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VALVOLINE INC (VVV) Stock Fundamental Analysis

NYSE:VVV - New York Stock Exchange, Inc. - US92047W1018 - Common Stock - Currency: USD

33.915  -0.05 (-0.13%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to VVV. VVV was compared to 120 industry peers in the Specialty Retail industry. VVV scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, VVV is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

8

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.
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.
VVV Yearly Net Income VS EBIT VS OCF VS FCFVVV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

With an excellent Return On Assets value of 11.54%, VVV belongs to the best of the industry, outperforming 85.83% of the companies in the same industry.
VVV has a better Return On Equity (118.02%) than 98.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.64%, VVV is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VVV is below the industry average of 13.00%.
The 3 year average ROIC (9.44%) for VVV is below the current ROIC(12.64%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 11.54%
ROE 118.02%
ROIC 12.64%
ROA(3y)23.41%
ROA(5y)18.75%
ROE(3y)317.01%
ROE(5y)N/A
ROIC(3y)9.44%
ROIC(5y)7.69%
VVV Yearly ROA, ROE, ROICVVV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 400 -400 600

1.3 Margins

The Profit Margin of VVV (16.34%) is better than 97.50% of its industry peers.
In the last couple of years the Profit Margin of VVV has grown nicely.
The Operating Margin of VVV (19.49%) is better than 96.67% of its industry peers.
VVV's Operating Margin has improved in the last couple of years.
VVV's Gross Margin of 38.37% is in line compared to the rest of the industry. VVV outperforms 55.83% of its industry peers.
In the last couple of years the Gross Margin of VVV has grown nicely.
Industry RankSector Rank
OM 19.49%
PM (TTM) 16.34%
GM 38.37%
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%
VVV Yearly Profit, Operating, Gross MarginsVVV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

3

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.
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.
Compared to 1 year ago, VVV has an improved debt to assets ratio.
VVV Yearly Shares OutstandingVVV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
VVV Yearly Total Debt VS Total AssetsVVV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

VVV has an Altman-Z score of 2.44. 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 (2.44) which is in line with its industry peers.
The Debt to FCF ratio of VVV is 20.38, which is on the high side as it means it would take VVV, 20.38 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 20.38, VVV is in line with its industry, outperforming 45.00% of the companies in the same industry.
VVV has a Debt/Equity ratio of 4.39. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VVV (4.39) is worse than 79.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.39
Debt/FCF 20.38
Altman-Z 2.44
ROIC/WACC1.35
WACC9.4%
VVV Yearly LT Debt VS Equity VS FCFVVV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

2.3 Liquidity

VVV has a Current 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's Current ratio of 0.70 is on the low side compared to the rest of the industry. VVV is outperformed by 89.17% of its industry peers.
A Quick Ratio of 0.58 indicates that VVV may have some problems paying its short term obligations.
With a Quick ratio value of 0.58, VVV perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.58
VVV Yearly Current Assets VS Current LiabilitesVVV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

4

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.
The Revenue has grown by 12.16% in the past year. This is quite good.
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)12.16%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%3.73%

3.2 Future

Based on estimates for the next years, VVV will show a small growth in Earnings Per Share. The EPS will grow by 7.69% on average per year.
The Revenue is expected to grow by 6.83% on average over the next years.
EPS Next Y3.28%
EPS Next 2Y10.4%
EPS Next 3Y7.69%
EPS Next 5YN/A
Revenue Next Year5.82%
Revenue Next 2Y10.28%
Revenue Next 3Y6.83%
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.
VVV Yearly Revenue VS EstimatesVVV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
VVV Yearly EPS VS EstimatesVVV Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.60, VVV is valued on the expensive side.
VVV's Price/Earnings ratio is a bit cheaper when compared to the industry. VVV is cheaper than 64.17% of the companies in the same industry.
VVV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.72, the valuation of VVV can be described as rather expensive.
VVV's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.77, VVV is valued at the same level.
Industry RankSector Rank
PE 21.6
Fwd PE 17.72
VVV Price Earnings VS Forward Price EarningsVVV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

