LEXINGTON, Ky. - Valvoline Inc . (NYSE: NYSE:VVV), a leader in automotive preventive maintenance, has announced the planned retirement of Chief Financial Officer Mary Meixelsperger. She will continue in her role until a successor is appointed and will assist with the transition thereafter. The company is working with an executive search firm to find a replacement, considering both internal and external candidates.
Meixelsperger joined Valvoline in 2016, playing a pivotal role in the company's initial public offering and spinoff from Ashland (NYSE:ASH) Global Holdings. Her career includes previous CFO positions at DSW Inc. and Shopko Stores, and she currently serves on the board of directors for Genesco (NYSE:GCO) Inc. and the Cincinnati branch board of The Federal Reserve Bank of Cleveland. In 2023, Meixelsperger was recognized as one of the Top 50 Women Leaders of Kentucky.
CEO and President of Valvoline, Lori Flees, expressed gratitude for Meixelsperger's contributions to the company's growth and success, highlighting her financial leadership and strategic insights. In turn, Meixelsperger expressed her gratitude for her time with Valvoline and her commitment to a smooth transition of the finance leadership.
Valvoline operates approximately 2,000 service centers across North America, delivering services such as oil changes and other maintenance services recommended by manufacturers. The company has reported 17 years of consecutive system-wide same-store sales growth, with $1.4 billion in revenue from $2.8 billion in system-wide store sales in fiscal year 2023. Valvoline attributes much of its success to its team members and franchise partners, noting its recognition for training excellence and franchising.
This announcement is based on a press release statement from Valvoline Inc.
In other recent news, Valvoline Inc. reported a 13% increase in system-wide store sales for its second fiscal quarter of 2024, reaching $746 million. The company's adjusted EBITDA rose by 21% to $105 million, and adjusted earnings per share surged by over 60% to $0.37. The company also expanded its network with 38 new stores and completed a $1.6 billion share repurchase program. Stephens initiated coverage on Valvoline, assigning an Overweight rating and a $49.00 price target, highlighting the company's consistent same-store sales growth. Mizuho Securities reiterated an Outperform rating on Valvoline, focusing on the upcoming fiscal Q4 results and the initial guidance for FY25E. Baird initiated coverage on Valvoline with an Outperform rating, citing the company's potential for sustained mid-single-digit percentage comparable store sales growth. RBC Capital adjusted its outlook on Valvoline, reducing the price target to $48.00 while keeping a Sector Perform rating. Furthermore, Valvoline announced a new stock repurchase program, allowing for the repurchase of up to $400 million of its common stock.
InvestingPro Insights
As Valvoline Inc. (NYSE: VVV) prepares for a transition in its financial leadership, investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, Valvoline boasts a market capitalization of $5.42 billion, reflecting its significant presence in the automotive maintenance sector.
The company's financial health appears robust, with revenue growth of 13.29% over the last twelve months as of Q3 2024, aligning with the 17 years of consecutive system-wide same-store sales growth mentioned in the article. This growth trajectory is further supported by a strong EBITDA growth of 55.65% over the same period, indicating improved operational efficiency.
InvestingPro Tips highlight that management has been aggressively buying back shares, which, coupled with the high shareholder yield, suggests a commitment to returning value to shareholders. This strategy may be particularly noteworthy given that Valvoline does not currently pay a dividend.
The company's price-to-earnings ratio of 27.03 (adjusted for the last twelve months) and price-to-book ratio of 50.88 indicate that the stock is trading at premium valuations. This could be justified by the company's strong market position and consistent growth, as outlined in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 8 more InvestingPro Tips available for Valvoline, which could provide valuable context for the company's financial outlook during this leadership transition.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.