VALVOLINE INC (VVV) Stock Fundamental Analysis
USA - NYSE:VVV - US92047W1018 - Common Stock
34.96 USD
-0.8 (-2.24%)
34.96 USD
0 (0%)
VVV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year VVV was profitable.
In the past year VVV had a positive cash flow from operations.
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
VVV has a better Return On Assets (10.85%) than 86.89% of its industry peers.
The Return On Equity of VVV (88.65%) is better than 99.18% of its industry peers.
The Return On Invested Capital of VVV (11.30%) is better than 79.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VVV is below the industry average of 11.64%.
The 3 year average ROIC (9.44%) for VVV is below the current ROIC(11.30%), indicating increased profibility in the last year.
| 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 98.36% of the companies in the same industry.
In the last couple of years the Profit Margin of VVV has grown nicely.
VVV has a Operating Margin of 18.65%. This is amongst the best in the industry. VVV outperforms 96.72% of its industry peers.
In the last couple of years the Operating Margin of VVV has grown nicely.
VVV has a Gross Margin of 38.49%. This is comparable to the rest of the industry: VVV outperforms 56.56% of 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.
Compared to 1 year ago, VVV has less shares outstanding
Compared to 5 years ago, VVV has less shares outstanding
The debt/assets ratio for VVV has been reduced compared to a year ago.
2.2 Solvency
VVV has an Altman-Z score of 2.37. 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 of 2.37. This is comparable to the rest of the industry: VVV outperforms 51.64% of its industry peers.
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.
The Debt to FCF ratio of VVV (24.05) 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.
VVV has a Debt to Equity ratio of 3.37. This is in the lower half of the industry: VVV underperforms 76.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.37 | ||
| Debt/FCF | 24.05 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.23
WACC9.17%
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 87.70% of its industry peers.
A Quick Ratio of 0.60 indicates that VVV may have some problems paying its short term obligations.
VVV has a Quick ratio of 0.60. This is comparable to the rest of the industry: VVV outperforms 59.84% of its industry peers.
| 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 6.00% 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 small growth in Revenue. The Revenue has grown by 7.53% in the last year.
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%
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 13.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.75% on average over the next years. This is quite good.
EPS Next Y3.87%
EPS Next 2Y10.49%
EPS Next 3Y13.65%
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y10.03%
Revenue Next 3Y10.75%
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 21.99, VVV is valued on the expensive side.
Based on the Price/Earnings ratio, VVV is valued a bit cheaper than the industry average as 69.67% of the companies are valued more expensively.
VVV is valuated rather cheaply when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.24, the valuation of VVV can be described as rather expensive.
Based on the Price/Forward Earnings ratio, VVV is valued a bit cheaper than 63.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.36. VVV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.24 |
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 | 98.97 | ||
| EV/EBITDA | 12.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VVV has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VVV's earnings are expected to grow with 13.65% in the coming years.
PEG (NY)5.68
PEG (5Y)8.92
EPS Next 2Y10.49%
EPS Next 3Y13.65%
5. Dividend
5.1 Amount
VVV has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
VVV's Dividend Yield is a higher than the industry average which is at 5.68.
With a Dividend Yield of 1.43, VVV pays less dividend than the S&P500 average, which is at 2.44.
| 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 2Y10.49%
EPS Next 3Y13.65%
34.96
-0.8 (-2.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.84%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change1.93%
Market Cap4.44B
Analysts76.84
Price Target45.6 (30.43%)
Short Float %8.76%
Short Ratio6.5
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)1.13%
PT rev (3m)4.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.99 | ||
| Fwd PE | 18.24 | ||
| P/S | 2.63 | ||
| P/FCF | 98.97 | ||
| P/OCF | 16.07 | ||
| P/B | 14.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.89 |
EPS(TTM)1.59
EY4.55%
EPS(NY)1.92
Fwd EY5.48%
FCF(TTM)0.35
FCFY1.01%
OCF(TTM)2.18
OCFY6.22%
SpS13.31
BVpS2.47
TBVpS-3.14
PEG (NY)5.68
PEG (5Y)8.92
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%
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 Turnover0.66
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 | 2.37 |
F-Score7
WACC9.17%
ROIC/WACC1.23
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 Y3.87%
EPS Next 2Y10.49%
EPS Next 3Y13.65%
EPS Next 5YN/A
Revenue 1Y (TTM)7.53%
Revenue growth 3Y16%
Revenue growth 5Y-7.49%
Sales Q2Q%4.18%
Revenue Next Year5.94%
Revenue Next 2Y10.03%
Revenue Next 3Y10.75%
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%