Valvoline’s Stock Slumps, Three Years of Profit Losses a Possible Cause
December 20, 2022

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Valvoline Inc Stock Fair Value – Valvoline Inc ($NYSE:VVV). is an American manufacturer of motor oil and other automotive lubricants. Valvoline’s stock has been a volatile one over the past few years and last week it took a 4.1% dip, which may be linked to three consecutive years of declining profits. The company’s declining profits can be attributed to several factors, including increasing competition from other oil companies, rising costs of production, and declining sales due to a shift in consumer preferences. In addition, the company’s investments in research and development have not been as successful as expected. Valvoline has taken steps to address these issues and is focusing on expanding its product line to meet the changing needs of consumers. The company has also invested in marketing and digital technologies to improve its customer experience and drive more sales. The company is also investing in new technologies to improve efficiency and reduce costs. The drop in Valvoline’s stock price could be a reflection of investor concerns over its declining profits, but it could also be due to other factors such as current market conditions or geopolitical events.
However, with the right strategies in place, Valvoline should be able to turn things around and get back on track to profitability.
Price History
Valvoline Inc, a leading manufacturer of motor oil and automotive products, has seen its stock slump in recent months. Despite the recent news coverage being mostly positive, the stock has experienced a 0.8% drop on Monday, opening at $30.6 and closing at $30.3. This could be attributed to three years of profit losses, which could be a major factor in the current slump. The company has been struggling to maintain its profits for some time now. Over the last three years, Valvoline Inc has reported losses in profits, which could have had an effect on their stock prices. This is especially concerning considering that the company was previously seeing steady improvements in their profits. The losses in profits could also be attributed to an increase in competition from other companies offering similar products.
The competitive pressure has meant that Valvoline Inc has had to reduce their prices in order to remain competitive, and this has resulted in a decrease in their profits. The company has also had to invest in more marketing and advertising efforts in order to increase their visibility and reach out to new customers. This has further added to their losses as they have had to pay additional costs for these efforts. Overall, it seems that Valvoline Inc is currently facing some difficulties due to their three years of profit losses. The company needs to find ways to reduce these losses if they are to restore investor confidence and get their stock prices back up. Live Quote…
About the Company
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% |
VI Analysis – Valvoline Inc Stock Fair Value Calculator
Valvoline Inc is a company with long term potential, as reflected in its fundamentals. The VI app simplifies analysis of Valvoline Inc and estimates its fair value at $27.3 per share. Currently, Valvoline Inc shares are trading at $30.3 – a price that is 11% overvalued compared to the fair value. Investors should be aware that the stock is trading at a premium and consider other factors before investing. The company is renowned for providing quality products, exceptional customer service and innovative solutions. Valvoline Inc also has a strong balance sheet, with healthy cash flow and adequate liquidity levels. Valvoline Inc is well positioned to capitalize on the current market conditions and has a strong track record of delivering value to shareholders over the long term. However, investors should consider the risks associated with investing in Valvoline Inc, such as increasing competition, rising raw material costs, and changes in consumer preferences. Overall, Valvoline Inc is an attractive investment opportunity for long-term investors, who can take advantage of the company’s potential for growth and value creation. Investors should conduct further due diligence before investing in Valvoline Inc shares to ensure that their investment is aligned with their risk tolerance and financial goals. More…
VI Peers
The company has a long history of competition with its competitors, Petrol AD, CrossAmerica Partners LP, and Petronas Dagangan Bhd. Valvoline’s products are available in more than 100 countries and the company has a strong presence in North America, Europe, Asia, and Australia. Valvoline is committed to providing the highest quality products and services to its customers.
– Petrol AD ($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
Investing in Valvoline Inc., a leading global supplier of premium branded automotive, commercial and industrial lubricants and automotive chemicals, can be a great opportunity for investors. Valvoline has also been consistently profitable, with income reported in each of the last three years.
However, the company’s stock has recently slumped, with share prices dropping over the past three years. While the exact cause of this slump is not yet clear, it is likely due to a combination of factors, including a decline in sales and profits over the same period. Nevertheless, given Valvoline’s strong reputation and loyal customer base, investors may still find value in investing in the company. Valvoline offers a variety of ways to invest in the company, both directly and through mutual funds, ETFs, and other investment vehicles. Direct investments in Valvoline can be done through buying shares of its common stock, or through purchasing bonds or preferred stock issued by the company. Mutual funds and ETFs that specialize in investing in Valvoline can also be a great option for investors looking to diversify their portfolio. When considering investing in Valvoline, investors should evaluate the company’s financials, current business strategies, and outlook for future success.
Additionally, investors should consider the risks associated with investing in any company, particularly those associated with the oil and gas industry. Finally, investors should consider whether the current price of Valvoline stock is attractive relative to its potential future returns.
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