Rating Change #4
Valero Energy Corporation (VLO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- VLO's very impressive revenue growth exceeded the industry average of 36.0%. Since the same quarter one year prior, revenues leaped by 61.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- VALERO ENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, VALERO ENERGY CORP turned its bottom line around by earning $1.63 versus -$0.45 in the prior year. This year, the market expects an improvement in earnings ($3.50 versus $1.63).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 312.0% when compared to the same quarter one year prior, rising from $292.00 million to $1,203.00 million.
- Net operating cash flow has significantly increased by 61.26% to $1,374.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 29.21%.
Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Retail, and Ethanol. The company has a P/E ratio of 5.6, below the average energy industry P/E ratio of 7.5 and below the S&P 500 P/E ratio of 17.7. Valero Energy has a market cap of $11.77 billion and is part of the basic materials sector and energy industry. Shares are up 9.5% year to date as of the close of trading on Thursday.You can view the full Valero Energy Ratings Report or get investment ideas from our investment research center.
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