Today’s Stock: Valero Energy Corporation (VLO)Today’s Stock: Valero Energy Corporation (VLO)

Valero Energy Corporation manufactures, markets, and sells petroleum-based and low-carbon liquid transportation fuels and petrochemical products in the United States, Canada, the United Kingdom, Ireland, Latin America, Mexico, Peru, and internationally. It operates through three segments: Refining, Renewable Diesel, and Ethanol. The company produces California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB) and Conventional Blendstock for Oxygenate Blending (CBOB) gasolines, CARB diesel, diesel, jet fuel, heating oil, and asphalt; feedstocks; aromatics; sulfur and residual fuel oil; intermediate oils; and sulfur, sweet, and sour crude oils.

It sells its refined products through wholesale rack and bulk markets; and through outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brands. The company also owns and operates renewable diesel and ethanol plants, as well as produces and sells renewable diesel, renewable naphtha, and neat sustainable aviation fuel under the Diamond Green Diesel brand name. In addition, it offers ethanol and various co-products, including dry distillers grains, syrup, and inedible distillers corn oil to animal feed customers. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997.

Valero Energy Corporation was founded in 1980 and is headquartered in San Antonio, Texas.

My Thoughts 💭My Thoughts 💭

Very familiar with Valero and Texaco brands being a customer of their gasoline products. I remember Valero expanding like crazy in my hometown but years later the gas stations either closed or bought out by another brand.

Ansel adding a fuel company to the re-industrialization portfolio is a sound investment. Let’s take a look at the fundamentals

At 339.5k sats per share ($70,658), and a 6.7k sat per share yearly dividend. It would take 50 years to break even.

The company trades at a PE 30 which means investors are paying $30 access $1 of earnings. An expensive stock by historical standards.

Let’s review some key fundamentals to determine if this stock is worth spending sats on.

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Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

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Ownership breakdown :Ownership breakdown :

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The fundamentals of this company are decent. The balance sheet is okay, the growth prospects are okay (projected to grow much slower than bitcoin), the dividend payments is okay, and the company is profitable but working on razor thin margins.

The negatives include the elevated valuation, the high concentration of ownership by institutions, and an overpaid CEO.

From a Bitcoiner perspective. Paying 339k sats for one share is a bit steep. While dividend payment is nice and better than most stocks in the length it would take to recoup the initial investment 330k SATS is still way too much.

Especially for a company that has meh fundamentals.

Here is the performance according to Simply Wall Street

Oil runs the world thus having shares in this stock is not a total loss of sats but it’s a company that is hard to get excited about.

Plus as we look forward will oil and gas still be a massive player in the energy markets? It remains to be seen but I would suggest not spending any sats on this stock.