VALVOLINE INC (VVV)
US92047W1018 - Common Stock
Taking everything into account, VVV scores 4 out of 10 in our fundamental rating. VVV was compared to 126 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VVV was profitable.
In the past year VVV has reported a negative cash flow from operations.
In the past 5 years VVV has always been profitable.
Of the past 5 years VVV 4 years had a positive operating cash flow.
1.2 Ratios
VVV has a better Return On Assets (6.65%) than 71.43% of its industry peers.
Looking at the Return On Equity, with a value of 305.82%, VVV belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
VVV has a Return On Invested Capital of 13.24%. This is amongst the best in the industry. VVV outperforms 80.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VVV is significantly below the industry average of 13.62%.
The 3 year average ROIC (7.56%) for VVV is below the current ROIC(13.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 305.82% | ||
| ROIC | 13.24% |
ROA(3y)24.91%
ROA(5y)19.03%
ROE(3y)383.18%
ROE(5y)N/A
ROIC(3y)7.56%
ROIC(5y)9.03%
1.3 Margins
Looking at the Profit Margin, with a value of 12.03%, VVV belongs to the top of the industry, outperforming 96.03% of the companies in the same industry.
VVV's Profit Margin has improved in the last couple of years.
VVV has a Operating Margin of 19.45%. This is amongst the best in the industry. VVV outperforms 96.83% of its industry peers.
VVV's Operating Margin has improved in the last couple of years.
The Gross Margin of VVV (37.95%) is comparable to the rest of the industry.
VVV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.45% | ||
| PM (TTM) | 12.03% | ||
| GM | 37.95% |
OM growth 3Y4.44%
OM growth 5Y3.34%
PM growth 3Y31.2%
PM growth 5Y68.39%
GM growth 3Y-3.06%
GM growth 5Y1.35%
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.
Compared to 1 year ago, VVV has less shares outstanding
Compared to 5 years ago, VVV has less shares outstanding
Compared to 1 year ago, VVV has a worse debt to assets ratio.
2.2 Solvency
VVV has an Altman-Z score of 2.00. 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 2.00 is in line compared to the rest of the industry. VVV outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 15.83 is on the high side and indicates that VVV has dependencies on debt financing.
VVV has a worse Debt to Equity ratio (15.83) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2 |
ROIC/WACC1.58
WACC8.37%
2.3 Liquidity
A Current Ratio of 0.73 indicates that VVV may have some problems paying its short term obligations.
VVV has a Current ratio of 0.73. This is amonst the worse of the industry: VVV underperforms 94.44% of its industry peers.
A Quick Ratio of 0.69 indicates that VVV may have some problems paying its short term obligations.
VVV has a Quick ratio (0.69) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
VVV shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.13%.
VVV shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.27% yearly.
VVV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.90%.
Measured over the past years, VVV shows a decrease in Revenue. The Revenue has been decreasing by -8.78% on average per year.
EPS 1Y (TTM)-5.13%
EPS 3Y-6.49%
EPS 5Y-1.27%
EPS growth Q2Q60.87%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y25.69%
Revenue growth 5Y-8.78%
Revenue growth Q2Q12.83%
3.2 Future
Based on estimates for the next years, VVV will show a very strong growth in Earnings Per Share. The EPS will grow by 24.73% on average per year.
The Revenue is expected to grow by 14.34% on average over the next years. This is quite good.
EPS Next Y33.14%
EPS Next 2Y28.01%
EPS Next 3Y26.21%
EPS Next 5Y24.73%
Revenue Next Year13.17%
Revenue Next 2Y13.22%
Revenue Next 3Y12.93%
Revenue Next 5Y14.34%
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 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
With a Price/Earnings ratio of 28.28, VVV can be considered very expensive at the moment.
VVV's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VVV to the average of the S&P500 Index (28.56), we can say VVV is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.11, the valuation of VVV can be described as rather expensive.
VVV's Price/Forward Earnings is on the same level as the industry average.
VVV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.28 | ||
| Fwd PE | 21.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VVV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.37 |
4.3 Compensation for Growth
VVV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VVV has a very decent profitability rating, which may justify a higher PE ratio.
VVV's earnings are expected to grow with 26.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y28.01%
EPS Next 3Y26.21%
5. Dividend
5.1 Amount
VVV has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 3.38, VVV pays a bit more dividend than its industry peers.
VVV's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of VVV decreases each year by -13.92%.
VVV has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-13.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y28.01%
EPS Next 3Y26.21%
VALVOLINE INC
NYSE:VVV (5/14/2024, 7:08:27 PM)
After market: 41.86 0 (0%)41.86
+0.04 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.28 | ||
| Fwd PE | 21.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
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SpS
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TBVpS
PEG (NY)0.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.65% | ||
| ROE | 305.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.45% | ||
| PM (TTM) | 12.03% | ||
| GM | 37.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
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ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 15.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
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Profit Quality(3y)
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Growth
EPS 1Y (TTM)-5.13%
EPS 3Y-6.49%
EPS 5Y
EPS growth Q2Q
EPS Next Y33.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.9%
Revenue growth 3Y25.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
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Revenue Next 3Y
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