Valero Energy Corporation (NYSE: VLO) manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending and Conventional Blendstock for Oxygenate Blending gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils. It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company owns and operates renewable diesel and ethanol plants, as well as produces renewable diesel and naphtha under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distiller grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.
Company Overview
- Market Cap: 47.009 Billion
- PE Ratio: 8.31
- Profit Margin: 4.43%
- Return on Assets: 8.10%
- Return on Equity: 21.82%
- Diluted EPS: 17.65
- Total Debt/Equity: 38.02%
- Dividend Yield: 2.92%
Valero is a refining company that turns crude oil into products like gasoline, propane and asphalt. With lower debt and positive free cash flow at the end of the first quarter, the company could end up buying back more of its stock. It had been increasing dividends and buybacks the last two years, and that trend should continue. During the first quarter, the company returned $1.4 billion to shareholders through dividends and stock buybacks. Therefore, VLO is the best energy stock to own for now as well as for long-term.