VALVOLINE INC (VVV) Stock Fundamental Analysis
NYSE:VVV - New York Stock Exchange, Inc. - US92047W1018 - Common Stock
Taking everything into account, VVV scores 5 out of 10 in our fundamental rating. VVV was compared to 119 industry peers in the Specialty Retail industry. VVV has an excellent profitability rating, but there are concerns on its financial health. VVV is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VVV had positive earnings in the past year.
VVV had a positive operating cash flow in the past year.
VVV had positive earnings in each of the past 5 years.
VVV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.67%, VVV belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
VVV's Return On Equity of 113.95% is amongst the best of the industry. VVV outperforms 98.28% of its industry peers.
The Return On Invested Capital of VVV (12.03%) is better than 80.17% of its industry peers.
VVV had an Average Return On Invested Capital over the past 3 years of 9.44%. This is below the industry average of 12.38%.
The last Return On Invested Capital (12.03%) for VVV is above the 3 year average (9.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 113.95% | ||
| ROIC | 12.03% |
ROA(3y)23.41%
ROA(5y)18.75%
ROE(3y)317.01%
ROE(5y)N/A
ROIC(3y)9.44%
ROIC(5y)7.69%
1.3 Margins
The Profit Margin of VVV (13.06%) is better than 95.69% of its industry peers.
VVV's Profit Margin has improved in the last couple of years.
VVV has a Operating Margin of 19.38%. This is amongst the best in the industry. VVV outperforms 96.55% of its industry peers.
VVV's Operating Margin has improved in the last couple of years.
VVV's Gross Margin of 38.22% is in line compared to the rest of the industry. VVV outperforms 56.90% of its industry peers.
VVV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.38% | ||
| PM (TTM) | 13.06% | ||
| GM | 38.22% |
OM growth 3Y-1.2%
OM growth 5Y3.93%
PM growth 3Y-31.43%
PM growth 5Y8.46%
GM growth 3Y-2.85%
GM growth 5Y2.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VVV is still creating some value.
The number of shares outstanding for VVV has been reduced compared to 1 year ago.
The number of shares outstanding for VVV has been reduced compared to 5 years ago.
VVV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.35 indicates that VVV is not a great score, but indicates only limited risk for bankruptcy at the moment.
VVV has a Altman-Z score of 2.35. This is comparable to the rest of the industry: VVV outperforms 51.72% of its industry peers.
The Debt to FCF ratio of VVV is 31.97, which is on the high side as it means it would take VVV, 31.97 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 31.97, VVV is in line with its industry, outperforming 43.97% of the companies in the same industry.
A Debt/Equity ratio of 6.88 is on the high side and indicates that VVV has dependencies on debt financing.
VVV has a Debt to Equity ratio of 6.88. This is amonst the worse of the industry: VVV underperforms 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.88 | ||
| Debt/FCF | 31.97 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.23
WACC9.8%
2.3 Liquidity
A Current Ratio of 0.72 indicates that VVV may have some problems paying its short term obligations.
With a Current ratio value of 0.72, VVV is not doing good in the industry: 92.24% of the companies in the same industry are doing better.
VVV has a Quick Ratio of 0.72. This is a bad value and indicates that VVV is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.61, VVV is doing good in the industry, outperforming 61.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
VVV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.75%, which is quite impressive.
Measured over the past 5 years, VVV shows a small growth in Earnings Per Share. The EPS has been growing by 2.47% on average per year.
The Revenue has grown by 12.16% in the past year. This is quite good.
The Revenue has been decreasing by -7.49% on average over the past years.
EPS 1Y (TTM)29.75%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%17.95%
Revenue 1Y (TTM)12.16%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%11.67%
3.2 Future
The Earnings Per Share is expected to grow by 14.26% on average over the next years. This is quite good.
Based on estimates for the next years, VVV will show a quite strong growth in Revenue. The Revenue will grow by 10.23% on average per year.
EPS Next Y4.07%
EPS Next 2Y11.53%
EPS Next 3Y14.26%
EPS Next 5YN/A
Revenue Next Year5.7%
Revenue Next 2Y8.94%
Revenue Next 3Y10.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.22, the valuation of VVV can be described as rather expensive.
Based on the Price/Earnings ratio, VVV is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. VVV is around the same levels.
The Price/Forward Earnings ratio is 22.31, which indicates a rather expensive current valuation of VVV.
The rest of the industry has a similar Price/Forward Earnings ratio as VVV.
