Скачать или смотреть Valero Beats The Competition | Q4 2023 Earnings Analysis

Hi! In this video I did an intrinsic value analysis for Valero, which is one of the biggest oil companies in the US. Valero is up 30% year to date while the stock market has increased 6%. This company is competing in the energy industry, and they have recently reported earnings results for the full year of 2023. I used a discounted cash flow valuation model in Microsoft Excel to try and figure out what the intrinsic value of Valero would be based on the financial ratios of their business.

Valero Energy Fourth Quarter and Full Year Earnings Results
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Business Model

Valero’s primary source of profit comes from refining oil into various petroleum products used in the energy market like car gasoline, diesel fuel, and jet fuel. They operate their refineries in countries all over the world like the US, Canada, and the UK, with their main focus on maximizing efficiency and minimizing costs.

Valero sells its products to the market through its network of retail gas stations across the US, with its oil profit margins fluctuating variably as a result of fluctuating gas prices, geopolitical tensions, and economic inflation.

Q4
Revenue of $35 billion down 15% from $41 billion year over year
Q4 Net income of $1.2 billion down 61% from $3.1 billion year over year
Returned $1.3 billion through share buybacks and dividends

Full Year
Revenue of $144 billion down 18% from $176 billion year over year
Net income of $8.8 billion down 23% from $11.5 billion year over year
Returned $6.6 billion through share buybacks and dividends
Increased quarterly cash dividend by 5% from $1.02 per share to $1.07 per share