VALVOLINE INC (VVV) Stock Fundamental Analysis
NYSE:VVV - New York Stock Exchange, Inc. - US92047W1018 - Common Stock - Currency: USD
Overall VVV gets a fundamental rating of 5 out of 10. We evaluated VVV against 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. While showing a medium growth rate, VVV is valued expensive at the moment.
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.
Each year in the past 5 years VVV has been profitable.
Of the past 5 years VVV 4 years had a positive operating cash flow.
1.2 Ratios
VVV has a Return On Assets of 10.90%. This is amongst the best in the industry. VVV outperforms 85.37% of its industry peers.
The Return On Equity of VVV (107.52%) is better than 99.19% of its industry peers.
VVV has a better Return On Invested Capital (11.74%) than 80.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VVV is below the industry average of 12.05%.
The last Return On Invested Capital (11.74%) for VVV is above the 3 year average (9.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 107.52% | ||
| ROIC | 11.74% |
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
VVV has a Profit Margin of 15.97%. This is amongst the best in the industry. VVV outperforms 96.75% of its industry peers.
VVV's Profit Margin has improved in the last couple of years.
VVV has a better Operating Margin (18.74%) than 95.94% of its industry peers.
VVV's Operating Margin has improved in the last couple of years.
VVV's Gross Margin of 38.29% is in line compared to the rest of the industry. VVV outperforms 57.72% of its industry peers.
In the last couple of years the Gross Margin of VVV has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.74% | ||
| PM (TTM) | 15.97% | ||
| GM | 38.29% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VVV is creating some value.
Compared to 1 year ago, VVV has less shares outstanding
VVV has less shares outstanding than it did 5 years ago.
VVV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.38 indicates that VVV is not a great score, but indicates only limited risk for bankruptcy at the moment.
VVV has a Altman-Z score (2.38) which is in line with its industry peers.
The Debt to FCF ratio of VVV is 47.39, which is on the high side as it means it would take VVV, 47.39 years of fcf income to pay off all of its debts.
VVV has a Debt to FCF ratio (47.39) which is in line with its industry peers.
A Debt/Equity ratio of 4.23 is on the high side and indicates that VVV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.23, VVV is doing worse than 77.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 47.39 | ||
| Altman-Z | 2.38 |
ROIC/WACC1.39
WACC8.44%
2.3 Liquidity
A Current Ratio of 0.73 indicates that VVV may have some problems paying 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 87.80% of its industry peers.
VVV has a Quick 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 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
The Earnings Per Share has been growing slightly by 6.08% over the past year.
VVV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.47% yearly.
VVV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.56%.
Measured over the past years, VVV shows a decrease in Revenue. The Revenue has been decreasing by -7.49% on average per year.
EPS 1Y (TTM)6.08%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%-8.11%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%3.73%
3.2 Future
VVV is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.69% yearly.
VVV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
EPS Next Y2.4%
EPS Next 2Y9.77%
EPS Next 3Y7.69%
EPS Next 5YN/A
Revenue Next Year5.76%
Revenue Next 2Y10.47%
Revenue Next 3Y6.79%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.41 indicates a rather expensive valuation of VVV.
Based on the Price/Earnings ratio, VVV is valued a bit cheaper than 67.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, VVV is valued at the same level.
VVV is valuated rather expensively with a Price/Forward Earnings ratio of 18.60.
The rest of the industry has a similar Price/Forward Earnings ratio as VVV.
VVV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 18.6 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 196.99 | ||
| EV/EBITDA | 12.83 |
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 excellent profitability rating of VVV may justify a higher PE ratio.
PEG (NY)9.35
PEG (5Y)9.09
EPS Next 2Y9.77%
EPS Next 3Y7.69%
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 5.04.
Compared to an average S&P500 Dividend Yield of 2.39, VVV's dividend is way lower than the S&P500 average.
| 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 2Y9.77%
EPS Next 3Y7.69%
NYSE:VVV (8/4/2025, 2:54:07 PM)
35.18
+0.16 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.35%
Inst Owner Change0.18%
Ins Owners0.26%
Ins Owner Change-0.22%
Market Cap4.47B
Analysts77.89
Price Target43.86 (24.67%)
Short Float %8.02%
Short Ratio5.48
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)-0.35%
Min EPS beat(2)-6.75%
Max EPS beat(2)6.05%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-6.75%
Max EPS beat(4)7.74%
EPS beat(8)4
Avg EPS beat(8)2.2%
EPS beat(12)6
Avg EPS beat(12)-1.05%
EPS beat(16)9
Avg EPS beat(16)0.81%
Revenue beat(2)1
Avg Revenue beat(2)0.55%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)2.56%
Revenue beat(4)1
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)2.56%
Revenue beat(8)2
Avg Revenue beat(8)-0.55%
Revenue beat(12)2
Avg Revenue beat(12)-10.93%
Revenue beat(16)3
Avg Revenue beat(16)-30.69%
PT rev (1m)0.98%
PT rev (3m)-1.43%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 18.6 | ||
| P/S | 2.67 | ||
| P/FCF | 196.99 | ||
| P/OCF | 16.86 | ||
| P/B | 17.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.83 |
EPS(TTM)1.57
EY4.46%
EPS(NY)1.89
Fwd EY5.38%
FCF(TTM)0.18
FCFY0.51%
OCF(TTM)2.09
OCFY5.93%
SpS13.17
BVpS1.96
TBVpS-3.48
PEG (NY)9.35
PEG (5Y)9.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.9% | ||
| ROE | 107.52% | ||
| ROCE | 14.68% | ||
| ROIC | 11.74% | ||
| ROICexc | 12.09% | ||
| ROICexgc | 18.13% | ||
| OM | 18.74% | ||
| PM (TTM) | 15.97% | ||
| GM | 38.29% | ||
| FCFM | 1.36% |
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%
ROICexcg growth 3Y28.72%
ROICexcg 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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.23 | ||
| Debt/FCF | 47.39 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 216.41% | ||
| Cap/Sales | 14.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.29% | ||
| Profit Quality | 8.49% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.38 |
F-Score7
WACC8.44%
ROIC/WACC1.39
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)6.08%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%-8.11%
EPS Next Y2.4%
EPS Next 2Y9.77%
EPS Next 3Y7.69%
EPS Next 5YN/A
Revenue 1Y (TTM)9.56%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%3.73%
Revenue Next Year5.76%
Revenue Next 2Y10.47%
Revenue Next 3Y6.79%
Revenue Next 5YN/A
EBIT growth 1Y5.55%
EBIT growth 3Y14.61%
EBIT growth 5Y-3.86%
EBIT Next Year38.61%
EBIT Next 3Y17.36%
EBIT Next 5YN/A
FCF growth 1Y-85.25%
FCF growth 3Y-46.11%
FCF growth 5Y-28.45%
OCF growth 1Y-11.06%
OCF growth 3Y-13.1%
OCF growth 5Y-3.99%