Valero Energy Corporation [VLO] is following upward trend in the market concluded with the last trading session. The shares of the Basic Materials sector company has a current value of $88.25 after VLO shares went up by 2.86% during the last trading session. One of the reasons why Basic Materials stocks may go bullish is increased momentum in the press.

Valero Energy Corporation [NYSE:VLO]: Analyst Rating and Earnings

Its stock price has been found in the range of 68.81 to 111.38. This is compared to its latest closing price of $85.80.

Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Thu 24 Oct (In 13 Days).

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Fundamental Analysis of Valero Energy Corporation [VLO]

Now let’s turn to look at profitability: with a current Operating Margin for Valero Energy Corporation [VLO] sitting at +3.99 and its Gross Margin at +4.82, this company’s Net Margin is now 2.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 14.70, and its Return on Invested Capital has reached 11.90%. Its Return on Equity is 14.26, and its Return on Assets is 6.14. These metrics suggest that this Valero Energy Corporation does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Valero Energy Corporation [VLO] has generated a Total Debt to Total Equity ratio of 42.04. Similarly, its Total Debt to Total Capital is 29.60, while its Total Debt to Total Assets stands at 17.97. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 8.39, and its Long-Term Debt to Total Capital is 40.94.

What about valuation? This company’s Enterprise Value to EBITDA is 6.10 and its Total Debt to EBITDA Value is 1.35. The Enterprise Value to Sales for this firm is now 0.36, and its Total Debt to Enterprise Value stands at 0.23. Valero Energy Corporation [VLO] has a Price to Book Ratio of 1.44, a Price to Cash Flow Ratio of 7.34 and P/E Ratio of 14.55. These metrics all suggest that Valero Energy Corporation is more likely to generate a positive ROI.

Shifting the focus to workforce efficiency, Valero Energy Corporation [VLO] earns $11,405,613 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 16.41 and its Total Asset Turnover is 2.31. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.04 and its Current Ratio is 1.65. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Valero Energy Corporation [VLO] has 415.00M shares outstanding, amounting to a total market cap of $35.61B. Its stock price has been found in the range of 68.81 to 111.38. At its current price, it has moved down by -20.76% from its 52-week high, and it has moved up 28.26% from its 52-week low.

This stock’s Beta value is currently 1.46, which indicates that it is 1.95% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 67.05. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Valero Energy Corporation [VLO] a Reliable Buy?

Shares of Valero Energy Corporation [VLO], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.