VALVOLINE INC (VVV) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VVV - US92047W1018 - Common Stock
30.42 USD
+0.37 (+1.23%)
30.42 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. While VVV has a great profitability rating, there are quite some 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
VVV had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 7.89%, VVV belongs to the top of the industry, outperforming 81.15% of the companies in the same industry.
VVV has a Return On Equity of 62.25%. This is amongst the best in the industry. VVV outperforms 96.72% of its industry peers.
With a decent Return On Invested Capital value of 10.18%, VVV is doing good in the industry, outperforming 75.41% of the companies in the same industry.
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 12.16%.
| 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 93.44% of its industry peers.
VVV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.55%, VVV belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
In the last couple of years the Operating Margin of VVV has grown nicely.
Looking at the Gross Margin, with a value of 38.50%, VVV is in line with its industry, outperforming 57.38% 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 | 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.
VVV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VVV has less shares outstanding
VVV has a better debt/assets ratio than last year.
2.2 Solvency
VVV has an Altman-Z score of 2.11. 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 has a Altman-Z score (2.11) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of VVV (34.30) 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.
The Debt to Equity ratio of VVV (3.78) is worse than 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.78 | ||
| Debt/FCF | 34.3 | ||
| Altman-Z | 2.11 |
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.
With a Current ratio value of 0.70, VVV is not doing good in the industry: 89.34% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.58, VVV is in line with its industry, outperforming 54.92% of the companies in the same industry.
| 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.
Looking at the last year, VVV shows a small growth in Revenue. The Revenue has grown by 5.64% in the last year.
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)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
The Earnings Per Share is expected to grow by 14.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.39% on average over the next years. This is quite good.
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
VVV is valuated rather expensively with a Price/Earnings ratio of 19.25.
Based on the Price/Earnings ratio, VVV is valued a bit cheaper than 75.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of VVV to the average of the S&P500 Index (26.26), we can say VVV is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.66 indicates a rather expensive valuation of VVV.
VVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VVV is cheaper than 65.57% of the companies in the same industry.
VVV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.25 | ||
| Fwd PE | 17.66 |
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 | 101.79 | ||
| EV/EBITDA | 11.62 |
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.
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)2.14
PEG (5Y)14.63
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.
The stock price of VVV dropped by -21.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.84, VVV pays a bit more dividend than its industry peers.
VVV's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| 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%
30.42
+0.37 (+1.23%)
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 Cap3.87B
Revenue(TTM)1.71B
Net Income(TTM)210.70M
Analysts76.84
Price Target39.94 (31.3%)
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)-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 | 19.25 | ||
| Fwd PE | 17.66 | ||
| P/S | 2.26 | ||
| P/FCF | 101.79 | ||
| P/OCF | 13.02 | ||
| P/B | 11.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.62 |
EPS(TTM)1.58
EY5.19%
EPS(NY)1.72
Fwd EY5.66%
FCF(TTM)0.3
FCFY0.98%
OCF(TTM)2.34
OCFY7.68%
SpS13.45
BVpS2.66
TBVpS-3.16
PEG (NY)2.14
PEG (5Y)14.63
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 | 2.11 |
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.