This is a step-by-step stock review to answer the question, is Valvoline (VVV) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Valvoline (VVV) stock a good buy?
1. Valvoline Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 1866 by Dr. John Ellis, who discovered the lubricating properties of crude oil.
- First Product: Developed the world’s first petroleum-based lubricant, revolutionizing engine maintenance.
- 1895: Introduced Valvoline motor oil, becoming a key player in the automotive industry.
- Early 1900s: Became the recommended motor oil for the Model T Ford.
- Innovation: Known for continuous innovation in motor oil technology, including multi-grade oils and synthetic blends.
- 1949: Introduced “All-Climate” oil, the first oil that could be used in any weather.
- 1987: Launched Valvoline Instant Oil Change (VIOC) centers, offering quick and convenient vehicle maintenance services.
- 2000s: Expanded product line to include high-mileage oils, transmission fluids, and performance chemicals.
- Sustainability: Focuses on environmentally friendly products and recycling programs.
- 2016: Spun off from Ashland Inc. to become an independent publicly traded company.
- Global Presence: Operates in over 140 countries, with a strong brand reputation worldwide.
- Recognition: Frequently awarded for product quality and customer satisfaction.
- Community: Involved in various charitable initiatives and educational programs.
Valvoline’s history spans over 150 years of innovation and leadership in the automotive lubricants industry. From pioneering petroleum-based lubricants to offering comprehensive vehicle maintenance services, Valvoline continues to be a trusted name in automotive care globally.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 50/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Valvoline (VVV) makes money:
- Making money by selling motor oils, lubricants, and automotive chemicals.
- Earning revenue from sales of maintenance and care products for vehicles, such as filters and additives.
- Generating income from services provided at Valvoline Instant Oil Change (VIOC) centers, including oil changes, fluid top-offs, and vehicle inspections.
- Offering commercial and industrial lubricants for businesses and industries, such as manufacturing and transportation.
- Selling branded merchandise like apparel, hats, and promotional items to customers.
- Providing consulting and training services related to vehicle maintenance and lubrication to businesses and individuals.
Valvoline uses these various streams to maximize their earnings and provide diverse services to moviegoers.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Valvoline (VVV) stacks up against other companies.
- Ultrapar Participações S.A. (UGP) – 83
- Star Group, L.P. (SGU) – 78
- Valero Energy Corporation. (VLO) – 72
- PBF Energy Inc. (PBF) – 61
- HF Sinclair Corporation. (DINO) – 56
- Valvoline Inc. (VVV) – 50
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Lori Flees became the President of Valvoline Global Retail in 2021.
- She focused on expanding Valvoline’s retail footprint, opening new service centers nationwide.
- Flees enhanced customer experience by implementing digital tools and improving service speed.
- She prioritized employee training and development, leading to better service quality.
- Flees introduced innovative service offerings, such as mobile oil changes and fleet services.
- She emphasized sustainability, promoting eco-friendly products and practices.
- Flees improved operational efficiencies, resulting in cost savings and increased profitability.
- She strengthened Valvoline’s brand presence through strategic marketing initiatives.
- Flees fostered a culture of safety and excellence, enhancing workplace standards.
- Under her leadership, Valvoline saw growth in customer loyalty and market share.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Valvoline (VVV) is 50/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Valvoline (VVV) stock a good buy?
Some of the top questions investors can have is Valvoline (VVV) stock a good buy or should I buy Valvoline (VVV) stock?
Investing in Valvoline may be appealing. Valvoline is a trusted global brand known for its high-quality automotive lubricants and services. Its strong distribution network and diverse product line contribute to consistent revenue generation. Valvoline’s focus on innovation, including its expansion into synthetic and environmentally friendly products, positions it well in the competitive automotive industry. However, fluctuations in oil prices and changes in consumer preferences could affect its performance. Conducting thorough research on Valvoline’s market position and growth prospects is essential before making an investment decision.
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To truly know if Valvoline is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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