VALVOLINE INC (VVV) Stock Fundamental Analysis
USA - NYSE:VVV - US92047W1018 - Common Stock
31.56 USD
+0.27 (+0.86%)
31.56 USD
0 (0%)
Taking everything into account, VVV scores 5 out of 10 in our fundamental rating. VVV was compared to 122 industry peers in the Specialty Retail industry. VVV has an excellent profitability rating, but there are concerns on its financial health. VVV has a correct valuation and a medium 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.
Of the past 5 years VVV 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VVV (10.85%) is better than 86.07% of its industry peers.
With an excellent Return On Equity value of 88.65%, VVV belongs to the best of the industry, outperforming 99.18% of the companies in the same industry.
The Return On Invested Capital of VVV (11.30%) is better than 78.69% 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 11.67%.
The last Return On Invested Capital (11.30%) for VVV is above the 3 year average (9.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 88.65% | ||
| ROIC | 11.3% |
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
With an excellent Profit Margin value of 16.43%, VVV belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
In the last couple of years the Profit Margin of VVV has grown nicely.
The Operating Margin of VVV (18.65%) is better than 95.08% of its industry peers.
VVV's Operating Margin has improved in the last couple of years.
VVV's Gross Margin of 38.49% is in line compared to the rest of the industry. VVV outperforms 57.38% of its industry peers.
VVV's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.65% | ||
| PM (TTM) | 16.43% | ||
| GM | 38.49% |
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.
VVV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for VVV has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.23 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 2.23. This is comparable to the rest of the industry: VVV outperforms 50.82% of its industry peers.
The Debt to FCF ratio of VVV is 24.05, which is on the high side as it means it would take VVV, 24.05 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 24.05, VVV perfoms like the industry average, outperforming 48.36% of the companies in the same industry.
VVV has a Debt/Equity ratio of 3.37. This is a high value indicating a heavy dependency on external financing.
VVV has a Debt to Equity ratio of 3.37. This is in the lower half of the industry: VVV underperforms 75.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.37 | ||
| Debt/FCF | 24.05 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.27
WACC8.93%
2.3 Liquidity
VVV has a Current Ratio of 0.73. 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 Current ratio of 0.73 is on the low side compared to the rest of the industry. VVV is outperformed by 89.34% of its industry peers.
A Quick Ratio of 0.60 indicates that VVV may have some problems paying its short term obligations.
VVV has a Quick ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
VVV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.00%.
The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
Looking at the last year, VVV shows a small growth in Revenue. The Revenue has grown by 7.53% in the last year.
The Revenue has been decreasing by -7.49% on average over the past years.
EPS 1Y (TTM)6%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%4.44%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%4.18%
3.2 Future
The Earnings Per Share is expected to grow by 13.35% 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 10.08% on average per year.
EPS Next Y3.95%
EPS Next 2Y10.2%
EPS Next 3Y13.35%
EPS Next 5YN/A
Revenue Next Year5.88%
Revenue Next 2Y9.47%
Revenue Next 3Y10.08%
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
A Price/Earnings ratio of 19.85 indicates a rather expensive valuation of VVV.
VVV's Price/Earnings ratio is a bit cheaper when compared to the industry. VVV is cheaper than 70.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. VVV is valued slightly cheaper when compared to this.
VVV is valuated correctly with a Price/Forward Earnings ratio of 16.55.
64.75% of the companies in the same industry are more expensive than VVV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VVV to the average of the S&P500 Index (32.73), we can say VVV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VVV.
VVV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.35 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VVV does not grow enough to justify the current Price/Earnings ratio.
VVV has an outstanding profitability rating, which may justify a higher PE ratio.
VVV's earnings are expected to grow with 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.03
PEG (5Y)8.05
EPS Next 2Y10.2%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, VVV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.42, VVV pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.37, 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 2Y10.2%
EPS Next 3Y13.35%
31.56
+0.27 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.84%
Inst Owner Change-4.31%
Ins Owners0.27%
Ins Owner Change1.56%
Market Cap4.01B
Revenue(TTM)1.69B
Net Income(TTM)278.00M
Analysts76.84
Price Target45.43 (43.95%)
Short Float %8.6%
Short Ratio6.84
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)-1.68%
Min EPS beat(2)-6.75%
Max EPS beat(2)3.39%
EPS beat(4)3
Avg EPS beat(4)2.61%
Min EPS beat(4)-6.75%
Max EPS beat(4)7.74%
EPS beat(8)4
Avg EPS beat(8)0.42%
EPS beat(12)6
Avg EPS beat(12)-0.89%
EPS beat(16)9
Avg EPS beat(16)-0.29%
Revenue beat(2)0
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.39%
Revenue beat(4)1
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)2.56%
Revenue beat(8)1
Avg Revenue beat(8)-0.8%
Revenue beat(12)2
Avg Revenue beat(12)-5.43%
Revenue beat(16)2
Avg Revenue beat(16)-31.04%
PT rev (1m)-0.37%
PT rev (3m)2.79%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 16.55 | ||
| P/S | 2.37 | ||
| P/FCF | 89.35 | ||
| P/OCF | 14.5 | ||
| P/B | 12.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.65 |
EPS(TTM)1.59
EY5.04%
EPS(NY)1.91
Fwd EY6.04%
FCF(TTM)0.35
FCFY1.12%
OCF(TTM)2.18
OCFY6.9%
SpS13.31
BVpS2.47
TBVpS-3.14
PEG (NY)5.03
PEG (5Y)8.05
Graham Number9.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 88.65% | ||
| ROCE | 14.13% | ||
| ROIC | 11.3% | ||
| ROICexc | 11.65% | ||
| ROICexgc | 17.37% | ||
| OM | 18.65% | ||
| PM (TTM) | 16.43% | ||
| GM | 38.49% | ||
| FCFM | 2.65% |
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%
ROICexgc growth 3Y28.72%
ROICexgc 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 | 3.37 | ||
| Debt/FCF | 24.05 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 200.78% | ||
| Cap/Sales | 13.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.18% | ||
| Profit Quality | 16.15% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.23 |
F-Score7
WACC8.93%
ROIC/WACC1.27
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)6%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%4.44%
EPS Next Y3.95%
EPS Next 2Y10.2%
EPS Next 3Y13.35%
EPS Next 5YN/A
Revenue 1Y (TTM)7.53%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%4.18%
Revenue Next Year5.88%
Revenue Next 2Y9.47%
Revenue Next 3Y10.08%
Revenue Next 5YN/A
EBIT growth 1Y4.33%
EBIT growth 3Y14.61%
EBIT growth 5Y-3.86%
EBIT Next Year40.69%
EBIT Next 3Y22.59%
EBIT Next 5YN/A
FCF growth 1Y140.41%
FCF growth 3Y-46.11%
FCF growth 5Y-28.45%
OCF growth 1Y517.41%
OCF growth 3Y-13.1%
OCF growth 5Y-3.99%
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 8 / 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 3.95% in the next year.