Valvoline Inc.
Valvoline Inc. Fundamental Analysis
Valvoline Inc. (VVV) shows moderate financial fundamentals with a PE ratio of 57.34, profit margin of 4.91%, and ROE of 28.57%. The company generates $1.8B in annual revenue with moderate year-over-year growth of 5.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VVV's fundamental strength across five key dimensions:
Efficiency Score
WeakVVV struggles to generate sufficient returns from assets.
Valuation Score
ModerateVVV shows balanced valuation metrics.
Growth Score
ModerateVVV shows steady but slowing expansion.
Financial Health Score
WeakVVV carries high financial risk with limited liquidity.
Profitability Score
ModerateVVV maintains healthy but balanced margins.
Key Financial Metrics
Is VVV Expensive or Cheap?
P/E Ratio
VVV trades at 57.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VVV's PEG of -0.97 indicates potential undervaluation.
Price to Book
The market values Valvoline Inc. at 16.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.61 times EBITDA. This is generally considered low.
How Well Does VVV Make Money?
Net Profit Margin
For every $100 in sales, Valvoline Inc. keeps $4.91 as profit after all expenses.
Operating Margin
Core operations generate 17.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.57 in profit for every $100 of shareholder equity.
ROA
Valvoline Inc. generates $2.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Valvoline Inc. produces operating cash flow of $319.83M, showing steady but balanced cash generation.
Free Cash Flow
Valvoline Inc. produces free cash flow of $57.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.45 in free cash annually.
FCF Yield
VVV converts 1.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
57.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How VVV Stacks Against Its Sector Peers
| Metric | VVV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 57.34 | 20.19 | Worse (Expensive) |
| ROE | 28.57% | 1019.00% | Weak |
| Net Margin | 4.91% | -44017.00% (disorted) | Weak |
| Debt/Equity | 7.86 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.70 | 4.60 | Weak Liquidity |
| ROA | 2.54% | -11655350.00% (disorted) | Weak |
VVV outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Valvoline Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
243.96%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
-2.70%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
16.90%
Industry Style: Cyclical, Value, Commodity
High Growth