VALVOLINE INC (VVV) Stock Fundamental Analysis
NYSE:VVV - New York Stock Exchange, Inc. - US92047W1018 - Common Stock - Currency: USD
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.39 | ||
| Debt/FCF | 20.38 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.35
WACC9.4%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.58 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 17.72 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.03 | ||
| EV/EBITDA | 12.22 |
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%
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 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 2Y10.4%
EPS Next 3Y7.69%
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)
Earnings (Next)
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 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)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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%