VALVOLINE INC (VVV) Stock Fundamental Analysis
USA - NYSE:VVV - US92047W1018 - Common Stock
33.71 USD
-0.12 (-0.35%)
33.71 USD
0 (0%)
Taking everything into account, VVV scores 5 out of 10 in our fundamental rating. VVV was compared to 121 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 decent growth rate and is not valued too expensively.
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
With an excellent Return On Assets value of 10.85%, VVV belongs to the best of the industry, outperforming 85.95% of the companies in the same industry.
Looking at the Return On Equity, with a value of 88.65%, VVV belongs to the top of the industry, outperforming 99.17% of the companies in the same industry.
With a decent Return On Invested Capital value of 11.30%, VVV is doing good in the industry, outperforming 78.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VVV is below the industry average of 11.83%.
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
With an excellent Profit Margin value of 16.43%, VVV belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
In the last couple of years the Profit Margin of VVV has grown nicely.
Looking at the Operating Margin, with a value of 18.65%, VVV belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
VVV's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.49%, VVV is in line with its industry, outperforming 57.85% of the companies in the same industry.
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
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.
The number of shares outstanding for VVV has been reduced compared to 5 years ago.
Compared to 1 year ago, VVV has an improved debt to assets ratio.
2.2 Solvency
VVV has an Altman-Z score of 2.31. 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 (2.31) which is comparable to the rest of the industry.
The Debt to FCF ratio of VVV is 24.05, which is on the high side as it means it would take VVV, 24.05 years of fcf income to pay off all of its debts.
VVV has a Debt to FCF ratio (24.05) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.37 is on the high side and indicates that VVV has dependencies on debt financing.
The Debt to Equity ratio of VVV (3.37) is worse than 76.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.37 | ||
| Debt/FCF | 24.05 | ||
| Altman-Z | 2.31 |
ROIC/WACC1.25
WACC9.03%
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 89.26% of its industry peers.
A Quick Ratio of 0.60 indicates that VVV may have some problems paying its short term obligations.
VVV's Quick ratio of 0.60 is in line compared to the rest of the industry. VVV outperforms 57.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
VVV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.00%.
The Earnings Per Share has been growing slightly by 2.47% on average over the past years.
The Revenue has been growing slightly by 7.53% in the past year.
VVV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.49% yearly.
EPS 1Y (TTM)6%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%4.44%
Revenue 1Y (TTM)7.53%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%4.18%
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 2Y10.22%
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.
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 21.20 indicates a rather expensive valuation of VVV.
69.42% of the companies in the same industry are more expensive than VVV, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.89, VVV is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.67 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 63.64% of the companies in the same industry.
VVV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 17.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VVV.
The rest of the industry has a similar Price/Free Cash Flow ratio as VVV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.43 | ||
| EV/EBITDA | 12.29 |
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.
A more expensive valuation may be justified as VVV's earnings are expected to grow with 13.35% in the coming years.
PEG (NY)5.37
PEG (5Y)8.6
EPS Next 2Y10.22%
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.
Compared to an average industry Dividend Yield of 5.23, VVV pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.31, VVV is paying slightly less dividend.
| 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 2Y10.22%
EPS Next 3Y13.35%
33.71
-0.12 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.84%
Inst Owner Change-0.11%
Ins Owners0.27%
Ins Owner Change1.93%
Market Cap4.28B
Revenue(TTM)1.69B
Net Income(TTM)278.00M
Analysts76.84
Price Target45.6 (35.27%)
Short Float %8.6%
Short Ratio6.84
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%
PT rev (3m)3.97%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0.07%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 17.67 | ||
| P/S | 2.53 | ||
| P/FCF | 95.43 | ||
| P/OCF | 15.49 | ||
| P/B | 13.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.29 |
EPS(TTM)1.59
EY4.72%
EPS(NY)1.91
Fwd EY5.66%
FCF(TTM)0.35
FCFY1.05%
OCF(TTM)2.18
OCFY6.46%
SpS13.31
BVpS2.47
TBVpS-3.14
PEG (NY)5.37
PEG (5Y)8.6
Graham Number9.39
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 | 2.31 |
F-Score7
WACC9.03%
ROIC/WACC1.25
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%
EPS 3Y-6.49%
EPS 5Y2.47%
EPS Q2Q%4.44%
EPS Next Y3.95%
EPS Next 2Y10.22%
EPS Next 3Y13.35%
EPS Next 5YN/A
Revenue 1Y (TTM)7.53%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%4.18%
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 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 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.