VALVOLINE INC (VVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VVV - US92047W1018 - Common Stock
29.86 USD
+0.06 (+0.2%)
29.86 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VVV. VVV was compared to 123 industry peers in the Specialty Retail industry. While VVV belongs to the best of the industry regarding profitability, there are concerns on its financial health. VVV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VVV was profitable.
VVV had a positive operating cash flow in the past year.
In the past 5 years VVV has always been profitable.
VVV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of VVV (7.89%) is better than 82.11% of its industry peers.
VVV has a better Return On Equity (62.25%) than 96.75% of its industry peers.
The Return On Invested Capital of VVV (10.18%) is better than 75.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VVV is in line with the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 62.25% | ||
| ROIC | 10.18% |
ROA(3y)21.9%
ROA(5y)18.26%
ROE(3y)291.62%
ROE(5y)265.15%
ROIC(3y)11.31%
ROIC(5y)9.35%
1.3 Margins
VVV has a better Profit Margin (12.32%) than 93.50% of its industry peers.
In the last couple of years the Profit Margin of VVV has declined.
VVV's Operating Margin of 18.55% is amongst the best of the industry. VVV outperforms 95.12% of its industry peers.
In the last couple of years the Operating Margin of VVV has grown nicely.
With a Gross Margin value of 38.50%, VVV perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Gross Margin of VVV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.55% | ||
| PM (TTM) | 12.32% | ||
| GM | 38.5% |
OM growth 3Y6.87%
OM growth 5Y6.08%
PM growth 3Y-28.93%
PM growth 5Y-22.32%
GM growth 3Y-0.03%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
VVV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, VVV has less shares outstanding
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 2.10 indicates that VVV is not a great score, but indicates only limited risk for bankruptcy at the moment.
VVV's Altman-Z score of 2.10 is in line compared to the rest of the industry. VVV outperforms 47.97% of its industry peers.
VVV has a debt to FCF ratio of 34.30. This is a negative value and a sign of low solvency as VVV would need 34.30 years to pay back of all of its debts.
VVV has a Debt to FCF ratio (34.30) which is comparable to the rest of the industry.
VVV has a Debt/Equity ratio of 3.78. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.78, VVV is not doing good in the industry: 77.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 34.3 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.13
WACC8.98%
2.3 Liquidity
VVV has a Current Ratio of 0.70. This is a bad value and indicates that VVV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of VVV (0.70) is worse than 89.43% of its industry peers.
VVV has a Quick Ratio of 0.70. This is a bad value and indicates that VVV is not financially healthy enough and could expect problems in meeting its short term obligations.
VVV's Quick ratio of 0.58 is in line compared to the rest of the industry. VVV outperforms 53.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.64% over the past year.
Measured over the past 5 years, VVV shows a small growth in Earnings Per Share. The EPS has been growing by 1.32% on average per year.
VVV shows a small growth in Revenue. In the last year, the Revenue has grown by 5.64%.
VVV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.66% yearly.
EPS 1Y (TTM)0.64%
EPS 3Y-9.48%
EPS 5Y1.32%
EPS Q2Q%-2.17%
Revenue 1Y (TTM)5.64%
Revenue growth 3Y11.43%
Revenue growth 5Y18.66%
Sales Q2Q%4.2%
3.2 Future
VVV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.93% yearly.
VVV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.39% yearly.
EPS Next Y8.99%
EPS Next 2Y12.05%
EPS Next 3Y14.93%
EPS Next 5YN/A
Revenue Next Year18.29%
Revenue Next 2Y14.39%
Revenue Next 3Y11.39%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.90, VVV is valued on the expensive side.
76.42% of the companies in the same industry are more expensive than VVV, based on the Price/Earnings ratio.
VVV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.61.
The Price/Forward Earnings ratio is 17.34, which indicates a rather expensive current valuation of VVV.
Based on the Price/Forward Earnings ratio, VVV is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
VVV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 17.34 |
4.2 Price Multiples
VVV's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VVV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.92 | ||
| EV/EBITDA | 11.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of VVV may justify a higher PE ratio.
VVV's earnings are expected to grow with 14.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)14.36
EPS Next 2Y12.05%
EPS Next 3Y14.93%
5. Dividend
5.1 Amount
VVV has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
VVV's Dividend Yield is a higher than the industry average which is at 1.98.
