VALVOLINE INC (VVV) Stock Fundamental Analysis
USA - NYSE:VVV - US92047W1018 - Common Stock
31.21 USD
+1.02 (+3.38%)
31.21 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 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.
VVV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of VVV (10.85%) is better than 86.07% of its industry peers.
VVV has a Return On Equity of 88.65%. This is amongst the best in the industry. VVV outperforms 99.18% of its industry peers.
With a decent Return On Invested Capital value of 11.30%, VVV is doing good in the industry, outperforming 78.69% of the companies in the same industry.
VVV had an Average Return On Invested Capital over the past 3 years of 9.44%. This is below the industry average of 11.69%.
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
VVV has a better Profit Margin (16.43%) than 97.54% of its industry peers.
VVV's Profit Margin has improved in the last couple of years.
VVV has a Operating Margin of 18.65%. This is amongst the best in the industry. VVV outperforms 95.08% of its industry peers.
In the last couple of years the Operating Margin of VVV has grown nicely.
VVV has a Gross Margin (38.49%) which is in line with its industry peers.
In the last couple of years the Gross Margin of VVV has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VVV is 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
VVV has an Altman-Z score of 2.19. 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 2.19 is in line compared to the rest of the industry. VVV outperforms 52.46% of its industry peers.
VVV has a debt to FCF ratio of 24.05. This is a negative value and a sign of low solvency as VVV would need 24.05 years to pay back of all of its debts.
VVV's Debt to FCF ratio of 24.05 is in line compared to the rest of the industry. VVV outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 3.37 is on the high side and indicates that VVV has dependencies on debt financing.
With a Debt to Equity ratio value of 3.37, VVV is not doing good in the industry: 75.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.37 | ||
| Debt/FCF | 24.05 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.27
WACC8.88%
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.
The Quick ratio of VVV (0.60) is comparable to the rest of the industry.
| 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 0.64% 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.
Looking at the last year, VVV shows a quite strong growth in Revenue. The Revenue has grown by 12.16% in the last year.
The Revenue has been decreasing by -7.49% on average over the past years.
EPS 1Y (TTM)0.64%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%-2.17%
Revenue 1Y (TTM)12.16%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%4.2%
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
Based on the Price/Earnings ratio of 19.75, the valuation of VVV can be described as rather expensive.
70.49% of the companies in the same industry are more expensive than VVV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.45. VVV is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.37 indicates a correct valuation of VVV.
VVV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VVV is cheaper than 61.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VVV to the average of the S&P500 Index (34.46), we can say VVV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.37 |
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 | 88.35 | ||
| EV/EBITDA | 11.25 |
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 excellent profitability rating of VVV 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
PEG (5Y)8.01
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.
In the last 3 months the price of VVV has falen by -21.68%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VVV's Dividend Yield is a higher than the industry average which is at 5.60.
Compared to an average S&P500 Dividend Yield of 2.45, 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 2Y10.2%
EPS Next 3Y13.35%
31.21
+1.02 (+3.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.84%
Inst Owner Change-2.54%
Ins Owners0.27%
Ins Owner Change1.74%
Market Cap3.97B
Revenue(TTM)1.62B
Net Income(TTM)278.00M
Analysts76.84
Price Target45.43 (45.56%)
Short Float %8.44%
Short Ratio6.1
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)-0.75%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.37 | ||
| P/S | 2.34 | ||
| P/FCF | 88.35 | ||
| P/OCF | 14.34 | ||
| P/B | 12.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.25 |
EPS(TTM)1.58
EY5.06%
EPS(NY)1.91
Fwd EY6.11%
FCF(TTM)0.35
FCFY1.13%
OCF(TTM)2.18
OCFY6.97%
SpS13.31
BVpS2.47
TBVpS-3.14
PEG (NY)5
PEG (5Y)8.01
Graham Number9.37
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 | 2.19 |
F-Score7
WACC8.88%
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)0.64%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%-2.17%
EPS Next Y3.95%
EPS Next 2Y10.2%
EPS Next 3Y13.35%
EPS Next 5YN/A
Revenue 1Y (TTM)12.16%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%4.2%
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 5 / 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.