| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
VVV Stock Overview
Valvoline Inc. manufactures, markets, and supplies, engine and automotive maintenance products and services.
Valvoline Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$33.78 |
| 52 Week High | US$37.97 |
| 52 Week Low | US$23.40 |
| Beta | 1.36 |
| 1 Month Change | -5.54% |
| 3 Month Change | -4.25% |
| 1 Year Change | 34.69% |
| 3 Year Change | 56.03% |
| 5 Year Change | 50.20% |
| Change since IPO | 46.23% |
Recent News & Updates
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...
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...
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
| VVV | US Chemicals | US Market | |
|---|---|---|---|
| 7D | -6.2% | -3.5% | -4.6% |
| 1Y | 34.7% | 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
| VVV volatility | |
|---|---|
| VVV Average Weekly Movement | 3.4% |
| Chemicals Industry Average Movement | 5.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1866 | 9,800 | Sam Mitchell | https://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
| VVV fundamental statistics | |
|---|---|
| Market Cap | US$6.08b |
| Earnings (TTM) | US$420.00m |
| Revenue (TTM) | US$2.98b |
14.5x
P/E Ratio2.0x
P/S RatioIs VVV overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| VVV income statement (TTM) | |
|---|---|
| Revenue | US$2.98b |
| Cost of Revenue | US$2.00b |
| Gross Profit | US$980.00m |
| Expenses | US$560.00m |
| Earnings | US$420.00m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 08, 2022
| Earnings per share (EPS) | 2.33 |
| Gross Margin | 32.87% |
| Net Profit Margin | 14.09% |
| Debt/Equity Ratio | 1,255.6% |
How did VVV perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield22%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 00:13 |
| End of Day Share Price | 2022/01/20 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/09/30 |
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.