Last Updated: 08 Nov 2024
Executive Summary
Valvoline Inc. (VVV) is a leading manufacturer and supplier of automotive and engine maintenance products and services. The company has a strong market position, with a wide range of products and services that are sold through a variety of channels. Valvoline is also a financially sound company, with a strong balance sheet and a track record of profitability. The company's stock price has performed well in recent years, and analysts are generally positive on the company's outlook.
Company Overview
Valvoline Inc. was founded in 1866 and is headquartered in Lexington, Kentucky. The company manufactures and markets a wide range of automotive and engine maintenance products, including motor oil, filters, additives, and car care products. Valvoline also provides a variety of services, including oil changes, tune-ups, and brake repairs. The company's products and services are sold through a variety of channels, including retail stores, auto parts stores, and automotive service centers.
Valvoline is a global company, with operations in over 140 countries. The company has a strong market position in the United States, where it is the leading supplier of motor oil. Valvoline also has a growing presence in international markets, particularly in Asia and Latin America.
Fundamental Analysis
Valvoline is a financially sound company, with a strong balance sheet and a track record of profitability. The company has a debt-to-equity ratio of 0.43, which is below the industry average. Valvoline also has a strong cash flow, with operating cash flow of $278 million in the last twelve months.
Valvoline's profitability metrics are also strong. The company's gross profit margin is 34.6%, which is above the industry average. Valvoline's operating profit margin is 10.7%, which is also above the industry average. The company's net profit margin is 5.3%, which is in line with the industry average.
Valvoline's earnings per share (EPS) have grown at an average annual rate of 10% over the last five years. The company's EPS is expected to grow by 12% in 2023.
Technical Analysis
Valvoline's stock price has performed well in recent years. The stock price has risen by over 50% since the beginning of 2021. The stock price is currently trading at $43.41, which is above its 50-day moving average of $41.12 and its 200-day moving average of $41.87.
The technical indicators are also positive for Valvoline. The relative strength index (RSI) is currently at 65, which is above the neutral level of 50. The moving average convergence divergence (MACD) is also positive, which indicates that the stock price is likely to continue to rise.
Short Term Outlook
The short-term outlook for Valvoline is positive. The company's stock price is trading above its moving averages and the technical indicators are positive. The company's earnings are also expected to continue to grow in the coming quarters.
Long Term Outlook
The long-term outlook for Valvoline is also positive. The company has a strong market position, a wide range of products and services, and a track record of profitability. The company is also well-positioned to benefit from the growing demand for automotive and engine maintenance products and services.
Analyst Recommendations
Analysts are generally positive on Valvoline's outlook. The consensus analyst rating for the stock is "buy." The average analyst target price for the stock is $47.09, which represents a potential upside of 8.5% from the current price.
