Valero Energy Stock Analysis, Valuation (NYSE:VLO)

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$106.3 $1.04 (0.97%) VLO stock closing price Jul 16, 2018 (Closing)

Investors can watch the Amigobulls Valero Energy stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for VLO stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Valero Energy Corporation Stock Rating 3.2/5

Amigobulls VLO stock analysis takes into account various financial ratios like relative valuation, Valero Energy revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Valero Energy dividend performance. We compare Valero Energy valuation with its sector peers to gauge relative attractiveness of VLO stock. Valero Energy stock rating is our opinion about the business fundamentals of the company.

Should you buy VLO stock?

  • The lower PS ratio 0.5 for VLO stock versus Oils-Energy sector average of 1.8 is a positive for the company.
  • Valero Energy generates a high return on invested capital of 9.1.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Valero Energy at 19.5.

Should you sell VLO stock?

  • The company saw an average annual sales decline of -6.4 in sales over the last 5 years.
  • Cash flow from operations is 0.2942 times net income which is a negative signal.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -0.9.

Comments on this video and Valero Energy stock

Investors can make use of the Amigobulls Valero Energy stock analysis to ascertain how VLO stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of VLO stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Valero Energy revenue growth and profit or net income are two main metrics which help in identifying whether VLO stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about VLO stock.