Valero Energy CorporationVLO
NYSE•Energy•Oil & Gas Refining & Marketing
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.
Valero Energy Corporation (VLO) reported trailing twelve months revenue of $124.81B as of March 2026, a 2.8% decline year-over-year. Quarterly revenue reached $32.38B, reflecting a contraction in sales.
Valero Energy Corporation generated $4.21B in TTM net income, with quarterly EBITDA of $1.74B. The operating margin expanded from -3.0% to 5.3%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (5.3%) and net margin (3.9%) indicates tight cost control with minimal non-operating drag. Net margin has improved from -2.0% a year ago, signaling stronger bottom-line efficiency.
VLO trades at a P/E of 17.7x (in line with broad market averages) and a P/S of 0.6x. The price-to-book ratio of 3.1x reflects a moderate premium to book value.
The company generated $1.23B in free cash flow over the trailing twelve months, a 319.8% increase year-over-year, indicating cash generation ability. The balance sheet shows $62.14B in total assets with $10.46B in long-term debt against $23.87B in stockholders equity for a debt-to-equity ratio of 0.4, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 2.7%. The business may lack pricing power or face rising costs.'
ROE is positive at ~11.3% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF covers net income by 1.1x on average — earnings are well-supported by cash generation.
D/E ratio is 0.4 — conservative capital structure with low financial risk.
Revenue declined in 6 of the last 7 quarters — persistent contraction signals a fundamental problem.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 8.0% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation