,000
Goodwill		260,000	260,000
Net PPE	27,113,000	28,689,000
Accumulated Depreciation	-22,899,000	-22,474,000
Gross PPE	50,012,000	51,163,000
Construction In Progress		617,000	604,000
Other Properties		7,552,000	7,497,000
Machinery Furniture Equipment		41,403,000	43,718,000
Buildings And Improvements		1,082,000	1,147,000
Land And Improvements		509,000	500,000
Current Assets	27,825,000	23,210,000
Other Current Assets	1,126,000	1,054,000
Inventory	7,556,000	7,591,000
Finished Goods	4,317,000	4,182,000
Raw Materials	3,239,000	3,409,000
Receivables	13,410,000	9,877,000
Other Receivables		434,000	705,000
Taxes Receivable		236,000	272,000
Accounts Receivable	13,410,000	9,207,000
Allowance For Doubtful Accounts Receivable		-19,000	-20,000
Gross Accounts Receivable		9,226,000	9,751,000
Cash Cash Equivalents And Short Term Investments	5,733,000	4,688,000
Cash And Cash Equivalents	5,733,000	4,688,000

Cash Flow

	2026	2025	2024
Free Cash Flow	1,225,000	1,837,000
Repurchase Of Capital Stock	-573,000	-1,064,000
Repayment Of Debt	-2,175,000	-1,755,000
Issuance Of Debt	3,050,000	1,575,000
Capital Expenditure	-165,000	-220,000
Interest Paid Supplemental Data	96,000	171,000
Income Tax Paid Supplemental Data	63,000	301,000
End Cash Position	5,912,000	4,865,000
Beginning Cash Position	4,865,000	4,941,000
Effect Of Exchange Rate Changes	-67,000	38,000
Changes In Cash	1,114,000	-114,000
Financing Cash Flow	124,000	-1,752,000
Cash Flow From Continuing Financing Activities	124,000	-1,752,000
Net Other Financing Charges	181,000	-164,000
Cash Dividends Paid	-359,000	-344,000
Common Stock Dividend Paid	-359,000	-344,000
Net Common Stock Issuance	-573,000	-1,064,000
Common Stock Payments	-573,000	-1,064,000
Net Issuance Payments Of Debt	875,000	-180,000
Net Long Term Debt Issuance	875,000	-180,000
Long Term Debt Payments	-2,175,000	-1,755,000
Long Term Debt Issuance	3,050,000	1,575,000
Investing Cash Flow	-400,000	-419,000
Cash Flow From Continuing Investing Activities	-400,000	-419,000
Net Other Investing Changes	-235,000	-194,000
Net Investment Purchase And Sale		-3,000	-10,000
Sale Of Investment		6,000	2,000
Purchase Of Investment		-9,000	-12,000
Net Business Purchase And Sale	0	-2,000
Purchase Of Business	0	-2,000
Capital Expenditure Reported	-165,000	-220,000
Operating Cash Flow	1,390,000	2,057,000
Cash Flow From Continuing Operating Activities	1,390,000	2,057,000
Change In Working Capital	-426,000	-7,000
Change In Other Working Capital	-41,000	478,000
Change In Other Current Liabilities	-82,000
Change In Payables And Accrued Expense	3,491,000	-736,000
Change In Accrued Expense	-102,000	-27,000
Change In Payable	3,593,000	-709,000
Change In Account Payable	3,310,000	-578,000
Change In Tax Payable	283,000	-131,000
Change In Income Tax Payable	283,000	-131,000
Change In Prepaid Assets	-71,000	48,000
Change In Inventory	-16,000	-167,000
Change In Receivables	-3,707,000	506,000
Other Non Cash Items	51,000
Asset Impairment Charge	0	0
Deferred Tax	-397,000	91,000
Deferred Income Tax	-397,000	91,000
Depreciation Amortization Depletion	840,000	817,000
Depreciation And Amortization	840,000	817,000
Net Income From Continuing Operations	1,322,000	1,169,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $30.3B ▲ $32.4B +7.0%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 1.6% ▲ 6.3% +4.7pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 5.7% ▲ 5.3% -0.4pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: -2.0% ▲ 3.9% +5.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$32.4B/qtr (≈$129.5B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.58x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$1.2B

vs Positive

Operating Cash Flow

$1.4B

Latest quarter · Buffett's cash reality check

ROIC

3.1%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

2.6x

Net Assets: $26.9B

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

0.41%

Low — management has little skin in the game

Return on Equity (ROE)

5.3%

Weak — poor returns on equity

Return on Assets (ROA)

2.0%

Fair — average asset utilization

Share Buybacks (Latest Year)

$2.6B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-1.8% YoY

Debt is declining — management is deleveraging

Leadership Team

Lane Riggs

CEO, President & Chairman

Age 59

Pay: $7,628,070

0.604% of net income

Gary Simmons

Executive VP & COO

Age 60

Pay: $3,321,726

0.263% of net income

Eric Fisher

Senior Vice President of Product Supply, Trading & Wholesale

Age 56

Pay: $2,137,288

0.169% of net income

Harminder Bhullar

Senior VP & CFO

Age 44

Brian Donovan

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	8.76%	26,012,463
Vanguard Capital Management LLC	6.61%	19,625,291
State Street Corporation	6.61%	19,615,002
Vanguard Portfolio Management LLC	5.01%	14,878,748
FMR, LLC	2.82%	8,369,765
Geode Capital Management, LLC	2.79%	8,288,812
Price (T.Rowe) Associates Inc	2.74%	8,133,468
Morgan Stanley	2.44%	7,256,704

Risk Analysis

Beta (Market Risk)

0.55

Low volatility — more stable than the market

Short Interest

3.6% 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: $130.78 Current: $236.30 High: $265.61

Currently at 78% of 52-week range

Valero Energy Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis