Why You Need To Look At This Metric Before Buying Valvoline Inc. (NYSE:VVV)

Valvoline Inc. (NYSE:VVV) shares traded higher over the last trading session, gaining 0.56% on 12/24/20. The shares fell to a low of $23.19 before closing at $23.49. Intraday shares traded counted 0.56 million, which was 62.14% higher than its 30-day average trading volume of 1.47M. VVV’s previous close was $23.36 while the outstanding shares total 187.00M. The firm has a beta of 1.42, a 12-month trailing P/E ratio of 13.92, and a growth ratio of 1.60. The stock’s Relative Strength Index (RSI) is 60.96, with weekly volatility at 1.68% and ATR at 0.47. The VVV stock’s 52-week price range has touched low of $9.06 and a $23.68 high.

Investors have identified the Oil & Gas Refining & Marketing company Valvoline Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $4.32 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Valvoline Inc. (VVV) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.44 billion total, with 444.0 million as their total liabilities.

VVV were able to record 221.0 million as free cash flow during the Q4 2020 quarter of the year, this saw their quarterly net cash flow reduce by 602.0 million. In cash movements, the company had a total of 372.0 million as operating cash flow.

Potential earnings growth for Valvoline Inc. (VVV)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q4 2020 quarter of the year, Valvoline Inc. recorded a total of 652.0 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.53% coming in sequential stages and their sales for the Q4 2020 quarter increasing by 20.86%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 394.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 258.0 million. This allows shareholders to hold on to 187.00M with the recently reported earning now reading 0.66 cents per share. This is a figure that compared to analyst’s prediction for their Q4 2020 (0.46 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.82 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on VVV sounds very interesting.

Is the stock of VVV attractive?

In related news, SVP and CSCO, Moughler Craig A. sold 1,600 shares of the company’s stock in a transaction that recorded on Dec 01. The sale was performed at an average price of 23.25, for a total value of 37,200. As the sale deal closes, the SVP, International, Muashsher Jamal K now sold 497 shares of the company’s stock, valued at 11,292. Also, CLO and Corp. Secy, O’Daniel Julie Marie sold 1,059 shares of the company’s stock in a deal that was recorded on Nov 30. The shares were price at an average price of 22.72 per share, with a total market value of 24,060. Following this completion of acquisition, the SVP, President, Quick Lubes, Puckett Anthony R. now holds 1,600 shares of the company’s stock, valued at 36,352. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.

6 out of 10 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Valvoline Inc.. 0 analysts has assigned a Sell rating on the VVV stock. The 12-month mean consensus price target for the company’s shares has been set at $25.13.


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