Valero Energy Co. Receives Bullish Analyst Ratings with $154.86 Average Price Target
October 27, 2023
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Valero Energy ($NYSE:VLO) Co. (VLO) has recently gained a bullish analyst rating, with brokerages setting an average price target of $154.86. Valero is an energy company based in San Antonio, Texas, that specializes in the refining of petroleum. Valero also has renewable fuel production, ethanol plants, renewable diesel plants, and convenience stores. In addition to its refining operations, Valero is a major producer of petroleum products including gasoline, jet fuel, and diesel fuel.
Valero’s strong market position and efficient refining operations have earned it a reputation as one of the top players in the energy industry. With its bullish outlook from analysts, Valero Energy Co. may be a compelling investment opportunity for those looking to capitalize on its potential growth.
Share Price
On Monday, Valero Energy Co. (VALERO ENERGY) stock opened at $131.2 and closed at $130.7, down by 0.3% from previous closing price of 131.2. This indicates that there is a strong possibility of the stock reaching its price target in the coming days. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Valero Energy. More…
| Total Revenues | Net Income | Net Margin |
| 157.15k | 10.92k | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Valero Energy. More…
| Operations | Investing | Financing |
| 15.16k | -2.81k | -8.85k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Valero Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 60.18k | 33.11k | 71.51 |
Key Ratios Snapshot
Some of the financial key ratios for Valero Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.5% | 91.2% | 9.7% |
| FCF Margin | ROE | ROA |
| 8.7% | 37.6% | 15.9% |
Analysis
GoodWhale has conducted an analysis of VALERO ENERGY‘s fundamentals and found that, according to its Star Chart, it has excellent health with a 9/10 score. This suggests that the company is strong in terms of cashflows and debt and capable of sustaining future operations even in times of crisis. In terms of other fundamentals such as dividend, growth and asset, VALERO ENERGY is strong in dividend and growth, and medium in asset and profitability. Based on this, we classify the company as a ‘cheetah’ – a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Overall, VALERO ENERGY presents an attractive investment opportunity for investors looking for high revenue or earnings growth. It also may appeal to those searching for a reliable income stream given its strong dividend payments. More…
Peers
Valero Energy Corp is one of the largest refiners and marketers of petroleum products in the United States. Its competitors include Marathon Petroleum Corp, Phillips 66, Delek US Holdings Inc.
– Marathon Petroleum Corp ($NYSE:MPC)
As of 2022, Marathon Petroleum Corporation has a market capitalization of 54.29 billion dollars and a return on equity of 32.4%. The company is engaged in the refining, marketing, and transportation of petroleum products and crude oil, as well as the production and marketing of natural gas and natural gas liquids. Marathon Petroleum is the largest refiner in the United States, with operations in 19 states and the District of Columbia. The company also has a significant presence in Canada, Europe, and Asia.
– Phillips 66 ($NYSE:PSX)
Phillips 66 has a market cap of $47.12 billion as of 2022 and a return on equity of 20.59%. The company is an energy manufacturing and logistics company with operations in the United States, Europe, and Asia. Phillips 66 is engaged in the refining, marketing, and transportation of crude oil, petroleum products, and natural gas. The company also has a chemicals business.
– Delek US Holdings Inc ($NYSE:DK)
Delek US Holdings Inc is a diversified downstream energy company with operations in refining, logistics, and retail. The company owns and operates four refineries with a combined capacity of approximately 620,000 barrels per day in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana. It also owns and operates a fleet of approximately 4,000 railcars and a network of approximately 30 crude oil and refined product truck terminals. The company’s retail segment consists of approximately 350 company-operated convenience stores and fuel centers.
Summary
Valero Energy Co. is an American multinational petroleum refining and marketing company with a presence in the United States, Canada, the Caribbean, the United Kingdom, and Ireland. Recent investment analysis by brokerages suggests that Valero is a sound investment opportunity with an average price target of $154.86. Valero’s stock has strong prospects for growth with analysts noting its industry-leading scale and resilience to market fluctuations. Additionally, Valero’s strong balance sheet and commitment to large investments in its refinery network make it an attractive option for investors looking for long-term growth.
