Valero Energy Corporation
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Range $203 – $357
Price Chart
About the company
Valero Energy Corporation functions as a global producer and marketer of transportation fuels and petrochemicals, with operations spanning the United States, Canada, the United Kingdom, Ireland, and other international territories. The company organizes its business across three primary divisions: Refining, Renewable Diesel, and Ethanol. Its Refining segment generates a wide array of products, including various types of gasoline (conventional, premium, reformulated, and California Air Resources Board-compliant), diverse diesel fuels (low-sulfur, ultra-low-sulfur, and CARB diesel), jet fuels, blendstocks, asphalts, petrochemicals, and lubricants.
- CEO
- R. Lane Riggs
- IPO
- 1982
- Employees
- 9,785
- HQ
- San Antonio, TX, US
AI snapshot
Six angles, distilled from the data.
The stock is in a powerful multi-month uptrend and trading at the top of its 52-week range. It sits well above the 200-day average, which points to a strong bullish regime rather than a mean-reversion setup.
Street sentiment stays constructive, with a Buy consensus and a $310.2 average target versus a much higher market price. Recent calls have mostly been reaffirmed or raised, including multiple target hikes into the $323-$357 range, which shows estimates are chasing the move rather than fading it.
The earnings pattern is excellent: VLO has beaten EPS in all 8 of the last 8 quarters, often by wide margins. Next-year EPS is modeled at 27.7159 versus 24.44 TTM, so shareholders should watch whether refining margins and volume keep supporting another step up.
Recent insider activity leans negative on discretionary signal, with three open-market sales by SVP Eric A. Fisher and no open-market buys. The director awards, exempt transfers, and return-related filings are routine compensation or administrative noise, not a bullish ownership signal.
Profitability is strong, with ROE at 27.64% and operating margin at 12.27%, while revenue growth ran 51.7% year over year. Cash generation is solid too, with $6.622 billion in free cash flow and $23.00 per share, but the balance sheet carries $11.703 billion of debt against $4.688 billion of cash.
Valero screens as a high-quality refiner with better profitability than many cyclical peers, supported by a 16.1% gross margin and strong cash conversion. The valuation is not cheap, with 24.53x earnings and a market price above the $310.2 consensus target, so the setup favors execution over multiple expansion.
Similar companies
Peers in the same neighborhood.
- Market Cap
- $98.99B
- P/E
- 14.25
- Fwd P/E
- 8.24
- PEG
- 0.02
- P/S
- 0.74
- P/B
- 4.04
- EV/EBITDA
- 7.73
- Div Yield
- 1.37%
- Gross Margin
- 11.33%
- Op Margin
- 7.53%
- Net Margin
- 5.43%
- ROE
- 29.94%
- ROIC
- 16.52%
Latest fiscal year · YoY change
- Revenue
- $122.69B-5.5%
- Gross Profit
- $5.37B+12.8%
- Op Income
- $4.31B
- Net Income
- $2.35B-15.2%
- EPS
- $7.57-11.8%
- OCF Growth
- -12.8%
- FCF Growth
- -12.9%
- 52W High
- $352.70
- 52W Low
- $137.88
- 50D MA
- $289.53
- 200D MA
- $228.93
- Beta
- 0.55
- RSI (14)
- 70
- Avg Volume
- 2.92M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Valero reported an exceptionally strong second quarter, with refining, renewable diesel, and ethanol all contributing to materially higher earnings and management sounding constructive on near-term margins and cash generation.· July 30, 2026
- Net income attributable to Valero was $3.7 billion, or $12.62 per share, versus $714 million, or $2.28 per share, a year ago.
- Refining operating income surged to $4.5 billion; renewable diesel swung to $717 million of operating income and ethanol rose to $318 million.
- The company generated $5.6 billion of operating cash flow, ended with $7.9 billion of cash and cash equivalents, and kept net debt very low with a net debt-to-capitalization ratio of 11%.
- Management expects third-quarter refining margins and capture rates to improve versus Q2, helped by feedstock costs, stronger gasoline and diesel markets, and resilient product demand.