Compared to the average S&P500 Dividend Yield of 1.87, VVV is paying slightly less dividend.
| 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 2Y12.05%
EPS Next 3Y14.93%
29.86
+0.06 (+0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners113.86%
Inst Owner Change-2.49%
Ins Owners0.3%
Ins Owner Change5.54%
Market Cap3.80B
Revenue(TTM)1.71B
Net Income(TTM)210.70M
Analysts76.84
Price Target39.94 (33.76%)
Short Float %8.22%
Short Ratio4.63
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)-0.68%
Min EPS beat(2)-4.75%
Max EPS beat(2)3.39%
EPS beat(4)2
Avg EPS beat(4)-0.52%
Min EPS beat(4)-6.75%
Max EPS beat(4)6.05%
EPS beat(8)4
Avg EPS beat(8)0.47%
EPS beat(12)5
Avg EPS beat(12)-2.54%
EPS beat(16)8
Avg EPS beat(16)-0.91%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.56%
Revenue beat(8)1
Avg Revenue beat(8)-0.85%
Revenue beat(12)2
Avg Revenue beat(12)-0.73%
Revenue beat(16)2
Avg Revenue beat(16)-16.58%
PT rev (1m)-12.1%
PT rev (3m)-12.42%
EPS NQ rev (1m)-10.13%
EPS NQ rev (3m)-11.97%
EPS NY rev (1m)-9.68%
EPS NY rev (3m)-10.15%
Revenue NQ rev (1m)2.23%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)4.45%
Revenue NY rev (3m)3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.9 | ||
| Fwd PE | 17.34 | ||
| P/S | 2.22 | ||
| P/FCF | 99.92 | ||
| P/OCF | 12.78 | ||
| P/B | 11.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.55 |
EPS(TTM)1.58
EY5.29%
EPS(NY)1.72
Fwd EY5.77%
FCF(TTM)0.3
FCFY1%
OCF(TTM)2.34
OCFY7.83%
SpS13.45
BVpS2.66
TBVpS-3.16
PEG (NY)2.1
PEG (5Y)14.36
Graham Number9.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 62.25% | ||
| ROCE | 13.65% | ||
| ROIC | 10.18% | ||
| ROICexc | 10.41% | ||
| ROICexgc | 15.45% | ||
| OM | 18.55% | ||
| PM (TTM) | 12.32% | ||
| GM | 38.5% | ||
| FCFM | 2.22% |
ROA(3y)21.9%
ROA(5y)18.26%
ROE(3y)291.62%
ROE(5y)265.15%
ROIC(3y)11.31%
ROIC(5y)9.35%
ROICexc(3y)12.73%
ROICexc(5y)10.28%
ROICexgc(3y)19.68%
ROICexgc(5y)15.39%
ROCE(3y)15.17%
ROCE(5y)12.55%
ROICexgc growth 3Y25.94%
ROICexgc growth 5Y22.17%
ROICexc growth 3Y22.53%
ROICexc growth 5Y20.78%
OM growth 3Y6.87%
OM growth 5Y6.08%
PM growth 3Y-28.93%
PM growth 5Y-22.32%
GM growth 3Y-0.03%
GM growth 5Y-1.44%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 34.3 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 217.09% | ||
| Cap/Sales | 15.16% | ||
| Interest Coverage | 5.65 | ||
| Cash Conversion | 68.07% | ||
| Profit Quality | 18.04% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 2.1 |
F-Score6
WACC8.98%
ROIC/WACC1.13
Cap/Depr(3y)210.75%
Cap/Depr(5y)194.73%
Cap/Sales(3y)13.84%
Cap/Sales(5y)13.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.64%
EPS 3Y-9.48%
EPS 5Y1.32%
EPS Q2Q%-2.17%
EPS Next Y8.99%
EPS Next 2Y12.05%
EPS Next 3Y14.93%
EPS Next 5YN/A
Revenue 1Y (TTM)5.64%
Revenue growth 3Y11.43%
Revenue growth 5Y18.66%
Sales Q2Q%4.2%
Revenue Next Year18.29%
Revenue Next 2Y14.39%
Revenue Next 3Y11.39%
Revenue Next 5YN/A
EBIT growth 1Y1.12%
EBIT growth 3Y19.09%
EBIT growth 5Y25.88%
EBIT Next Year54.14%
EBIT Next 3Y24.71%
EBIT Next 5YN/A
FCF growth 1Y-6.63%
FCF growth 3Y-37.03%
FCF growth 5Y-29.68%
OCF growth 1Y12.11%
OCF growth 3Y1.5%
OCF growth 5Y-4.39%
VALVOLINE INC / VVV FAQ
Can you provide the ChartMill fundamental rating for VALVOLINE INC?
ChartMill assigns a fundamental rating of 5 / 10 to VVV.
What is the valuation status for VVV stock?
ChartMill assigns a valuation rating of 4 / 10 to VALVOLINE INC (VVV). This can be considered as Fairly Valued.
Can you provide the profitability details for VALVOLINE INC?
VALVOLINE INC (VVV) has a profitability rating of 7 / 10.
Can you provide the financial health for VVV stock?
The financial health rating of VALVOLINE INC (VVV) is 3 / 10.
What is the earnings growth outlook for VALVOLINE INC?
The Earnings per Share (EPS) of VALVOLINE INC (VVV) is expected to grow by 8.99% in the next year.