VVV's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as VVV.
Industry RankSector Rank
P/FCF 85.03
EV/EBITDA 12.22
VVV Per share dataVVV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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.
VVV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.58
PEG (5Y)8.76
EPS Next 2Y10.4%
EPS Next 3Y7.69%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.43%, VVV has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.28, VVV pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, VVV's dividend is way lower than the S&P500 average.
Industry RankSector 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
VVV Yearly Dividends per shareVVV Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

DP0%
EPS Next 2Y10.4%
EPS Next 3Y7.69%
VVV Yearly Income VS Free CF VS DividendVVV Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

VALVOLINE INC

NYSE:VVV (5/27/2025, 2:38:38 PM)

33.915

-0.05 (-0.13%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-05 2025-08-05/bmo
Inst Owners101.71%
Inst Owner Change5.4%
Ins Owners0.26%
Ins Owner Change0.84%
Market Cap4.31B
Analysts75.79
Price Target43.95 (29.59%)
Short Float %5.57%
Short Ratio4.09
Dividend
Industry RankSector 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)2
Avg EPS beat(2)6.89%
Min EPS beat(2)6.05%
Max EPS beat(2)7.74%
EPS beat(4)3
Avg EPS beat(4)3.1%
Min EPS beat(4)-6.2%
Max EPS beat(4)7.74%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)6
Avg EPS beat(12)-0.93%
EPS beat(16)10
Avg EPS beat(16)2.7%
Revenue beat(2)1
Avg Revenue beat(2)1.1%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)2.56%
Revenue beat(4)1
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-1.88%
Max Revenue beat(4)2.56%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)2
Avg Revenue beat(12)-16.39%
Revenue beat(16)4
Avg Revenue beat(16)-30.26%
PT rev (1m)-1.98%
PT rev (3m)-2.91%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-0.32%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-2.21%
Revenue NY rev (3m)-0.52%
Valuation
Industry RankSector Rank
PE 21.6
Fwd PE 17.72
P/S 2.6
P/FCF 85.03
P/OCF 15.05
P/B 18.76
P/tB N/A
EV/EBITDA 12.22
EPS(TTM)1.57
EY4.63%
EPS(NY)1.91
Fwd EY5.64%
FCF(TTM)0.4
FCFY1.18%
OCF(TTM)2.25
OCFY6.64%
SpS13.06
BVpS1.81
TBVpS-3.62
PEG (NY)6.58
PEG (5Y)8.76
Profitability
Industry RankSector Rank
ROA 11.54%
ROE 118.02%
ROCE 15.81%
ROIC 12.64%
ROICexc 13.03%
ROICexgc 19.95%
OM 19.49%
PM (TTM) 16.34%
GM 38.37%
FCFM 3.05%
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 Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 4.39
Debt/FCF 20.38
Debt/EBITDA 2.33
Cap/Depr 215.65%
Cap/Sales 14.2%
Interest Coverage 250
Cash Conversion 66.17%
Profit Quality 18.69%
Current Ratio 0.7
Quick Ratio 0.58
Altman-Z 2.44
F-Score7
WACC9.4%
ROIC/WACC1.35
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 Y3.28%
EPS Next 2Y10.4%
EPS Next 3Y7.69%
EPS Next 5YN/A
Revenue 1Y (TTM)12.16%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%3.73%
Revenue Next Year5.82%
Revenue Next 2Y10.28%
Revenue Next 3Y6.83%
Revenue Next 5YN/A
EBIT growth 1Y12.52%
EBIT growth 3Y14.61%
EBIT growth 5Y-3.86%
EBIT Next Year38.61%
EBIT Next 3Y17.36%
EBIT Next 5YN/A
FCF growth 1Y-52.44%
FCF growth 3Y-46.11%
FCF growth 5Y-28.45%
OCF growth 1Y17.62%
OCF growth 3Y-13.1%
OCF growth 5Y-3.99%