Should I Buy Valvoline (VVV)? Finance YouTuber Analysis

The YouTuber recommends Valvoline due to its consistent profitability, revenue growth, and significant share buybacks, resulting in a 5.55% annual drop in shares outstanding. While the valuation is not as low as other picks (trailing P/E 27, forward P/E 24.6), its adaptability and consistent cash generation make it a solid buyback company.

“I think this is just the kind of consistent company that's going to continue to buyback shares little by little over time doesn't need to grow the business they can just be a buyback company and generate solid returns for investors”

The analyst recommends Valvoline, despite its 'legacy' business in non-electric vehicles, due to its aggressive share buyback strategy. Shares outstanding have decreased significantly, and the company trades at an attractive multiple. The analyst argues that Valvoline can continue to generate substantial cash flow and increase prices, similar to Altria, as demand for internal combustion engine vehicle services persists in the foreseeable future.

“In 2017 the company had 205 million shares outstanding right now that is down to about 138 million shares outstanding and the company is trading in a fairly attractive multiple four and a half billion dollar market cap price to earnings multiple on a next 12 month basis of about 20.”