- Valero kept shareholder returns flowing with $2.6 billion returned in the quarter and declared a $1.20 per share quarterly dividend.
Valero reported second-quarter 2026 net income attributable to stockholders of $3.7 billion, or $12.62 per share, compared with $714 million, or $2.28 per share, in the second quarter of 2025. Excluding adjustments, adjusted net income was also $3.7 billion, or $12.54 per share. Refining operating income was $4.5 billion versus $1.3 billion a year ago; Renewable Diesel operating income was $717 million versus an operating loss of $79 million; and Ethanol operating income was $318 million versus $54 million. Refining throughput averaged 3 million barrels per day, refining cash operating expenses were $4.70 per barrel, and the company produced $5.6 billion of operating cash flow. For the third quarter, Valero expects refining throughput of 1.78 million-1.83 million barrels per day in the Gulf Coast, 460,000-480,000 in the Mid-Continent, 110,000-120,000 in the West Coast, and 450,000-470,000 in the North Atlantic; refining cash operating expenses should be about $4.75 per barrel, renewable diesel sales about 3.5 million gallons per day, ethanol production about 4.8 million gallons per day, net interest expense about $140 million, and D&A about $700 million. Full-year 2026 capital investments attributable to Valero are expected to be approximately $2 billion, and G&A is expected to be approximately $960 million.
Lane Riggs framed the quarter as strong across all three segments, emphasizing exceptional operational and commercial execution amid volatile geopolitical and macro conditions. He highlighted the company’s strong balance sheet, recent $1.20 per share dividend declaration, and the planned $230 million FCC optimization project at St. Charles, which is expected to boost higher-value products in the third quarter. His tone was confident and disciplined: constructive on the market, but still focused on capital allocation discipline and asset optimization rather than aggressive expansion.
Harminder Bhullar detailed the quarter’s financial strength, noting $3.7 billion of net income, $5.6 billion of operating cash flow, and $2.6 billion of stockholder cash returns for a 59% payout ratio. He said Valero ended with $7.9 billion of cash and cash equivalents, $9.1 billion of total debt, $2.2 billion of finance lease obligations, and an 11% debt-to-capitalization ratio net of cash, while building $2.1 billion of cash during the quarter. He also reiterated full-year 2026 capital investments of about $2 billion, with roughly $1.7 billion for sustaining the business, and said the company is preserving optionality by keeping cash above its long-term $4 billion to $5 billion target.
Analysts focused on the jump from Q2 to Q3, and management said third-quarter refining margins and capture rates look constructive relative to Q2, with feedstock costs improving and jet, gasoline, and export markets helping. Questions also centered on cash deployment, and Bhullar said Valero can build cash and return capital at the same time, while still favoring buybacks over merely holding excess cash if no better uses emerge. On renewables, Eric Fisher said the D4 RIN and RVO backdrop supports renewable diesel through 2026-2027 and that ethanol is benefiting from both gasoline/octane strength and the production tax credit, while also noting that Valero does not plan major RD expansion given policy uncertainty.
The call pointed to strong near-term market conditions: management said margins and capture rates are improving into Q3, feedstock costs are favorable, and gasoline, diesel, jet, and export markets remain supportive. Valero also sees structural tailwinds in renewable diesel and ethanol, with management calling the RIN market short and saying ethanol is benefiting from the production tax credit and higher gasoline/octane values.
