NYSE:VVV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record and fair value.


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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

VVVIndustryMarket
7 Day3.4%2.1%-1.4%
30 Day1.4%2.3%1.6%
90 Day9.7%6.9%7.3%
1 Year26.8%24.0%36.4%33.2%40.2%37.1%
3 Year16.5%10.2%35.9%15.1%62.5%52.1%
5 Yearn/a104.4%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

Valuation

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

NamePositionTenureCompensationOwnership
Samuel Mitchell
CEO & Director4.42yrsUS$5.42m0.14%
$ 6.1m
Mary Meixelsperger
Chief Financial Officer4.67yrsUS$2.03m0.033%
$ 1.5m
Julie O'Daniel
Senior VP4.42yrsUS$1.14m0.0055%
$ 244.9k
Craig Moughler
Senior VP & Chief Supply Chain Officer4.42yrsUS$1.01m0.011%
$ 480.4k
Anthony Puckett
Senior VP & President of QuickLubes4.42yrsUS$1.18m0.0025%
$ 109.5k
Michael Ryan
Chief Accounting Officer & Controller1.42yrsno data0.00043%
$ 19.1k
Mahmoud Sharaf
VP of Investor Relationsno datano datano data
Michele Sparks
Senior Director of Corporate Communicationsno datano datano data
Heidi Matheys
Senior VP & Chief Marketing Officer4.42yrsUS$655.79k0.014%
$ 614.8k
Jonathan Caldwell
Senior VP & Chief People Officer0.83yrno data0.00091%
$ 40.5k
Thomas Gerrald
Senior Vice President of Core North America4.42yrsno data0.0071%
$ 315.2k
Jamal Muashsher
Senior Vice President of International1.92yrsno data0.0021%
$ 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

NamePositionTenureCompensationOwnership
Samuel Mitchell
CEO & Director4.42yrsUS$5.42m0.14%
$ 6.1m
Stephen Kirk
Independent Non-Executive Chairman3.33yrsUS$250.02k0.0065%
$ 290.3k
Stephen Macadam
Independent Director4.42yrsUS$210.02k0.0060%
$ 268.9k
Richard Freeland
Independent Director4.42yrsUS$210.02k0.0055%
$ 246.6k
Charles Sonsteby
Independent Director4.42yrsUS$230.02k0.0066%
$ 292.9k
Mary Twinem
Independent Director4.42yrsUS$225.02k0.0055%
$ 244.0k
Gerald Evans
Independent Director1.17yrsUS$212.15k0%
$ 0
Vada Manager
Independent Director4.42yrsUS$225.02k0.0029%
$ 127.3k
Carol Kruse
Independent Director2.17yrsUS$210.02k0%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VVVNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2016
0V4DB (Deutsche Boerse AG)YesCommon StockDEEURSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:26
End of Day Share Price2021/02/24 00:00
Earnings2020/12/31
Annual Earnings2020/09/30


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.