Valvoline Inc. VVV

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
69/100
Moderate

About Valvoline Inc.

Valvoline Inc. provides automotive preventive maintenance through its retail stores in the United States and Canada. The company offers oil changes; battery, bulb, and wiper replacements; tire rotations; and other maintenance services. It also operates and franchises service centers and retail locations. The company was founded in 1866 and is headquartered in Lexington, Kentucky. Full VVV analysis →

Competitive advantage assessment

Key strengths

  • Scale Supporting Profitability Profitability at scale is strong (score 0.80), demonstrating competitive advantages.
  • ROIC Sustainably Above Peers ROIC at 92.6th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.18), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
72

Where VVV ranks in Auto & Truck Dealerships

Valvoline Inc. ranks #7 of 31 scored companies in Auto & Truck Dealerships by moat score — the top 23%. The widest moat in the group is CarGurus, Inc. (CARG) at 77/100.

Moat scores for companies ranked near VVV in Auto & Truck Dealerships
# Company Moat score Rating
3 Mister Car Wash, Inc. MCW 75/100 Moderate
4 Rush Enterprises, Inc. RUSHB 75/100 Moderate
5 Cars.com Inc. CARS 71/100 Moderate
6 OPENLANE, Inc. KAR 70/100 Moderate
7 Valvoline Inc. VVV 69/100 Moderate
8 Carvana Co. CVNA 65/100 Moderate
9 Penske Automotive Group, Inc. PAG 65/100 Moderate
10 Driven Brands Holdings Inc. DRVN 64/100 Moderate
11 Asbury Automotive Group Inc ABG 60/100 Moderate

See every General Corporate company ranked by moat score →

How VVV scores on the Corporate Default defenses

Pricing Power

Score 72 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 71 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 69 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 66 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 57 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 80 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding VVV's moat

What is Valvoline Inc.'s moat score?

Valvoline Inc. (VVV) scores 69 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #7 of 31 scored companies in Auto & Truck Dealerships, the top 23%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 30 companies in Auto & Truck Dealerships. Its strongest defense is Scale & Market Position (80/100) and its weakest is Resilience (57/100).

How does Valvoline Inc. compare with other Auto & Truck Dealerships companies?

Valvoline Inc. ranks #7 of 31 scored companies in Auto & Truck Dealerships by moat score. The widest moat in Auto & Truck Dealerships is CarGurus, Inc. (CARG) at 77/100. The companies ranked closest are OPENLANE, Inc. (KAR) at 70 just above it and Carvana Co. (CVNA) at 65 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 30 companies in Auto & Truck Dealerships. The defenses are then weighted to produce the overall score out of 100.

Why is Valvoline Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Valvoline Inc.?

The Corporate Default template measures 6 defenses, and VVV scores: Pricing Power (72), Cost Advantage (71), Customer Stickiness (69), Capital Efficiency (66), Resilience (57), Scale & Market Position (80). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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