VLONEUTRAL

Gross Margin

6.3%

Updated 56h ago

Sector Performance

1th percentile

VLO

6.3%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

VLO's gross margin of 6.3% means that for every dollar of revenue, the company keeps only 6.3 cents after deducting the direct costs of producing its products — a very thin cushion for covering other expenses.

Among sector peers, this sits far below the sector median of 44.6%, placing VLO in the 1th percentile — meaning 99% of peers have a higher gross margin. The year-over-year change, quarter-over-quarter change, and the trend over the last eight quarters are all reported as N/A, so no directional information is available. The combination of an extremely low gross margin level with no trend data suggests elevated risk, as the company operates with minimal profit buffer compared to its industry. This metric directly contradicts the overall NEUTRAL verdict, because a gross margin this far below the median typically signals structural cost or pricing challenges that warrant a more cautious view.

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: COST (12.8%), WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%).

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.