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VVV

ValvolineNYSE:VVV Stock Report

Last Price

US$33.78

Market Cap

US$6.1b

7D

-6.2%

1Y

34.7%

Updated

21 Jan, 2022

Data

Company Financials +
VVV fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health4/6
Dividends3/6

VVV Stock Overview

Valvoline Inc. manufactures, markets, and supplies, engine and automotive maintenance products and services.

Valvoline Competitors

Exxon Mobil

NYSE:XOM

US$310.2b

Royal Dutch Shell

ENXTAM:RDSA

€168.8b

PetroChina

SEHK:857

HK$1.2t

BP

LSE:BP.

UK£76.3b

Price History & Performance

Summary of all time highs, changes and price drops for Valvoline
Historical stock prices
Current Share PriceUS$33.78
52 Week HighUS$37.97
52 Week LowUS$23.40
Beta1.36
1 Month Change-5.54%
3 Month Change-4.25%
1 Year Change34.69%
3 Year Change56.03%
5 Year Change50.20%
Change since IPO46.23%

Recent News & Updates

Jan 18
Valvoline Inc. (NYSE:VVV) Shares Could Be 29% Below Their Intrinsic Value Estimate

Valvoline Inc. (NYSE:VVV) Shares Could Be 29% Below Their Intrinsic Value Estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Valvoline Inc...

Jan 03
Is Now An Opportune Moment To Examine Valvoline Inc. (NYSE:VVV)?

Is Now An Opportune Moment To Examine Valvoline Inc. (NYSE:VVV)?

Valvoline Inc. ( NYSE:VVV ), is not the largest company out there, but it saw a double-digit share price rise of over...

Nov 23

Valvoline: A Great Company With A Strong Catalyst

Valvoline has managed to perform really well in recent years, with both revenue and profits rising at a nice clip. Shares are also priced attractively at this point in time, but the business has another catalyst to propel value higher. Management's decision to split the firm in two could result in nice upside for investors in the near future.

Shareholder Returns

VVVUS ChemicalsUS Market
7D-6.2%-3.5%-4.6%
1Y34.7%12.0%7.7%

Return vs Industry: VVV exceeded the US Chemicals industry which returned 13% over the past year.

Return vs Market: VVV exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is VVV's price volatile compared to industry and market?
VVV volatility
VVV Average Weekly Movement3.4%
Chemicals Industry Average Movement5.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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 (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18669,800Sam Mitchellhttps://www.valvoline.com

Valvoline Inc. manufactures, markets, and supplies, engine and automotive maintenance products and services. It operates through two segments, Retail Services and Global Products. The company offers lubricants for passenger car, light duty, and heavy duty; antifreeze/coolants for original equipment manufacturers; functional and maintenance chemicals, such as brake fluids and power steering fluids, as well as specialty coatings for automotive and industrial applications; and oil and air filters for light-duty vehicles.

Valvoline Fundamentals Summary

How do Valvoline's earnings and revenue compare to its market cap?
VVV fundamental statistics
Market CapUS$6.08b
Earnings (TTM)US$420.00m
Revenue (TTM)US$2.98b

14.5x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VVV income statement (TTM)
RevenueUS$2.98b
Cost of RevenueUS$2.00b
Gross ProfitUS$980.00m
ExpensesUS$560.00m
EarningsUS$420.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 08, 2022

Earnings per share (EPS)2.33
Gross Margin32.87%
Net Profit Margin14.09%
Debt/Equity Ratio1,255.6%

How did VVV perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Valvoline undervalued compared to its fair value and its price relative to the market?

32.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VVV ($34.51) is trading below our estimate of fair value ($49.82)

Significantly Below Fair Value: VVV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VVV is good value based on its PE Ratio (14.8x) compared to the US Chemicals industry average (21.6x).

PE vs Market: VVV is good value based on its PE Ratio (14.8x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: VVV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: VVV is overvalued based on its PB Ratio (46x) compared to the US Chemicals industry average (2.5x).


Future Growth

How is Valvoline forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VVV's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: VVV's earnings are forecast to decline over the next 3 years (-2.8% per year).

High Growth Earnings: VVV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: VVV's revenue (9.9% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: VVV's revenue (9.9% 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 (80%).


Past Performance

How has Valvoline performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VVV has high quality earnings.

Growing Profit Margin: VVV's current net profit margins (14.1%) are higher than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: VVV's earnings have grown by 6.7% per year over the past 5 years.

Accelerating Growth: VVV's earnings growth over the past year (32.5%) exceeds its 5-year average (6.7% per year).

Earnings vs Industry: VVV earnings growth over the past year (32.5%) exceeded the Chemicals industry 17.5%.


Return on Equity

High ROE: Whilst VVV's Return on Equity (311.11%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Valvoline's financial position?


Financial Position Analysis

Short Term Liabilities: VVV's short term assets ($1.0B) exceed its short term liabilities ($569.0M).

Long Term Liabilities: VVV's short term assets ($1.0B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: VVV's net debt to equity ratio (1085.2%) is considered high.

Reducing Debt: VVV had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: VVV's debt is well covered by operating cash flow (23.8%).

Interest Coverage: VVV's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Dividend

What is Valvoline current dividend yield, its reliability and sustainability?

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VVV's dividend (1.45%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: VVV's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), 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 (20.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Sam Mitchell (60 yo)

5.33yrs

Tenure

US$5,747,615

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 ($USD5.75M) is about average for companies of similar size in the US market ($USD6.41M).

Compensation vs Earnings: Sam's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VVV's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: VVV's board of directors are considered experienced (5.3 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 employee growth, exchange listings and data sources


Key Information

  • Name: Valvoline Inc.
  • Ticker: VVV
  • Exchange: NYSE
  • Founded: 1866
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: US$6.080b
  • Shares outstanding: 179.98m
  • Website: https://www.valvoline.com

Number of Employees


Location

  • Valvoline Inc.
  • 100 Valvoline Way
  • Lexington
  • Kentucky
  • 40509
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 00:13
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.