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Rating Change Detail - VALERO ENERGY CORPORATION (VLO) - 3/7/2013
The stock was upgraded from No Interest to Some Interest on 3/7/2013 by the Price/Sales Investor Strategy based on the principles of Kenneth Fisher. The score according to this strategy rose from 50% to 90%. A full detailed analysis of VLO using this strategy is included below. For a full detailed analysis of VLO using 12 proven strategies of Wall Street Legends, take a free trial to Validea.com

Detailed Analysis of VALERO ENERGY CORPORATION (VLO)

Strategy: Price/Sales Investor - Based on: Kenneth Fisher

PRICE/SALES RATIO: [PASS]

The prospective company should have a low Price/Sales ratio. Non-cyclical (non-Smokestack) companies with Price/Sales ratios below 0.75 are tremendous values and should be sought. VLO's P/S of 0.19 based on trailing 12 month sales, is below 0.75 which is considered quite attractive. It passes this methodology's P/S ratio test with flying colors.

TOTAL DEBT/EQUITY RATIO: [PASS]

Less debt equals less risk according to this methodology. VLO's Debt/Equity of 39.09% is acceptable, thus passing the test.

PRICE/RESEARCH RATIO: [PASS]

This methodology considers companies in the Technology and Medical sectors to be attractive if they have low Price/Research ratios. VLO is neither a Technology nor Medical company. Therefore the Price/Research ratio is not available and, hence, not much emphasis should be placed on this particular variable.

PRELIMINARY GRADE: Some Interest in VLO At this Point
Is VLO a "Super Stock"? NO

PRICE/SALES RATIO: [PASS]

The prospective company should have a low Price/Sales ratio. Non-cyclical(non-Smokestack) companies with Price/Sales ratios below .75 are tremendous values and should be sought.VLO's P/S ratio of 0.19 is below .75 which is considered extremely attractive. It passes this methodology's P/S ratio test with flying colors.

LONG-TERM EPS GROWTH RATE: [PASS]

This methodology looks for companies that have an inflation adjusted EPS growth rate greater than 15%. VLO's inflation adjusted EPS growth rate of 29.22% passes the test.

FREE CASH PER SHARE: [PASS]

This methodology looks for companies that have a positive free cash per share. Companies should have enough free cash available to sustain three years of losses. This is based on the premise that companies without cash will soon be out of business. VLO's free cash per share of 3.56 passes this criterion.

THREE YEAR AVERAGE NET PROFIT MARGIN: [FAIL]

This methodology looks for companies that have an average net profit margin of 5% or greater over a three year period. VLO, whose three year net profit margin averages 1.18%, fails this evaluation.

For a full detailed analysis of VLO using 12 proven strategies of Wall Street Legends,
take a free trial to Validea.com

Rating Change Detail - VALERO ENERGY CORPORATION (VLO) - 3/7/2013

Detailed Analysis of VALERO ENERGY CORPORATION (VLO)

Strategy: Price/Sales Investor - Based on: Kenneth Fisher