VALVOLINE INC (VVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VVV - US92047W1018 - Common Stock
30 USD
-1.31 (-4.18%)
30 USD
0 (0%)
Overall VVV gets a fundamental rating of 5 out of 10. We evaluated VVV against 121 industry peers in the Specialty Retail industry. VVV scores excellent on profitability, but there are concerns on its financial health. VVV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VVV was profitable.
In the past year VVV had a positive cash flow from operations.
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
VVV has a better Return On Assets (7.89%) than 80.99% of its industry peers.
VVV has a Return On Equity of 62.25%. This is amongst the best in the industry. VVV outperforms 97.52% of its industry peers.
With a decent Return On Invested Capital value of 10.18%, VVV is doing good in the industry, outperforming 75.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VVV is in line with the industry average of 12.25%.
| 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 93.39% of its industry peers.
VVV's Profit Margin has declined in the last couple of years.
The Operating Margin of VVV (18.55%) is better than 95.04% of its industry peers.
VVV's Operating Margin has improved in the last couple of years.
VVV has a Gross Margin (38.50%) which is in line with its industry peers.
VVV's Gross Margin has been stable in the last couple of years.
| 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
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
VVV has an Altman-Z score of 2.15. This is not the best score and indicates that VVV is in the grey zone with still only limited risk for bankruptcy at the moment.
VVV's Altman-Z score of 2.15 is in line compared to the rest of the industry. VVV outperforms 48.76% of its industry peers.
The Debt to FCF ratio of VVV is 34.30, which is on the high side as it means it would take VVV, 34.30 years of fcf income to pay off all of its debts.
VVV's Debt to FCF ratio of 34.30 is in line compared to the rest of the industry. VVV outperforms 47.11% of its industry peers.
VVV has a Debt/Equity ratio of 3.78. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.78, VVV is doing worse than 76.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 34.3 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.13
WACC9.01%
2.3 Liquidity
A Current Ratio of 0.70 indicates that VVV may have some problems paying its short term obligations.
VVV's Current ratio of 0.70 is on the low side compared to the rest of the industry. VVV is outperformed by 88.43% 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 has a Quick ratio of 0.58. This is comparable to the rest of the industry: VVV outperforms 56.20% 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.
The Earnings Per Share has been growing slightly by 1.32% on average over the past years.
The Revenue has been growing slightly by 5.64% in the past year.
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
Based on estimates for the next years, VVV will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.93% on average per year.
Based on estimates for the next years, VVV will show a quite strong growth in Revenue. The Revenue will grow by 11.39% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 18.99, which indicates a rather expensive current valuation of VVV.
Based on the Price/Earnings ratio, VVV is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. VVV is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 17.42 indicates a rather expensive valuation of VVV.
Based on the Price/Forward Earnings ratio, VVV is valued a bit cheaper than the industry average as 66.94% 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 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
VVV's Enterprise Value to EBITDA ratio is in line with 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 | 100.39 | ||
| EV/EBITDA | 11.99 |
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)2.11
PEG (5Y)14.43
EPS Next 2Y12.05%
EPS Next 3Y14.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, VVV has a reasonable but not impressive dividend return.
In the last 3 months the price of VVV has falen by -22.63%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.67, VVV pays a bit more dividend than its industry peers.
VVV's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| 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%
30
-1.31 (-4.18%)
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 Cap3.81B
Revenue(TTM)1.71B
Net Income(TTM)210.70M
Analysts76.84
Price Target39.94 (33.13%)
Short Float %8.05%
Short Ratio5.33
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)-11.43%
EPS NQ rev (1m)-8.7%
EPS NQ rev (3m)-10.56%
EPS NY rev (1m)-9.68%
EPS NY rev (3m)-10.15%
Revenue NQ rev (1m)2.57%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)4.45%
Revenue NY rev (3m)3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.99 | ||
| Fwd PE | 17.42 | ||
| P/S | 2.23 | ||
| P/FCF | 100.39 | ||
| P/OCF | 12.84 | ||
| P/B | 11.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.99 |
EPS(TTM)1.58
EY5.27%
EPS(NY)1.72
Fwd EY5.74%
FCF(TTM)0.3
FCFY1%
OCF(TTM)2.34
OCFY7.79%
SpS13.45
BVpS2.66
TBVpS-3.16
PEG (NY)2.11
PEG (5Y)14.43
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 | 2.15 |
F-Score6
WACC9.01%
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.