Management acknowledged ongoing volatility in commodity prices and said it is deliberately holding more cash because a rapid pullback in crude could pressure working capital. They also flagged policy uncertainty in renewables, including the risk that the RIN bank could run out and that future EPA action may depend on consumer affordability, while noting no intention to expand renewable diesel materially. On the refining side, they said future returns still depend on sustained tight global capacity, geopolitical disruptions, and high crack spreads, which may not persist at current levels.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 99.6%
- Shares Outstanding
- 287.93M
- Float Shares
- 286.77M
of shares held by institutions
1,936 13F filers
Buy/sell ratio 0.94. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for VLO, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| Gilbert CisnerosHouse · CA31 | Sell | Jan 9, 26 | Filing → |
| Gilbert CisnerosHouse · CA31 | Sell | Aug 6, 25 | Filing → |
| John BoozmanSenate · AR | Sell | May 13, 25 | Filing → |
| John BoozmanSenate · AR | Sell | May 13, 25 | Filing → |
| Markwayne MullinSenate · OK | Buy | May 13, 25 | Filing → |
| Markwayne MullinSenate · OK | Buy | May 13, 25 | Filing → |
| Rob BresnahanHouse · PA08 | Buy | May 15, 25 | Filing → |
| Markwayne MullinSenate · OK | Sell | Apr 8, 25 | Filing → |
| Markwayne MullinSenate · OK | Sell | Apr 8, 25 | Filing → |
| Rob BresnahanHouse · PA08 | Sell | Apr 8, 25 | Filing → |
| John JamesHouse · MI10 | Sell | Sep 4, 24 | Filing → |
| John JamesHouse · MI10 | Buy | Nov 10, 23 | Filing → |
| Thomas R. CarperSenate · DE | Sell | Apr 11, 24 | Filing → |
| Michael C. BurgessHouse · TX26 | Sell | Jan 12, 24 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Vanguard Group Inc | 37.65M | ▼ 418.29K |
| Blackrock, Inc. | 25.14M | ▼ 869.24K |
| Vanguard Capital Management LLC | 19.39M | ▼ 232.03K |
| State Street Corp | 18.90M | ▼ 711.99K |
| Fmr LLC | 8.50M | ▲ 134.62K |
| Morgan Stanley | 8.04M | ▲ 782.63K |
| Geode Capital Management, LLC | 7.27M | ▼ 1.02M |
| Norges Bank | 6.40M | ▲ 6.40M |
| Franklin Resources Inc | 6.33M | ▼ 83.35K |
| Ameriprise Financial Inc | 5.22M | ▼ 1.31M |
| Bank Of America Corp | 4.59M | ▼ 441.30K |
| Price T Rowe Associates Inc | 3.92M | ▼ 4.21M |
Held by 1,619 ETFs
Biggest fund positions in VLO by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jun 29, 26 | Fisher Eric A | sell | 7,500 |
| Jun 18, 26 | Fisher Eric A | sell | 7,500 |
| May 18, 26 | Fisher Eric A | sell | 7,500 |
| May 7, 26 | WILKINS RAYFORD JR | other | 939 |
| May 7, 26 | WEISENBURGER RANDALL J | other | 939 |
| May 7, 26 | Mullins Eric D. | other | 939 |
| May 7, 26 | Majoras Deborah P | other | 939 |
| May 7, 26 | Diaz Fred M | other | 939 |
| May 7, 26 | Greene Kimberly S, | other | 939 |
| May 7, 26 | Ffolkes Marie A | other | 939 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our VLO coverage
Recent articles, reports, and earnings notes.

Valero Energy (VLO): Refining Cash Flow and Valuation
Valero posted a sharp Q1 2026 rebound in refining income and continues to generate strong free cash flow, but the stock still screens as fairly valued near the current price. The report keeps VLO at Hold as cyclicality and valuation offset the operating recovery.

Oil Refiners Stocks That Beat Estimates: 7 Picks for August 2026
Seven oil refiners ranked by investment quality, with margin strength, diversification, and earnings consistency shaping the August 2026 countdown.

Valero Energy Corporation (VLO) gains on deep earnings analysis
Valero Energy Corporation (VLO) gains after a detailed earnings review shows a major EPS and revenue beat, led by surging refining profits and stronger renewable diesel and ethanol results. The analysis also weighs cash flow, capital plans, and management’s outlook for product inventories and refining margins.
Want a deeper read on VLO?
Generate a full analyst-grade report — bull/bear case, price targets, valuation depth, and a complete financial breakdown.
Bell & Brown Wealth Advisors LLC Sells 1,706 Shares of Valero Energy Corporation $VLO
defenseworld.net · Aug 20
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Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.
AI analysis · Last refreshed August 14, 2026 · Live quote · Not investment advice