As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Valero Energy Corp (VLO)
Valero Energy is one of the largest independent refiners in the United States. It operates 14 refineries with a total throughput capacity of 3.2 million barrels a day in the United States, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons of ethanol a year and holds a 50% stake in Diamond Green Diesel, which has capacity to produce 1.2 billion gallons per year of renewable diesel.
A quick look at the share price history (below) over the past twelve months shows that the price is down 11.81%. Here’s why the company is undervalued.
Key Stats
Market Cap: $38 Billion
Enterprise Value: $46 Billion
Operating Earnings
Operating Earnings: $18.89 Billion
Acquirer’s Multiple
Acquirer’s Multiple: 2.50
Free Cash Flow (TTM)
Free Cash Flow: $13.59 Billion
FCF/EV Yield %:
FCF/EV Yield: 32.91
Shareholder Yield %:
Shareholder Yield: 19.18
Other Indicators
Piotroski F-Score: 8.00
Altman Z-Score: 5.946
ROA (5 Year Avge%): 31
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