VVV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
VVV's Enterprise Value to EBITDA is on the same level as the industry average.
VVV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 114.89 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VVV has an outstanding profitability rating, which may justify a higher PE ratio.
VVV's earnings are expected to grow with 14.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.7
PEG (5Y)9.42
EPS Next 2Y11.53%
EPS Next 3Y14.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, VVV has a reasonable but not impressive dividend return.
VVV's Dividend Yield is a higher than the industry average which is at 3.27.
VVV's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
VVV has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y11.53%
EPS Next 3Y14.26%
VALVOLINE INC
NYSE:VVV (1/21/2025, 8:04:00 PM)
After market: 36.43 -0.02 (-0.05%)36.45
+0.23 (+0.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100%
Inst Owner Change0.4%
Ins Owners0.24%
Ins Owner Change6.4%
Market Cap4.68B
Analysts77.89
Price Target44.49 (22.06%)
Short Float %4.6%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-6.2%
Max EPS beat(2)7.74%
EPS beat(4)2
Avg EPS beat(4)1.46%
Min EPS beat(4)-6.2%
Max EPS beat(4)7.74%
EPS beat(8)3
Avg EPS beat(8)-3.55%
EPS beat(12)6
Avg EPS beat(12)-1.04%
EPS beat(16)10
Avg EPS beat(16)3.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-0.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)-0.36%
Revenue beat(8)1
Avg Revenue beat(8)-1.04%
Revenue beat(12)1
Avg Revenue beat(12)-22.07%
Revenue beat(16)4
Avg Revenue beat(16)-30.25%
PT rev (1m)-0.31%
PT rev (3m)-6.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.08%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-6.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 22.31 | ||
| P/S | 2.89 | ||
| P/FCF | 114.89 | ||
| P/OCF | 17.64 | ||
| P/B | 25.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)1.57
EY4.31%
EPS(NY)1.63
Fwd EY4.48%
FCF(TTM)0.32
FCFY0.87%
OCF(TTM)2.07
OCFY5.67%
SpS12.62
BVpS1.45
TBVpS-4.05
PEG (NY)5.7
PEG (5Y)9.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.67% | ||
| ROE | 113.95% | ||
| ROCE | 15.05% | ||
| ROIC | 12.03% | ||
| ROICexc | 12.44% | ||
| ROICexgc | 19.14% | ||
| OM | 19.38% | ||
| PM (TTM) | 13.06% | ||
| GM | 38.22% | ||
| FCFM | 2.51% |
ROA(3y)23.41%
ROA(5y)18.75%
ROE(3y)317.01%
ROE(5y)N/A
ROIC(3y)9.44%
ROIC(5y)7.69%
ROICexc(3y)10.86%
ROICexc(5y)8.92%
ROICexgc(3y)16.64%
ROICexgc(5y)13.28%
ROCE(3y)11.8%
ROCE(5y)9.62%
ROICexcg growth 3Y28.72%
ROICexcg growth 5Y-9.33%
ROICexc growth 3Y23.11%
ROICexc growth 5Y-9.61%
OM growth 3Y-1.2%
OM growth 5Y3.93%
PM growth 3Y-31.43%
PM growth 5Y8.46%
GM growth 3Y-2.85%
GM growth 5Y2.43%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.88 | ||
| Debt/FCF | 31.97 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 211.9% | ||
| Cap/Sales | 13.86% | ||
| Interest Coverage | 4.01 | ||
| Cash Conversion | 63.18% | ||
| Profit Quality | 19.24% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.35 |
F-Score7
WACC9.8%
ROIC/WACC1.23
Cap/Depr(3y)200.01%
Cap/Depr(5y)197.07%
Cap/Sales(3y)12.35%
Cap/Sales(5y)14.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.75%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%17.95%
EPS Next Y4.07%
EPS Next 2Y11.53%
EPS Next 3Y14.26%
EPS Next 5YN/A
Revenue 1Y (TTM)12.16%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%11.67%
Revenue Next Year5.7%
Revenue Next 2Y8.94%
Revenue Next 3Y10.23%
Revenue Next 5YN/A
EBIT growth 1Y12.04%
EBIT growth 3Y14.61%
EBIT growth 5Y-3.86%
EBIT Next Year38.08%
EBIT Next 3Y21.88%
EBIT Next 5YN/A
FCF growth 1Y118.39%
FCF growth 3Y-46.11%
FCF growth 5Y-28.45%
OCF growth 1Y749.76%
OCF growth 3Y-13.1%
OCF growth 5Y-3.99%