Valvoline Inc. (VVV) exhibits 38.5% gross margins and 16.5% return on invested capital within Materials (Major Chemicals), balanced against a 9.3x enterprise multiple and 6.8% implied options volatility.
Sustained 38.5% gross profitability converts into 22.8% operating margin and 16.5% ROIC, outpacing sector cost of capital.
ROIC: 16.5% // GM: 38.5%YoY revenue trajectory of +5.6% paired with 0.92% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +5.6% // FCF YLD: 0.92%Altman Z-Score of 2.46 and Piotroski F-Score of 6/9 indicate low near-term refinancing stress.
ALTMAN Z: 2.46 // F-SCORE: 6/9Trading at 19.6x trailing P/E (18.2x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 19.6x // EV/EBITDA: 9.3xOptions market prices a ±6.8% implied move with a 0.79 put/call ratio around $32.00 max pain.
IMPL MOVE: ±6.8% // P/C: 0.79Elevated industry capital intensity and customer concentration in Major Chemicals require continuous execution to defend 12.3% net margins.
NET MARGIN: 12.3% // D/E: 5.31x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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