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Valvoline Inc. What the bulls are saying: 🐂 #VVV is enjoying healthy growth, illustrated by its historical compound annual growth rate (CAGR) of +8.2% since 2016, with plans to accelerate this to between +7% to +10% year on year. The company's robust growth is supported by its blend of franchised and company-owned stores, and further bolstered by the practice of pricing flexibility that could spur additional growth. Furthermore, the +7.1% system-wide SSS (same-store sales) growth, a resilient quick lube industry emphasizing the importance of oil changes for vehicle longevity, and growing demand for 'do-it-for-me' services and add-on sales, all contribute to Valvoline's strong financial position. What the bears are saying: 🐻 Valvoline is facing challenges with stagnant growth as indicated by its main competitor, Jiffy Lube, and industry trends showing a decline in drivers choosing to service their vehicles at automotive maintenance establishments. The company's future pricing situation is also concerning as it is expected to be below their long-term growth target, mainly due to the substantial price hikes seen in previous years. Furthermore, the general underperformance of stocks in the auto-aftermarket sector, which includes companies like #DRVN, #MCW, and #MNRO, further casts a shadow on the outlook for Valvoline.

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