Reading the tape
NYSE: VLO
Valero Energy Corporation
Energy · Oil & Gas Refining & Marketing
Market Cap
$71.58B
52w High
$258.43
52w Low
$125.10
P/E
17.08
Volume
2.76M
Outstanding Shares
296.93M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inModerate confidence
1Y Price: 98.03%Revenue (TTM): -1.72%FCF (TTM): 28.65%P/FCF: 70th pct
What changed
The stock rose 98.03% over the last year. Revenue declined 1.72% over the trailing twelve months. Operating margin moved from 0.92% to 4.61%. Free cash flow grew 28.65% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (70th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 4.61% — continued expansion would be needed to justify the premium. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Valero Energy Corporation manufactures, markets, and sells transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, and internationally.
CEOR. Lane Riggs
SectorEnergy
IndustryOil & Gas Refining & Marketing
Employees9,898
IPO dateJan 4, 1982
Valuation
Forward P/E—
EV/EBITDA8.53
Enterprise value$57.32B
Stock splits
May 2, 2013↑ Forward
Every 500 shares became 547
Dec 16, 2005↑ Forward
Every 1 shares became 2
Oct 8, 2004↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth7.02%
Gross margin7.24%▲19.41%vs FY2024
Operating margin4.61%▲21.57%vs FY2024
ROE9.9%▼12.42%vs FY2024
Analyst consensus
RatingBuy
Target price$214.67▼10.95%
22
Buy
14
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 23, 2026
Q3 FY26 · EPS est $8.94 · Revenue est $36.6B
View
Dividends
$4.66/shareQuarterlyDividend Achiever · 15yrEx-div May 21, 2026 · in 11dSafeVLO pays a dividend with a 1.93% declared yield, 15 consecutive years of growth, growing at 3.52% annually, covered 3.6× by free cash flow.
Declared Yield
1.93%
Annual Div / Share
$4.66
5yr CAGR
+3.52%
Doubles every ~20.0yr
Payout Ratio
33.48%
Safe
Dividend Growth Rate
3yr CAGR
+5.22%
5yr CAGR
+3.52%
10yr CAGR
+8.3%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$4.66+5.9%
2025$4.40+5.3%
2024$4.18+4.5%
2023$4.00+2.0%
2022$3.92+0.0%
2021$3.92+4.3%
2020$3.76+10.6%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$19/yr
$2/mo
In 5 yrs
$23/yr+19%
$2/mo
In 10 yrs
$27/yr+41%
$2/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$19/yr $2/mo | $23/yr+19% $2/mo | $27/yr+41% $2/mo |
Yield-on-cost grows from 1.93% → 2.73% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
VLO has raised its dividend for 15 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 3.6× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Risks to Watch
No strong risk signal stands out from the latest period pair.