Valvoline (VVV)
NYSEConsumer DiscretionaryAuto - DealershipsSnapshot 2026-09-04
$32.03+1.07%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryAuto - DealershipsSnapshot 2026-09-04
QuarterlyIQ Insights · VVV
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks VVV against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated strong grew net income 63% of the time over the next year (vs 50% for the rest of the cohort, n=5213).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on maximizing growth and profitability in Valvoline's core automotive maintenance business.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $462 million in 2026-Q1 to $545 million in 2026-Q3, with operating income increasing from $18.3 million to $112.2 million. Management's focus on driving the core business is reflected in strong top-line and profit growth, indicating delivering trajectory.
“The team continues to manage the business effectively through the changing supply and macro environment.”
“We delivered a strong second quarter with results that reflect our focus on driving the full potential of the core business.”
“At Valvoline Inc., it all starts with our people, including the 13,000 team members who are working to drive the full potential of our core business.”
Grow the number of company-operated and franchised stores while maintaining operational discipline.
Stated as a priority in 3 of last 3 quarters. System-wide store count increased from 2,380 in 2026-Q1 to 2,456 in 2026-Q3, with net additions each quarter (200 in Q1, 29 in Q2, 47 in Q3). Management is delivering on sustainable network growth through steady store expansion.
“System-wide net store additions in the quarter totaled 47 (25 franchise and 22 company-operated additions).”
Enhance profitability by controlling selling, general and administrative expenses and expanding margins.
Stated as a priority in 3 of last 3 quarters. Gross profit rose from $187.0 million in 2026-Q2 to $214.9 million in 2026-Q3, while SG&A expenses increased modestly from $98.7 million to $103.0 million, indicating improved leverage and margin expansion. Management is delivering on this priority.
Control capital spending within targeted ranges to support growth while managing cash flow.
Stated as a priority in 3 of last 3 quarters. Capital expenditures guidance narrowed from $250-$280 million in 2025-Q4 to $240-$260 million in 2026-Q3, reflecting management's focus on disciplined spending. The trajectory shows management maintaining capital discipline.
Enhance financial flexibility by issuing senior notes and amending credit facilities to improve debt maturity and reduce costs.
Newly stated in 2026-08-13 press release. Valvoline issued $600 million senior notes to repay term loans and amend credit facilities, aiming to strengthen liquidity and reduce borrowing costs. This is a recent capital allocation action with clear financial impact.
Over the trailing year it converted 0.96x of net income into operating cash flow. Historically, Consumer Discretionary names rated neutral grew net income 49% of the time over the next year (vs 49% for the rest of the cohort, n=4864).
Most sensitive to long-term interest rates.
Not enough signal to read sensitivity to the US dollar, the broad stock market, real (inflation-adjusted) rates, Fed net liquidity (low R² over the window).
19 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated volatile grew net income 59% of the time over the next year (vs 48% for the rest of the cohort, n=1937).
Not investment advice. As of 2026-09-04.
“System-wide net store additions in the quarter totaled 29 (15 franchise and 14 company-operated additions).”
“System-wide net store additions in the quarter totaled 200, including 162 Breeze stores.”
“We generated healthy profit growth, solid margins and improved SG&A leverage.”
“We also delivered strong profit growth and margin expansion this quarter by maintaining high productivity in our stores and improving SG&A leverage.”
“System-wide same store sales growth of 5.8%, along with our network expansion, drove double-digit profit growth and margin improvement.”
“Capital expenditures $240 - $260 million for fiscal 2026.”
“Capital expenditures no change $250 - $280 million for fiscal 2026.”
“Fiscal 2026 Outlook... Capital expenditures $250 - $280 million.”