Valvoline Inc. [NYSE:VVV]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Valvoline Inc. [VVV], the latest average analyst recommendation we can see is from the quarter closing in September. On average, stock market experts give VVV an Hold rating. The average 12-month price forecast for this stock is $22.17, with the high estimate being $27.00, the low estimate being $19.00 and the median estimate amounting to $21.50. This is compared to its latest closing price of $19.80.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Valvoline Inc. [VVV] is sitting at 2.55. This is compared to 1 month ago, when its average rating was 2.09.
For the quarter ending in Sep-18 Valvoline Inc. [VVV] generated $0.59 billion in sales. That’s 0.04% lower than the average estimate of $0.59 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Wed 6 Feb (In 29 Days).
Fundamental Analysis of Valvoline Inc. [VVV]
Now let’s turn to look at profitability: with a current Operating Margin for Valvoline Inc. [VVV] sitting at +16.46 and its Gross Margin at +35.27, this company’s Net Margin is now 7.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 36.22, and its Return on Invested Capital has reached 31.70%, and its Return on Assets is 8.81. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates VVV financial performance.
Turning to investigate this organization’s capital structure, Valvoline Inc. [VVV] has generated Total Debt to Total Capital is 135.41, while its Total Debt to Total Assets stands at 73.84. Looking toward the future, this publicly-traded company’s Long-Term Debt to Total Capital is 132.44. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 12.82 and its Total Debt to EBITDA Value is 3.18. The Enterprise Value to Sales for this firm is now 2.41, and its Total Debt to Enterprise Value stands at 0.25. Valvoline Inc. [VVV] has a Price to Cash Flow Ratio of 13.24 and P/E Ratio of 23.74. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Valvoline Inc. [VVV] earns $341,045 for each employee under its payroll. Income works out to $24,776 per employee. Similarly, this company’s Receivables Turnover is 5.76 and its Total Asset Turnover is 1.21. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.34 and its Current Ratio is 1.76. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Valvoline Inc. [VVV] has 191.00M shares outstanding, amounting to a total market cap of $3.86B. Its stock price has been found in the range of 17.49 to 25.27. At its current price, it has moved by -20.10% from its 52-week high, and it has moved 15.44% from its 52-week low.
This stock’s Beta value is currently , which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 59.16. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Valvoline Inc. [VVV] a Reliable Buy?
Shares of Valvoline Inc. [VVV], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.