VLOValero Energy
Is the business good?
The checks split: earnings fully cash-backed (1.4×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 16% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VLO?
Valero Energy earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 7.2%
Operating margin · Oil & Gas Refining & Marketing median 5.8% · 12 months to Q2 2026
- Cash conversion
- 1.41×
Cash conversion · 4.91× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −2.4% |
| FY2021 | 1.9% |
| FY2022 | 8.9% |
| FY2023 | 8.2% |
| FY2024 | 2.9% |
| FY2025 | 2.6% |
Details›
- Gross margin12 months to Q2 2026
- 8.0%
- Operating margin12 months to Q2 2026
- 7.2%
- Net margin12 months to Q2 2026
- 5.2%
- Revenue, trailing twelve months
- $139.4B
- Net income, trailing twelve months
- $7.21B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Refining & Marketing
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