VALVOLINE INC (VVV) Fundamental Analysis & Valuation
NYSE:VVV • US92047W1018
Current stock price
32.61 USD
-0.62 (-1.87%)
At close:
32.61 USD
0 (0%)
After Hours:
This VVV fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. VVV Profitability Analysis
1.1 Basic Checks
- In the past year VVV was profitable.
- 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 (2.54%) is comparable to the rest of the industry.
- The Return On Equity of VVV (28.06%) is better than 84.55% of its industry peers.
- VVV's Return On Invested Capital of 6.64% is fine compared to the rest of the industry. VVV outperforms 62.60% of its industry peers.
- VVV had an Average Return On Invested Capital over the past 3 years of 11.31%. This is in line with the industry average of 13.24%.
- The 3 year average ROIC (11.31%) for VVV is well above the current ROIC(6.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 28.06% | ||
| ROIC | 6.64% |
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's Profit Margin of 4.91% is fine compared to the rest of the industry. VVV outperforms 77.24% of its industry peers.
- In the last couple of years the Profit Margin of VVV has declined.
- VVV's Operating Margin of 15.39% is amongst the best of the industry. VVV outperforms 93.50% of its industry peers.
- VVV's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 38.58%, VVV perfoms like the industry average, outperforming 55.28% of the companies in the same industry.
- VVV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.39% | ||
| PM (TTM) | 4.91% | ||
| GM | 38.58% |
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. VVV Health Analysis
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.
- VVV has less shares outstanding than it did 1 year ago.
- VVV has less shares outstanding than it did 5 years ago.
- VVV has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.66, we must say that VVV is in the distress zone and has some risk of bankruptcy.
- VVV has a Altman-Z score of 1.66. This is in the lower half of the industry: VVV underperforms 62.60% of its industry peers.
- VVV has a debt to FCF ratio of 28.80. This is a negative value and a sign of low solvency as VVV would need 28.80 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 28.80, VVV perfoms like the industry average, outperforming 42.28% of the companies in the same industry.
- VVV has a Debt/Equity ratio of 5.31. This is a high value indicating a heavy dependency on external financing.
- VVV has a worse Debt to Equity ratio (5.31) than 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.31 | ||
| Debt/FCF | 28.8 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.87
WACC7.64%
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.
- VVV has a worse Current ratio (0.70) than 91.06% 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.
- The Quick ratio of VVV (0.57) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.57 |
3. VVV Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 1.88% over the past year.
- The Earnings Per Share has been growing slightly by 1.32% on average over the past years.
- VVV shows a small growth in Revenue. In the last year, the Revenue has grown by 5.90%.
- Measured over the past years, VVV shows a quite strong growth in Revenue. The Revenue has been growing by 18.66% on average per year.
EPS 1Y (TTM)1.88%
EPS 3Y-9.48%
EPS 5Y1.32%
EPS Q2Q%15.62%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.43%
Revenue growth 5Y18.66%
Sales Q2Q%11.47%
3.2 Future
- Based on estimates for the next years, VVV will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.58% on average per year.
- VVV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.13% yearly.
EPS Next Y8.69%
EPS Next 2Y13.26%
EPS Next 3Y15.58%
EPS Next 5YN/A
Revenue Next Year19.56%
Revenue Next 2Y14.94%
Revenue Next 3Y13.13%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. VVV Valuation Analysis
4.1 Price/Earnings Ratio
- VVV is valuated rather expensively with a Price/Earnings ratio of 20.01.
- Compared to the rest of the industry, the Price/Earnings ratio of VVV indicates a somewhat cheap valuation: VVV is cheaper than 68.29% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.64. VVV is valued slightly cheaper when compared to this.
- VVV is valuated correctly with a Price/Forward Earnings ratio of 16.09.
- Based on the Price/Forward Earnings ratio, VVV is valued a bit cheaper than 66.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of VVV to the average of the S&P500 Index (21.36), we can say VVV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VVV is on the same level as its industry peers.
- VVV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.83 | ||
| EV/EBITDA | 14.73 |
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 15.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)15.2
EPS Next 2Y13.26%
EPS Next 3Y15.58%
5. VVV Dividend Analysis
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 3.82.
