Recent News
On July 23, 2025, California authorities moved to identify a buyer to avoid closure of Valero’s Benicia refinery. In late September 2025 the company recorded a $1.1 billion pre-tax impairment tied to its California refining assets and confirmed evaluation of strategic alternatives for Benicia and Wilmington, including potential idling or restructuring; the charge includes $337 million for expected asset retirement obligations.
Technical Analysis
ADX & Directional Indicators: ADX at 44.78 signals a very strong underlying trend. DI+ sits at 35.34 but shows a peak-and-reversal (DI+ decreasing), and DI- at 12.91 shows a dip-and-reversal (DI- increasing); together these directional shifts create a bearish directional bias despite strong trend strength, which raises the risk of a downside correction against the company’s broader valuation backdrop.
MACD: MACD reads 6.03 with the MACD line above the signal line at 5.89, producing a short-term bullish crossover signal. The MACD trend shows a peak-and-reversal, however, which constitutes bearish momentum; the immediate interpretation therefore becomes conflicted—momentum has begun to falter even while the MACD line remains marginally above its signal.
MRO (Momentum/Regression Oscillator): MRO at 15.58 sits positive, indicating price currently trades above the target implied by regression; that condition typically precedes downward pressure as price reverts toward the modeled level, supporting the case for mean reversion against recent gains.
RSI and Moving Averages: RSI at 65.95 with a peak-and-reversal trend points toward a fading buy-side momentum. Price at $167.67 stays above the 50-day average ($150.16) and the 200-day average ($133.38), indicating medium- and long-term strength, while the 12-day EMA at $167.82 shows a peak-and-reversal—short-term momentum now tilting lower. The super trend lower support sits at $166.76, narrowly beneath the close, marking a near-term technical support reference.
Volume & Volatility Context: Session volume of ~2.44M trails short- and long-run averages (10-day ~3.52M, 200-day ~3.23M), suggesting recent moves carry lighter participation. Bollinger bands and narrow 20-day volatility indicate compressed dispersion; a momentum-driven breakout in either direction would likely require a pickup in volume to validate follow-through.
Fundamental Analysis
Profitability & Margins: EBIT registers $1,083,000,000 and EBIT margin at 3.62%. That margin sits below the industry peer mean of 17.38%, reflecting lower operating profitability relative to the peer mean. QoQ change in EBIT margin shows a -240.54% move and YoY change shows -6.96%—both signal material margin compression over recent periods.
Earnings and Cash Flow: Reported EPS of $2.28 beat the estimate of $1.77 by $0.51, a positive EPS surprise of 28.8%. Free cash flow totaled $786,000,000 and free cash flow yield stands at 1.82%, above the industry peer mean of 1.25%, indicating stronger cash conversion relative to the peer mean despite pressure on margins.
Leverage and Coverage: Debt-to-equity at 44.22% falls below the industry peer mean of 72.92%, and net debt sits at $6.11B; interest coverage near 7.68x supports adequate servicing ability. Lower relative leverage provides financial flexibility amid capital decisions tied to refinery assets in California.
Returns and Efficiency: Return on equity registers 2.97%, slightly above the industry peer mean of 2.85%, while return on assets at 1.20% aligns with a low-return refining environment. Asset turnover at 0.504 sits above the industry peer mean of 0.148, signaling efficient asset use versus peers.
Valuation: Price-to-earnings stands at 59.7x versus an industry peer mean of 51.9x, and price-to-book at 1.79 exceeds the peer mean of 1.55. WMDST values the stock as fair-valued, reflecting the balance between stretched multiple and still-strong cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-24 |
| NEXT REPORT DATE: | 2025-10-23 |
| CASH FLOW | Begin Period Cash Flow | $ 4.8 B |
| Operating Cash Flow | $ 936.0 M | |
| Capital Expenditures | $ -150.00 M | |
