Is VALERO ENERGY CORP/TX (VLO) Halal?

NYSE Energy United States $76.0B
✓ HALAL
Confidence: 95/100
VALERO ENERGY CORP/TX (VLO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 17.1% against the AAOIFI threshold of 30%, VALERO ENERGY CORP/TX comfortably passes the key financial ratio tests. The company operates in the Energy sector (Oil & Gas Refining & Marketing), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 17.1%
/ 30%
6.8%
/ 30%
14.4%
/ 30%
0.61%
/ 5%
✓ HALAL
DJIM 17.1%
/ 33%
6.8%
/ 33%
14.4%
/ 33%
0.61%
/ 5%
✓ HALAL
MSCI 20.2%
/ 33%
8.1%
/ 33%
17.0%
/ 33%
0.61%
/ 5%
✓ HALAL
S&P 17.1%
/ 33%
6.8%
/ 33%
14.4%
/ 33%
0.61%
/ 5%
✓ HALAL
FTSE 20.2%
/ 33%
8.1%
/ 33%
17.0%
/ 50%
0.61%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
33.6
Forward: 17.4
EPS
$7.58
Dividend Yield
189.0%
Payout: 59.7%
P/B Ratio
3.2
EV/EBITDA
11.3
EV: $85.9B
Revenue
$122.7B
Growth: -2.1%
Beta
0.7
Low volatility
Current Ratio
1.6

Profitability

Gross Margin 13.2%
Operating Margin 5.9%
Net Margin 2.0%
Return on Equity (ROE) 8.3%
Return on Assets (ROA) 5.0%

Cash Flow & Balance Sheet

Operating Cash Flow$5.8B
Free Cash Flow$5.0B
Total Debt$11.7B
Debt-to-Equity44.0
Current Ratio1.6
Total Assets$58.0B

Price & Trading

Last Close$248.14
50-Day MA$208.91
200-Day MA$171.21
Avg Volume3.8M
Beta0.7
52-Week Range
$99.00
$255.97

About VALERO ENERGY CORP/TX (VLO)

CEO
Mr. R. Lane Riggs
Employees
9,785
Sector
Energy
Industry
Oil & Gas Refining & Marketing
Country
United States
Exchange
NYSE
Market Cap
$76.0B
Currency
USD

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.

Purification Calculator

As a halal stock with 0.61% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is VALERO ENERGY CORP/TX (VLO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), VALERO ENERGY CORP/TX is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is VALERO ENERGY CORP/TX's debt ratio?

VALERO ENERGY CORP/TX's debt ratio is 17.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 20.2%.

Does VALERO ENERGY CORP/TX require dividend purification?

Yes, VALERO ENERGY CORP/TX has an impermissible income ratio of 0.61%, which means 0.61% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are VALERO ENERGY CORP/TX's key financial metrics?

VALERO ENERGY CORP/TX has a market capitalization of $76.0B, trailing P/E ratio of 33.6, and revenue of $122.7B. The company maintains a gross margin of 13.2% and a net margin of 2.0%. Return on equity stands at 8.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.