Valero EnergyMEX:VLO +8.50%59 Gross Margin % is 6.30% as of Mar. 2026, which is 38% above its 10-year median of 4.56. GuruFocus rates MEX:VLO with a GF Score™ of 59/100 and a GF Value™ of MXN2,536.21 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 867 Oil & Gas companies, Valero Energy ranks worse than 85.93% on this metric.
The historical rank and industry rank for Valero Energy's Gross Margin % or its related term are showing as below:
MEX:VLO'
s Gross Margin % Range Over the Past 10 Years
Min: -1.21 Med: 4.56 Max: 9.5
Current: 5.54
During the past 13 years, the highestGross Margin % of Valero Energy was 9.50%. The lowest was -1.21%. And the median was 4.56%.
MEX:VLO's Gross Margin % is ranked worse than 85.93% of 867
companies
in the Oil & Gas industry
Industry Median: 25.7
vs MEX:VLO: 5.54
Valero Energy had a gross margin of 6.30% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Valero Energy was 0.00% per year.
Valero Energy (MEX:VLO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Valero Energy had a gross margin of 6.30% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Valero Energy Gross Margin % Related Terms
Valero Energy Gross Margin % Historical Data
* Premium members only.
The historical data trend for Valero Energy's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:VLO vs MPC, PSX, DINO: Gross Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Valero Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Valero Energy Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Valero Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Valero Energy's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Valero Energy (MEX:VLO) has a Gross Margin % of 6.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Valero Energy and its competitors. This is 38% above median its historical median of 4.56. According to the industry distribution chart, Valero Energy ranks #745 out of 867 companies in the Oil & Gas industry, placing it in the top 85.9%.
Is Valero Energy's Gross Margin % too high?
Valero Energy's current Gross Margin % of 6.30% is 38% above median its 10-year median of 4.56. The Oil & Gas industry median Gross Margin % is 25.70. Valero Energy's value of 6.30% is 75.5% below this industry median. Based on the distribution chart, Valero Energy ranks #745 out of 867 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Valero Energy has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Valero Energy's Gross Margin % compare to MPC and PSX?
According to the Oil & Gas industry distribution chart, Valero Energy ranks #745 out of 867 companies for Gross Margin %. This places Valero Energy in the lower half of its industry. The industry median Gross Margin % is 25.70. Valero Energy's value of 6.30% is 75.5% below this benchmark. While the company's 10-year median is 4.56 vs. the industry median of 25.70, Valero Energy has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 867 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Valero Energy's current Gross Margin % of 6.30% is 75.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Valero Energy and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valero Energy's current Gross Margin % is 6.30%, which is 38% above median its own 10-year median of 4.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valero Energy stock overvalued right now?
Based on GuruFocus' analysis, Valero Energy (MEX:VLO) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,536.21, compared to a current price of MXN4,436.49 — trading 74.9% above its estimated fair value. The current Gross Margin % is 6.30%, which is 38% above median its 10-year median of 4.56 and 75.5% below the Oil & Gas industry median of 25.70. Valero Energy's overall GF Score™ is 59/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Valero Energy (MEX:VLO), the current Gross Margin % is 6.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Valero Energy (MEX:VLO) Overvalued in 2026?
Based on GuruFocus' analysis, Valero Energy stock appears to be overvalued.
The current stock price of MXN4,436.49 is trading 74.9% above its estimated GF Value™ of MXN2,536.21.
GuruFocus considers Valero Energy to be Significantly Overvalued.
Key valuation signals for MEX:VLO:
Gross Margin %: 6.30% (38% above median its 10-year median of 4.56)
GF Value™: MXN2,536.21 vs. price of MXN4,436.49 (74.9% above fair value)
Industry Position: 75.5% below the Oil & Gas median (#745 of 867)
No single metric tells the full story. See the MEX:VLO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries, with a total throughput capacity of 3.2 million barrels a day in the US, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which can produce 1.2 billion gallons per year of renewable diesel.
59GF Score
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