| Change In Working Capital | $ -606.00 M | |
| Dividends Paid | $ -354.00 M | |
| Cash Flow Delta | $ -95.00 M | |
| End Period Cash Flow | $ 4.7 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 29.9 B | |
| Forward Revenue | $ 7.8 B | |
| COSTS | ||
| Cost Of Revenue | $ 28.7 B | |
| Depreciation | $ 814.0 M | |
| Depreciation and Amortization | $ 814.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 28.9 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.2 B | |
| EBITDA | $ 1.9 B | |
| EBIT | $ 1.1 B | |
| Operating Income | $ 997.0 M | |
| Interest Income | — | |
| Interest Expense | $ 141.0 M | |
| Net Interest Income | $ -141.00 M | |
| Income Before Tax | $ 942.0 M | |
| Tax Provision | $ 279.0 M | |
| Tax Rate | 29.618 % | |
| Net Income | $ 714.0 M | |
| Net Income From Continuing Operations | $ 663.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.77 | |
| EPS Actual | $ 2.28 | |
| EPS Difference | $ 0.51 | |
| EPS Surprise | 28.814 % | |
| Forward EPS | $ 2.41 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 59.4 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 24.1 B | |
| Total Current Assets | $ 23.8 B | |
| Cash and Short-Term Investments | $ 4.5 B | |
| Cash | $ 4.5 B | |
| Net Receivables | $ 11.1 B | |
| Inventory | $ 7.5 B | |
| Long-Term Investments | $ 7.4 B | |
| LIABILITIES | ||
| Accounts Payable | $ 11.5 B | |
| Short-Term Debt | $ 382.0 M | |
| Total Current Liabilities | $ 14.7 B | |
| Net Debt | $ 6.1 B | |
| Total Debt | $ 10.6 B | |
| Total Liabilities | $ 32.5 B | |
| EQUITY | ||
| Total Equity | $ 24.1 B | |
| Retained Earnings | $ 46.4 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 77.51 | |
| Shares Outstanding | 310.654 M | |
| Revenue Per-Share | $ 96.21 | |
| VALUATION | Market Capitalization | $ 43.1 B |
| Enterprise Value | $ 49.2 B | |
| Enterprise Multiple | 25.931 | |
| Enterprise Multiple QoQ | -105.122 % | |
| Enterprise Multiple YoY | 21.029 % | |
| Enterprise Multiple IPRWA | high: 75.659 mean: 30.417 median: 28.835 VLO: 25.931 low: -7.608 |
|
| EV/R | 1.646 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.468 | |
| Asset To Liability | 1.829 | |
| Debt To Capital | 0.307 | |
| Debt To Assets | 0.179 | |
| Debt To Assets QoQ | -2.333 % | |
| Debt To Assets YoY | 1045.396 % | |
| Debt To Assets IPRWA | high: 0.609 mean: 0.237 median: 0.212 VLO: 0.179 low: 0.002 |
|
| Debt To Equity | 0.442 | |
| Debt To Equity QoQ | -4.302 % | |
| Debt To Equity YoY | 1030.632 % | |
| Debt To Equity IPRWA | high: 1.807 mean: 0.729 median: 0.533 VLO: 0.442 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.789 | |
| Price To Book QoQ | 8.215 % | |
| Price To Book YoY | -5.036 % | |
| Price To Book IPRWA | high: 3.756 VLO: 1.789 median: 1.768 mean: 1.548 low: 0.005 |
|
| Price To Earnings (P/E) | 59.691 | |
| Price To Earnings QoQ | -57.159 % | |
| Price To Earnings YoY | 8.114 % | |
| Price To Earnings IPRWA | high: 185.623 VLO: 59.691 mean: 51.891 median: 48.382 low: -96.671 |
|
| PE/G Ratio | 0.382 | |
| Price To Sales (P/S) | 1.441 | |
| Price To Sales QoQ | 12.293 % | |
| Price To Sales YoY | 3.704 % | |
| Price To Sales IPRWA | high: 30.921 mean: 6.116 median: 5.84 VLO: 1.441 low: 0.012 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 53.445 | |
| Forward PE/G | 0.342 | |
| Forward P/S | 5.493 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 195.854 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.504 | |
| Asset Turnover Ratio QoQ | -0.627 % | |
| Asset Turnover Ratio YoY | -7.802 % | |
| Asset Turnover Ratio IPRWA | VLO: 0.504 high: 0.396 median: 0.165 mean: 0.148 low: 0.002 |
|
| Receivables Turnover | 2.679 | |
| Receivables Turnover Ratio QoQ | -7.161 % | |
| Receivables Turnover Ratio YoY | -1.75 % | |
| Receivables Turnover Ratio IPRWA | high: 6.047 VLO: 2.679 mean: 1.929 median: 1.804 low: 0.322 |
|
| Inventory Turnover | 3.912 | |
| Inventory Turnover Ratio QoQ | -2.21 % | |
| Inventory Turnover Ratio YoY | -5.703 % | |
| Inventory Turnover Ratio IPRWA | high: 23.002 VLO: 3.912 mean: 3.291 median: 2.469 low: 0.051 |
|
