Does Valero Energy Stock Lead the Pack?
Valero Energy’s stock has outperformed peers over the past year, but how does it truly measure up in a dynamic energy market? A closer look reveals a higher P/E ratio and declining LTM revenue, common across refiners, yet solid profitability and free cash flow generation. The valuation appears stretched given sector trends, limiting upside against more diversified energy opportunities.
- VLO’s 2.5% operating margin trails NFE’s 11.9%, reflecting refining’s volatility versus NFE’s stable, contracted LNG infrastructure model.
- VLO’s -8.5% LTM revenue growth trails MPC, suggesting stronger diversified assets; outpacing PSX, NFE reflects varied market impacts.
- VLO’s 33.0% gain, outpacing peers, with a 38.3 PE, reflects investor optimism for future refining margins or renewable fuel growth.
Here’s how Valero Energy stacks up across size, valuation, and profitability versus key peers.
| VLO | MPC | PSX | NFE | |
|---|---|---|---|---|
| Market Cap ($ Bil) | 57.3 | 60.2 | 56.0 | 0.3 |
| Revenue ($ Bil) | 123.1 | 133.3 | 132.0 | 2.0 |
| PE Ratio | 38.3 | 20.9 | 37.2 | -0.3 |
| LTM Revenue Growth | -8.5% | -6.1% | -10.7% | -15.6% |
| LTM Operating Margin | 2.5% | 3.6% | 1.3% | 11.9% |
| LTM FCF Margin | 3.2% | 3.2% | 1.0% | -93.5% |
| 12M Market Return | 33.0% | 26.3% | 9.4% | -87.3% |
For more details on Valero Energy, read Buy or Sell VLO Stock. Below we compare VLO’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| VLO | -8.5% | -10.3% | -17.9% | 54.8% |
| MPC | -6.1% | -6.4% | -16.4% | 47.9% |
| PSX | -10.7% | -2.9% | -13.3% | 52.5% |
| NFE | -15.6% | -2.0% | 1.9% | 79.0% |
Operating Margin Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| VLO | 2.5% | 2.9% | 8.2% | 8.9% |
| MPC | 3.6% | 3.8% | 8.5% | 10.7% |
| PSX | 1.3% | 1.2% | 5.4% | 5.7% |
| NFE | 11.9% | 27.3% | 38.6% | 34.2% |
PE Ratio Comparison
| LTM | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| VLO | 38.3 | 14.3 | 5.2 | 4.3 |
| MPC | 20.9 | 13.8 | 6.2 | 4.1 |
| PSX | 37.2 | 22.6 | 8.5 | 4.5 |
| NFE | -0.3 | -13.2 | 14.2 | 45.7 |
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