Valero Energy Corporation (VLO) - Company Profile - 2026-07-16

Company Overview

Valero Energy Corporation is a petroleum refining and renewable fuels company headquartered in San Antonio, Texas. Founded in 1980 and incorporated under its current name in 1997, the company operates as an integrated refiner with expanding renewable energy capabilities. Valero serves markets across the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and other international regions. The company employs approximately 9,785 people and operates through three primary business segments: Refining, Renewable Diesel, and Ethanol.

Business and Operations

Valero operates three distinct business segments. The Refining segment manufactures and markets conventional transportation fuels, including California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB), Conventional Blendstock for Oxygenate Blending (CBOB), CARB diesel, conventional diesel, jet fuel, heating oil, and asphalt. The company also produces aromatics, sulfur, residual fuel oil, and feedstocks. Refined products are distributed through wholesale rack and bulk channels, as well as through branded retail outlets under Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco banners.

The Renewable Diesel segment manufactures and sells low-carbon transportation fuels, including renewable diesel, renewable naphtha, and neat sustainable aviation fuel under the Diamond Green Diesel brand. This segment reflects expansion into lower-carbon fuel production.

The Ethanol segment produces ethanol and co-products including dry distillers grains, syrup, and inedible distillers corn oil, marketed to animal feed customers.

Fundamental Metrics

Valero trades at a market capitalization of $86.90 billion with an enterprise value of $95.72 billion. The company reported trailing twelve-month revenue of $117.84 billion with year-over-year revenue growth of 6.60%. Operating margin stands at 6.05%, while net profit margin is 3.57%.

Key profitability metrics include return on equity of 15.85% and return on assets of 6.49%. The trailing price-to-earnings ratio is 21.36, while the forward P/E ratio is 13.22. Price-to-book ratio is 3.64, and price-to-sales ratio is 0.74. Free cash flow for the trailing twelve-month period totaled $4.79 billion.

The company maintains a debt-to-equity ratio of 42.66 and a current ratio of 1.58. The dividend yield is 164.00%, with a payout ratio of 33.53%.

Share Structure and Ownership

Valero has approximately 296.9 million shares outstanding with 295.4 million shares in the float. Insider holdings represent 0.41% of shares, while institutional investors hold 87.92% of outstanding equity.

The company's five largest institutional shareholders are Blackrock Inc. (8.76%), Vanguard Capital Management LLC (6.61%), State Street Corporation (6.61%), Vanguard Portfolio Management LLC (5.01%), and FMR, LLC (2.82%).

Short interest represents 4.04% of the float, with a short ratio of 3.13 days to cover.

Trading Activity

The 30-day average daily trading volume is approximately 3.17 million shares, while the 90-day average volume is 3.49 million shares. Beta is 0.55, indicating lower volatility relative to the broader market.

Recent Price Action

Valero closed at $292.66 per share on July 15, 2026. Over the past month, the stock gained 13.14%. The three-month change shows a 22.54% increase, while year-to-date performance reflects a 77.04% gain. Over the past twelve months, the stock appreciated 104.39%.

The 52-week range extends from a low of $130.78 to a high of $301.43. The current price sits 2.91% below the 52-week high.

Strengths

• Integrated refining infrastructure with multiple U.S. and international operating locations
• Diversified fuel product portfolio spanning conventional transportation fuels, renewable diesel, sustainable aviation fuel, and ethanol
• Strong free cash flow generation of $4.79 billion on a trailing twelve-month basis
• Return on equity of 15.85% and return on assets of 6.49%
• Institutional investor base of 87.92%, with participation from major diversified asset managers
• Equity beta of 0.55, reflecting lower price sensitivity relative to broader market movements
• Twelve-month price appreciation of 104.39% and year-to-date appreciation of 77.04%

Considerations

• Dividend yield of 164.00% is elevated and warrants examination of underlying payout structure and sustainability
• Debt-to-equity ratio of 42.66 represents significant financial leverage
• Forward P/E of 13.22 differs materially from trailing P/E of 21.36, potentially indicating market expectations of earnings changes
• Operating margins of 6.05% are modest relative to less capital-intensive industries
• Net profit margin of 3.57% reflects competitive dynamics typical of commodity fuel markets
• Current ratio of 1.58 indicates moderate liquidity relative to short-term obligations
• Refining operations are cyclical, subject to crude oil pricing, regulatory change, and demand fluctuations
• Recent substantial appreciation may result in price volatility and continued investor attention

Summary

Valero Energy Corporation operates as an integrated petroleum refiner with growing renewable fuel production across three business segments. The company generated $117.84 billion in trailing twelve-month revenue with free cash flow of $4.79 billion, supported by profitability metrics including 15.85% ROE and 6.05% operating margin. The stock has appreciated 104.39% over the past twelve months and 77.04% year-to-date, currently trading 2.91% below its 52-week high of $301.43.