| Days Sales Outstanding (DSO) | 34.057 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 20.53 | |
| Cash Conversion Cycle Days QoQ | 15.99 % | |
| Cash Conversion Cycle Days YoY | 24.53 % | |
| Cash Conversion Cycle Days IPRWA | high: 82.233 VLO: 20.53 median: 5.201 mean: 2.056 low: -110.2 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 3.275 | |
| CapEx To Revenue | -0.005 | |
| CapEx To Depreciation | -0.184 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 34.3 B | |
| Net Invested Capital | $ 34.7 B | |
| Invested Capital | $ 34.7 B | |
| Net Tangible Assets | $ 24.1 B | |
| Net Working Capital | $ 9.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.309 | |
| Current Ratio | 1.622 | |
| Current Ratio QoQ | 4.111 % | |
| Current Ratio YoY | 9.567 % | |
| Current Ratio IPRWA | high: 5.453 VLO: 1.622 median: 1.249 mean: 1.193 low: 0.329 |
|
| Quick Ratio | 1.108 | |
| Quick Ratio QoQ | 1.89 % | |
| Quick Ratio YoY | 6.361 % | |
| Quick Ratio IPRWA | high: 3.791 VLO: 1.108 mean: 0.936 median: 0.919 low: 0.247 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.613 | |
| Cost Of Debt | 0.923 % | |
| Interest Coverage Ratio | 7.681 | |
| Interest Coverage Ratio QoQ | -234.907 % | |
| Interest Coverage Ratio YoY | -19.932 % | |
| Interest Coverage Ratio IPRWA | high: 22.447 VLO: 7.681 mean: 6.948 median: 6.558 low: -20.714 |
|
| Operating Cash Flow Ratio | 0.054 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 35.996 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 2.017 | |
| Dividend Payout Ratio | 0.496 | |
| Dividend Rate | $ 1.14 | |
| Dividend Yield | 0.008 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.433 % | |
| Revenue Growth | -1.22 % | |
| Revenue Growth QoQ | -24.645 % | |
| Revenue Growth YoY | -114.188 % | |
| Revenue Growth IPRWA | high: 43.755 % VLO: -1.22 % median: -4.359 % mean: -5.067 % low: -35.032 % |
|
| Earnings Growth | 156.18 % | |
| Earnings Growth QoQ | 299.826 % | |
| Earnings Growth YoY | -637.477 % | |
| Earnings Growth IPRWA | VLO: 156.18 % high: 122.222 % median: -21.739 % mean: -23.683 % low: -180.0 % |
|
| MARGINS | ||
| Gross Margin | 4.085 % | |
| Gross Margin QoQ | 149.237 % | |
| Gross Margin YoY | -1.257 % | |
| Gross Margin IPRWA | high: 82.166 % mean: 25.152 % median: 22.581 % VLO: 4.085 % low: -39.892 % |
|
| EBIT Margin | 3.623 % | |
| EBIT Margin QoQ | -240.535 % | |
| EBIT Margin YoY | -6.959 % | |
| EBIT Margin IPRWA | high: 95.08 % mean: 17.379 % median: 13.652 % VLO: 3.623 % low: -39.515 % |
|
| Return On Sales (ROS) | 3.336 % | |
| Return On Sales QoQ | -229.403 % | |
| Return On Sales YoY | -14.33 % | |
| Return On Sales IPRWA | high: 90.781 % mean: 14.057 % median: 11.212 % VLO: 3.336 % low: -39.515 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 786.0 M | |
| Free Cash Flow Yield | 1.824 % | |
| Free Cash Flow Yield QoQ | 0.773 % | |
| Free Cash Flow Yield YoY | -61.616 % | |
| Free Cash Flow Yield IPRWA | high: 8.634 % VLO: 1.824 % median: 1.276 % mean: 1.254 % low: -11.931 % |
|
| Free Cash Growth | 11.807 % | |
| Free Cash Growth QoQ | -241.503 % | |
| Free Cash Growth YoY | -69.249 % | |
| Free Cash Growth IPRWA | high: 300.833 % VLO: 11.807 % mean: -16.818 % median: -24.008 % low: -616.098 % |
|
| Free Cash To Net Income | 1.101 | |
| Cash Flow Margin | 2.646 % | |
| Cash Flow To Earnings | 1.108 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.204 % | |
| Return On Assets QoQ | -220.762 % | |
| Return On Assets YoY | -13.692 % | |
| Return On Assets IPRWA | high: 4.797 % VLO: 1.204 % mean: 1.197 % median: 0.982 % low: -3.385 % |
|
| Return On Capital Employed (ROCE) | 2.42 % | |
| Return On Equity (ROE) | 0.03 | |
| Return On Equity QoQ | -217.055 % | |
| Return On Equity YoY | -14.282 % | |
| Return On Equity IPRWA | high: 0.111 VLO: 0.03 mean: 0.029 median: 0.027 low: -0.087 |
|
| DuPont ROE | 3.002 % | |
| Return On Invested Capital (ROIC) | 2.195 % | |
| Return On Invested Capital QoQ | -236.082 % | |
| Return On Invested Capital YoY | -109.026 % | |
| Return On Invested Capital IPRWA | high: 6.932 % mean: 2.64 % median: 2.373 % VLO: 2.195 % low: -4.078 % |
|