VLONEUTRAL

VLO Gross Margin Analysis

12.3%

Updated 225h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue left after covering direct production costs, so VLO's 12.3% means it keeps $0.123 of each sales dollar before other expenses.

Sector Performance

4th percentile

VLO

12.3%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

6.3%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue left after covering direct production costs, so VLO's 12.3% means it keeps $0.123 of each sales dollar before other expenses.

This level sits far below the sector median of 44.2%, placing VLO in the 5th percentile among peers, indicating the company is less efficient at converting sales into gross profit than nearly all comparable firms. The year-over-year change is N/A, but the quarter-over-quarter change is +95.2%, with historical values showing gross margin climbing from 6.3% to 12.3% in the most recent period. The combination of a very low absolute level with a sharp recent increase creates a mixed picture: the company remains at a structural disadvantage to peers, yet the recent jump may signal improving cost control or pricing power. For an investor, this implies elevated risk from weak profitability relative to the sector, but also a possible opportunity if the upward momentum continues. This metric neither strongly supports nor contradicts the overall NEUTRAL verdict—it offers a caution on current profitability while leaving room for cautious optimism based on the latest quarter.

Frequently Asked Questions

What does the Gross Margin tell investors about VLO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are VLO's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.