CluenexValero Energy VLO
Valero Energy scores weak on business quality (3.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Valero Energy does
Valero Energy refines crude oil into petroleum products and ethanol, selling gasoline, diesel, and jet fuel to wholesale and retail buyers. The company relies on its massive processing network to turn feedstock into high-demand transportation fuels. Valero is currently steering operations to capture value from shifting global energy markets and regulatory bailouts.
- What it does best
Valero converts heavy crude into high-value products efficiently, generating $10.1B in free cash flow. This scale outpaces peers like MPC, which sits at an 8.3% free cash flow margin compared to Valero's stronger cash conversion.
- The main risk
Vulnerability to volatile refining margins and crude oil price swings threatens earnings stability. If global crack spreads compress, its 7.2% operating margin leaves little cushion for profit retention.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin sits at 8.0% and operating margin at 7.2%, reflecting compressed profitability across its refining fleet. Margins are contracting as input costs weigh down bottom-line scaling.
Valero operates in the bottom quartile for gross margin at 8.0%, reflecting a commodity business with minimal pricing power. Rivals can easily undercut margins, preventing any durable competitive advantage.
Revenue fell 5.5% to $139.4B, continuing a downward trend from prior years where annual revenue dropped from $176.4B in 2022. Growth is fading as top-line demand contracts.
Total debt sits at $10.6B against $4.7B in cash, while interest coverage of 17.8x makes debt servicing manageable. Free cash flow reached $10.1B, keeping the balance sheet on solid footing.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on VLO
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Valero Energy scores weak on the Cluenex quality check (3.9 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 22, 2026, before the open.
See VLO today
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Cite this page: Cluenex, “Valero Energy (VLO)”, https://cluenex.com/stocks/vlo/, data as of Oct 10, 2026.