- Compared to the average S&P500 Dividend Yield of 1.82, 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 2Y13.26%
EPS Next 3Y15.58%
VVV Fundamentals: All Metrics, Ratios and Statistics
32.61
-0.62 (-1.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength37.27
Industry Growth54.04
Earnings (Last)02-04 2026-02-04/bmo
Earnings (Next)05-07 2026-05-07
Inst Owners116.97%
Inst Owner Change0.34%
Ins Owners0.3%
Ins Owner Change5.12%
Market Cap4.15B
Revenue(TTM)1.76B
Net Income(TTM)86.30M
Analysts79.05
Price Target42.62 (30.7%)
Short Float %11.66%
Short Ratio8.29
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)3.76%
Min EPS beat(2)-4.75%
Max EPS beat(2)12.27%
EPS beat(4)2
Avg EPS beat(4)1.04%
Min EPS beat(4)-6.75%
Max EPS beat(4)12.27%
EPS beat(8)5
Avg EPS beat(8)2.07%
EPS beat(12)6
Avg EPS beat(12)0.92%
EPS beat(16)8
Avg EPS beat(16)-0.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-1.1%
Revenue beat(4)0
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.39%
Revenue beat(8)1
Avg Revenue beat(8)-0.64%
Revenue beat(12)2
Avg Revenue beat(12)-0.66%
Revenue beat(16)2
Avg Revenue beat(16)-12.55%
PT rev (1m)-0.24%
PT rev (3m)6.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.97%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 16.09 | ||
| P/S | 2.36 | ||
| P/FCF | 71.83 | ||
| P/OCF | 12.94 | ||
| P/B | 13.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.73 |
EPS(TTM)1.63
EY5%
EPS(NY)2.03
Fwd EY6.22%
FCF(TTM)0.45
FCFY1.39%
OCF(TTM)2.52
OCFY7.73%
SpS13.81
BVpS2.42
TBVpS-7.83
PEG (NY)2.3
PEG (5Y)15.2
Graham Number9.41304 (-71.13%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.54% | ||
| ROE | 28.06% | ||
| ROCE | 8.91% | ||
| ROIC | 6.64% | ||
| ROICexc | 6.8% | ||
| ROICexgc | 12.13% | ||
| OM | 15.39% | ||
| PM (TTM) | 4.91% | ||
| GM | 38.58% | ||
| FCFM | 3.29% |
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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.31 | ||
| Debt/FCF | 28.8 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 210.57% | ||
| Cap/Sales | 14.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.11% | ||
| Profit Quality | 66.98% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.66 |
F-Score6
WACC7.64%
ROIC/WACC0.87
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)1.88%
EPS 3Y-9.48%
EPS 5Y1.32%
EPS Q2Q%15.62%
EPS Next Y8.69%
EPS Next 2Y13.26%
EPS Next 3Y15.58%
EPS Next 5YN/A
Revenue 1Y (TTM)5.9%
Revenue growth 3Y11.43%
Revenue growth 5Y18.66%
Sales Q2Q%11.47%
Revenue Next Year19.56%
Revenue Next 2Y14.94%
Revenue Next 3Y13.13%
Revenue Next 5YN/A
EBIT growth 1Y-16.35%
EBIT growth 3Y19.09%
EBIT growth 5Y25.88%
EBIT Next Year53.62%
EBIT Next 3Y24.16%
EBIT Next 5YN/A
FCF growth 1Y129.63%
FCF growth 3Y-37.03%
FCF growth 5Y-29.68%
OCF growth 1Y2729.51%
OCF growth 3Y1.5%
OCF growth 5Y-4.39%
VALVOLINE INC / VVV Fundamental Analysis 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 of VALVOLINE INC (VVV) stock?
ChartMill assigns a valuation rating of 4 / 10 to VALVOLINE INC (VVV). This can be considered as Fairly Valued.
What is the profitability of VVV stock?
VALVOLINE INC (VVV) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for VVV stock?
The Price/Earnings (PE) ratio for VALVOLINE INC (VVV) is 20.01 and the Price/Book (PB) ratio is 13.5.
Can you provide the expected EPS growth for VVV stock?
The Earnings per Share (EPS) of VALVOLINE INC (VVV) is expected to grow by 8.69% in the next year.