Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
I've been keeping an eye on Valero Energy Corporation (NYSE:VLO) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe VLO has a lot to offer. Basically, it is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on Valero Energy here.
Established dividend payer with adequate balance sheet
VLO's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that VLO has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. VLO appears to have made good use of debt, producing operating cash levels of 0.45x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
VLO’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 4.3%.
For Valero Energy, there are three essential aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for VLO’s future growth? Take a look at our free research report of analyst consensus for VLO’s outlook.
- Historical Performance: What has VLO's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VLO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.