Valvoline Struggles to Make the Most of Its Capital

August 9, 2023

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Valvoline Inc ($NYSE:VVV). is one of the oldest motor oil companies in the United States. Despite its long history, Valvoline could potentially be struggling to maximize its capital. Analysis of the company’s financial statements reveals that Valvoline’s profitability has been declining over the last few years. The decrease in net income is due to several factors, including increased competition, a decrease in demand for certain lubricant products, and a rise in production costs. Valvoline has taken steps to address these issues, such as launching new product lines, expanding its distribution network, and reducing its operating costs.

However, these measures have yet to have a significant impact on the company’s financial performance. As such, Valvoline is still struggling to make the most of its capital. The company needs to develop a more effective strategy to maximize its profits and ensure long-term success. This may involve further investment in research and development, better cost management, or strategic acquisitions. Whatever the case, Valvoline must take action soon if it wants to turn its financial performance around and maximize its capital.

Market Price

On Friday, the stock opened at $36.2 and closed at $36.6, surpassing the prior closing price of $36.1. Valvoline has been attempting to deploy its capital strategically and expand its market share in an increasingly competitive landscape. Furthermore, the company is investing both organically and through acquisitions in order to strengthen its business operations. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Valvoline Inc. More…

    Total Revenues Net Income Net Margin
    1.33k 1.57k 11.3%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Valvoline Inc. More…

    Operations Investing Financing
    298.5 2.4k -482.9
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
    4.28k 2.91k 8.14
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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
    -18.2% -13.3% 14.0%
    FCF Margin ROE ROA
    10.9% 14.0% 2.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis

    At GoodWhale, we have conducted an analysis of VALVOLINE INC‘s fundamentals. Our Star Chart has concluded that VALVOLINE INC has an intermediate health score of 6/10 with regard to its cashflows and debt, meaning that it is likely to safely ride out any crisis without the risk of bankruptcy. Furthermore, by classifying VALVOLINE INC as a ‘cow’, we conclude that it has the track record of paying out consistent and sustainable dividends. This makes VALVOLINE INC an attractive investment opportunity for investors who are looking for a consistent dividend payout. Additionally, VALVOLINE INC is strong in asset, dividend, medium in profitability and weak in growth which may further appeal to investors who are looking for stability rather than high returns. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis




  • 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 global producer and distributor of premium-branded lubricants, automotive chemicals, and car-care products. The company is currently facing difficulties in using its capital effectively. In order to assess the investment potential of Valvoline Inc, it is important to analyze its financial performance, competitive position, and future prospects. This includes analyzing the company’s recent financial statements, its competitive position in the industry, and the potential for future growth.

    Additionally, it is important to consider the company’s management, its share price performance, and whether there are any risks associated with investing in the company. After assessing all these factors, investors can make an informed decision regarding whether or not to invest in Valvoline Inc.

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