Valvoline
Market Cap
US$4.5b
Last Updated
2021/02/24 23:26 UTC
Data Sources
Company Financials +
Executive Summary
Valvoline Inc. manufactures, markets, and supplies, engine and automotive maintenance products and services. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record and fair value.
Similar Companies
Share Price & News
How has Valvoline's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VVV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: VVV's weekly volatility has decreased from 9% to 3% over the past year.
Market Performance
7 Day Return
3.4%
VVV
2.1%
US Chemicals
-1.4%
US Market
1 Year Return
24.0%
VVV
33.2%
US Chemicals
37.1%
US Market
Return vs Industry: VVV underperformed the US Chemicals industry which returned 31.6% over the past year.
Return vs Market: VVV underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| VVV | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | 2.1% | -1.4% |
| 30 Day | 1.4% | 2.3% | 1.6% |
| 90 Day | 9.7% | 6.9% | 7.3% |
| 1 Year | 26.8%24.0% | 36.4%33.2% | 40.2%37.1% |
| 3 Year | 16.5%10.2% | 35.9%15.1% | 62.5%52.1% |
| 5 Year | n/a | 104.4%63.6% | 133.9%108.0% |
Long-Term Price Volatility Vs. Market
How volatile is Valvoline's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Valvoline Inc. (NYSE:VVV) Passed Our Checks, And It's About To Pay A US$0.13 Dividend1 week ago | Simply Wall St
With EPS Growth And More, Valvoline (NYSE:VVV) Is Interesting3 weeks ago | Simply Wall St
Valvoline Inc. (NYSE:VVV) Vies For A Place In Your Dividend Portfolio: Here's WhyValuation
Is Valvoline undervalued compared to its fair value and its price relative to the market?
15.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VVV ($25.24) is trading below our estimate of fair value ($29.81)
Significantly Below Fair Value: VVV is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: VVV is good value based on its PE Ratio (14.2x) compared to the US Chemicals industry average (28.2x).
PE vs Market: VVV is good value based on its PE Ratio (14.2x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: VVV is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: VVV has negative assets, so we can't compare its PB Ratio to the US Chemicals industry average.
Next Steps
Future Growth
How is Valvoline forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
6.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VVV's forecast earnings growth (6.2% per year) is above the savings rate (2%).
Earnings vs Market: VVV's earnings (6.2% per year) are forecast to grow slower than the US market (20.4% per year).
High Growth Earnings: VVV's earnings are forecast to grow, but not significantly.
Revenue vs Market: VVV's revenue (6.5% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: VVV's revenue (6.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VVV's Return on Equity is forecast to be very high in 3 years time (111.9%).
Next Steps
Past Performance
How has Valvoline performed over the past 5 years?
0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VVV has high quality earnings.
Growing Profit Margin: VVV's current net profit margins (13.8%) are higher than last year (9.3%).
Past Earnings Growth Analysis
Earnings Trend: VVV's earnings have grown by 0.6% per year over the past 5 years.
Accelerating Growth: VVV's earnings growth over the past year (45.2%) exceeds its 5-year average (0.6% per year).
Earnings vs Industry: VVV earnings growth over the past year (45.2%) exceeded the Chemicals industry -3.4%.
Return on Equity
High ROE: VVV's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
Financial Health
How is Valvoline's financial position?
Financial Position Analysis
Short Term Liabilities: VVV has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: VVV has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: VVV has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: VVV's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: VVV's debt is not well covered by operating cash flow (19.8%).
Interest Coverage: VVV's interest payments on its debt are well covered by EBIT (7.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Valvoline current dividend yield, its reliability and sustainability?
1.98%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VVV's dividend (1.98%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: VVV's dividend (1.98%) is low compared to the top 25% of dividend payers in the US market (3.75%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, VVV has been paying a dividend for less than 10 years.
Growing Dividend: VVV's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.1%), VVV's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VVV's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Sam Mitchell (58 yo)
4.42yrs
Tenure
US$5,419,778
Compensation
Mr. Samuel J. Mitchell Jr., also known as Sam, has been the Chief Executive Officer of Valvoline Inc. since September 2016. He has been a Director of Valvoline Inc. since May 2016. Mr. Mitchell serves as t...
CEO Compensation Analysis
Compensation vs Market: Sam's total compensation ($USD5.42M) is about average for companies of similar size in the US market ($USD4.96M).
Compensation vs Earnings: Sam's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.42yrs | US$5.42m | 0.14% $ 6.1m | |
| Chief Financial Officer | 4.67yrs | US$2.03m | 0.033% $ 1.5m | |
| Senior VP | 4.42yrs | US$1.14m | 0.0055% $ 244.9k | |
| Senior VP & Chief Supply Chain Officer | 4.42yrs | US$1.01m | 0.011% $ 480.4k | |
| Senior VP & President of QuickLubes | 4.42yrs | US$1.18m | 0.0025% $ 109.5k | |
| Chief Accounting Officer & Controller | 1.42yrs | no data | 0.00043% $ 19.1k | |
| VP of Investor Relations | no data | no data | no data | |
| Senior Director of Corporate Communications | no data | no data | no data | |
| Senior VP & Chief Marketing Officer | 4.42yrs | US$655.79k | 0.014% $ 614.8k | |
| Senior VP & Chief People Officer | 0.83yr | no data | 0.00091% $ 40.5k | |
| Senior Vice President of Core North America | 4.42yrs | no data | 0.0071% $ 315.2k | |
| Senior Vice President of International | 1.92yrs | no data | 0.0021% $ 91.3k |
4.4yrs
Average Tenure
54.5yo
Average Age
Experienced Management: VVV's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.42yrs | US$5.42m | 0.14% $ 6.1m | |
| Independent Non-Executive Chairman | 3.33yrs | US$250.02k | 0.0065% $ 290.3k | |
| Independent Director | 4.42yrs | US$210.02k | 0.0060% $ 268.9k | |
| Independent Director | 4.42yrs | US$210.02k | 0.0055% $ 246.6k | |
| Independent Director | 4.42yrs | US$230.02k | 0.0066% $ 292.9k | |
| Independent Director | 4.42yrs | US$225.02k | 0.0055% $ 244.0k | |
| Independent Director | 1.17yrs | US$212.15k | 0% $ 0 | |
| Independent Director | 4.42yrs | US$225.02k | 0.0029% $ 127.3k | |
| Independent Director | 2.17yrs | US$210.02k | 0% $ 0 |
4.4yrs
Average Tenure
59yo
Average Age
Experienced Board: VVV's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Valvoline Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Valvoline Inc.
- Ticker: VVV
- Exchange: NYSE
- Founded: 1866
- Industry: Commodity Chemicals
- Sector: Materials
- Market Cap: US$4.452b
- Shares outstanding: 181.42m
- Website: https://www.valvoline.com
Number of Employees
Location
- Valvoline Inc.
- 100 Valvoline Way
- Lexington
- Kentucky
- 40509
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VVV | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 2016 |
| 0V4 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 2016 |
Biography
Valvoline Inc. manufactures, markets, and supplies, engine and automotive maintenance products and services. It operates through three segments: Quick Lubes, Core North America, and International. The comp...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/24 23:26 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.