Valvoline Inc Stock Intrinsic Value – Valvoline Seeks to Rebrand and Prosper in EV Future, But Uncertainty and Valuations are Risky Downside Factors.
February 5, 2023
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Valvoline Inc Stock Intrinsic Value – Valvoline Inc ($NYSE:VVV). is a well-known company in the automotive industry with a long history of providing motor oil and lubricant products to consumers and businesses alike. Its recent decision to restructure into an automobile maintenance shop may open up opportunities to expand beyond internal combustion engine maintenance and prosper in an EV future.
However, current valuations are not attractive enough and the uncertainty in how management distributes the proceeds from selling their legacy business brings higher risk to the downside. Valvoline is facing several challenges as it seeks to rebrand itself and leverage the potential of the EV future. The company’s current valuation is lower than what analysts expected due to the lack of clarity on how management will distribute the proceeds from selling their legacy business.
Additionally, the EV market is still relatively new, and it is difficult to accurately predict how this segment of the automotive industry will develop. The company’s current strategy is to focus on providing maintenance and repair services for both traditional and electric vehicles, as well as introducing a range of new products tailored to electric vehicle owners. This strategy could provide Valvoline with an opportunity to benefit from the growth of the EV market, provided that the company can successfully execute its plan and make the necessary investments. However, given the uncertainties surrounding valuations and how management will distribute the proceeds from selling their legacy business, there are risks associated with investing in Valvoline’s stock. Therefore, investors should conduct their own research before making any decisions about investing in Valvoline.
Share Price
However, there is still some uncertainty and risk when it comes to valuations, and this can have a negative impact on the company’s stock price. On Friday, Valvoline Inc stock opened at $36.3 and closed at $36.2, a 0.9% decrease from the previous closing price of 36.5. The company is making strides to ensure that it remains competitive in the EV market. This includes investing in research and development to bring new products to market, as well as improving its customer service. Valvoline Inc. is also focusing on its branding strategy, hoping to make a name for itself in the EV industry. However, there are still some concerns about how the company will fare in the long-term. There are questions about the sustainability of the EV market, and what the demand for EV products will look like in the future.
Additionally, the stock price has been volatile, with investors unsure of what to make of the company’s future prospects. Ultimately, Valvoline Inc. is hoping to create a successful and profitable business model in the EV market, but there are still several risks that could derail its plans. The stock price could remain volatile, and there is no guarantee that the company will be able to compete effectively with its competitors. Despite these risks, Valvoline Inc. is optimistic that it can succeed and become a major player in the EV market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Valvoline Inc. More…
| Total Revenues | Net Income | Net Margin |
| 1.24k | 424.3 | 10.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Valvoline Inc. More…
| Operations | Investing | Financing |
| 284.2 | -207.6 | -218.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Valvoline Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.42k | 3.11k | 1.28 |
Key Ratios Snapshot
Some of the financial key ratios for Valvoline Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -19.7% | -12.6% | 17.3% |
| FCF Margin | ROE | ROA |
| 12.3% | 59.0% | 3.9% |
Analysis – Valvoline Inc Stock Intrinsic Value
GoodWhale has conducted an analysis of VALVOLINE INC‘s financials and determined that the fair value of the company’s share is around $27.6. This fair value was calculated using GoodWhale’s proprietary Valuation Line, which takes into account several factors including the company’s balance sheets, income statements and other financial metrics. Currently, VALVOLINE INC’s stock is trading at a price of $36.2, which means that it is overvalued by 31.0%. This means that investors should be cautious when investing in VALVOLINE INC and carefully consider their decision before investing. It is important to note that overvalued stocks can lead to losses if the price drops in the future, so investors should be aware of the risks involved. Furthermore, investors should also pay attention to any changes in the company’s performance or underlying factors that may cause its stock to become undervalued in the future. More…
Peers
The company has a long history of competition with its competitors, Petrol AD, CrossAmerica Partners LP, and Petronas Dagangan Bhd. Valvoline’s products are available in more than 100 countries and the company has a strong presence in North America, Europe, Asia, and Australia. Valvoline is committed to providing the highest quality products and services to its customers.
– Petrol AD ($LTS:0IMR)
Petrol AD is a Bulgarian oil and gas company with a market capitalization of 4.26M as of 2022. The company has a Return on Equity of -634.11%. Petrol AD is engaged in the exploration, production, refining and marketing of oil and gas. The company has operations in Bulgaria, Romania and Serbia.
– CrossAmerica Partners LP ($NYSE:CAPL)
CrossAmerica Partners LP is a wholesale distributor of motor fuels and convenience store operator in the United States. The company operates through two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessees, independent dealers, and other customers. The Retail segment operates company-operated convenience stores. As of December 31, 2020, the company operated 1,873 convenience stores in 35 states.
– Petronas Dagangan Bhd ($KLSE:5681)
Petronas Dagangan Bhd is a market leader in the retail and commercial segments of the Malaysian petroleum market. The company has a long-established reputation for providing high-quality products and services, and is committed to meeting the needs of its customers. Petronas Dagangan Bhd has a strong financial position, with a market capitalisation of 21.16 billion as of 2022 and a return on equity of 9.86%. The company is well-positioned to continue its growth and success in the future.
Summary
Valvoline Inc. is a leading engine and automotive services provider which has recently announced plans to rebrand and take advantage of the growing electric vehicle (EV) market. Despite the positive media coverage surrounding the company’s plans, there are some risks to be aware of before investing. Valuation remains a concern as the company’s stock price has been volatile in recent months.
Additionally, there is uncertainty around the long-term success of their rebranding strategy. Investors looking to invest in Valvoline Inc. should weigh these risks before making any decisions.
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