VVV

Valvoline Inc

Consumer, Industrial/Transportation


Presented:11/30/2022
Price:$32.86
Cap:$5.74B
Current Price:$41.48
Cap:$5.35B

Presented

Date11/30/2022
Price$32.86
Market Cap$5.74B
Ent Value$6.64B
P/E Ratio13.98x
Book Value$1.74
Div Yield1.14%
Shares O/S174.62M
Ave Daily Vol1,523,505
Short Int1.70%

Current

Price$41.48
Market Cap$5.35B
Valvoline, Inc. engages in the production, marketing, and supply of engine and automotive maintenance products and services. It operates through the Retail Services segment. The Retail Services segment services the passenger car and light truck quick lube market in the US and Canada with preventive maintenance services done through company operated and independent franchise care stores. The company was founded by John Ellis in 1866 and is headquartered in Lexington, KY.

Publicly traded companies mentioned herein: Royal Dutch Shell PLC (RDSA NA), Valvoline Inc (VVV)

Highlights

The presenter is long shares of Valvoline Inc (VVV), which consists of two businesses, a Retail Services segment and a Global Products segment, which is being sold in Q1. The Retail Services business is made up of 1,715 Valvoline quick lube stations (790 company owned, 925 franchised). Valvoline is the No. 2 player in the space behind Jiffy Lube (>2,100 locations), which is owned by Royal Dutch Shell (RDSA NA). Retail Services represents just over half the total company’s EBITDA and is the crux to the thesis with the presenter believing this to be a great consumer services business with strong SSS comps.

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Idea Discussion

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