VALHI INC (VHI) Stock Fundamental Analysis
NYSE:VHI - New York Stock Exchange, Inc. - US9189052098 - Common Stock - Currency: USD
Taking everything into account, VHI scores 5 out of 10 in our fundamental rating. VHI was compared to 85 industry peers in the Chemicals industry. VHI has only an average score on both its financial health and profitability. VHI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VHI was profitable.
VHI had a negative operating cash flow in the past year.
Of the past 5 years VHI 4 years were profitable.
Each year in the past 5 years VHI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.25%, VHI is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
With a decent Return On Equity value of 11.02%, VHI is doing good in the industry, outperforming 76.47% of the companies in the same industry.
VHI's Return On Invested Capital of 5.83% is in line compared to the rest of the industry. VHI outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 11.02% | ||
| ROIC | 5.83% |
ROA(3y)2.2%
ROA(5y)2.55%
ROE(3y)6.18%
ROE(5y)8.39%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.54%, VHI is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
In the last couple of years the Profit Margin of VHI has grown nicely.
The Operating Margin of VHI (9.31%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VHI has grown nicely.
The Gross Margin of VHI (21.90%) is worse than 61.18% of its industry peers.
VHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 5.54% | ||
| GM | 21.9% |
OM growth 3Y-11.53%
OM growth 5Y1.8%
PM growth 3Y-2.52%
PM growth 5Y14.63%
GM growth 3Y-7.09%
GM growth 5Y-2.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VHI is destroying value.
The number of shares outstanding for VHI remains at a similar level compared to 1 year ago.
Compared to 5 years ago, VHI has about the same amount of shares outstanding.
The debt/assets ratio for VHI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.86 indicates that VHI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VHI (1.86) is comparable to the rest of the industry.
VHI has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
VHI has a Debt to Equity ratio of 0.49. This is in the better half of the industry: VHI outperforms 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
ROIC/WACC0.67
WACC8.66%
2.3 Liquidity
VHI has a Current Ratio of 2.67. This indicates that VHI is financially healthy and has no problem in meeting its short term obligations.
VHI has a better Current ratio (2.67) than 76.47% of its industry peers.
A Quick Ratio of 1.29 indicates that VHI should not have too much problems paying its short term obligations.
VHI has a Quick ratio (1.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 888.46% over the past year.
The Earnings Per Share has been growing by 14.04% on average over the past years. This is quite good.
VHI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.82%.
The Revenue has been growing slightly by 2.10% on average over the past years.
EPS 1Y (TTM)888.46%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%318.52%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%1.51%
3.2 Future
Based on estimates for the next years, VHI will show a small growth in Earnings Per Share. The EPS will grow by 6.52% on average per year.
VHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.77% yearly.
EPS Next Y0.91%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.92%
Revenue Next 2Y9.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.31 indicates a rather cheap valuation of VHI.
VHI's Price/Earnings ratio is rather cheap when compared to the industry. VHI is cheaper than 97.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. VHI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.81, the valuation of VHI can be described as very cheap.
98.82% of the companies in the same industry are more expensive than VHI, based on the Price/Forward Earnings ratio.
VHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.31 | ||
| Fwd PE | 4.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VHI indicates a rather cheap valuation: VHI is cheaper than 96.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VHI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.76
PEG (5Y)0.31
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.73%, VHI has a reasonable but not impressive dividend return.
VHI's Dividend Yield is comparable with the industry average which is at 3.53.
VHI's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
The dividend of VHI decreases each year by -19.61%.
VHI has paid a dividend for at least 10 years, which is a reliable track record.
VHI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
7.77% of the earnings are spent on dividend by VHI. This is a low number and sustainable payout ratio.
DP7.77%
EPS Next 2Y6.52%
EPS Next 3YN/A
17.68
-0.06 (-0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.97%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.1%
Market Cap500.17M
Analysts42.5
Price Target12.24 (-30.77%)
Short Float %2.2%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend0.32
Dividend Growth(5Y)-19.61%
DP7.77%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.71%
Min EPS beat(2)-10.82%
Max EPS beat(2)32.23%
EPS beat(4)3
Avg EPS beat(4)65.84%
Min EPS beat(4)-10.82%
Max EPS beat(4)142.33%
EPS beat(8)4
Avg EPS beat(8)-584.21%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-40%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.31 | ||
| Fwd PE | 4.81 | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.47 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 3.42 |
EPS(TTM)4.1
EY23.19%
EPS(NY)3.68
Fwd EY20.79%
FCF(TTM)-3.59
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS74.68
BVpS37.56
TBVpS24.04
PEG (NY)4.76
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 11.02% | ||
| ROCE | 8.82% | ||
| ROIC | 5.83% | ||
| ROICexc | 6.39% | ||
| ROICexgc | 7.87% | ||
| OM | 9.31% | ||
| PM (TTM) | 5.54% | ||
| GM | 21.9% | ||
| FCFM | N/A |
ROA(3y)2.2%
ROA(5y)2.55%
ROE(3y)6.18%
ROE(5y)8.39%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-13.32%
ROICexcg growth 5Y5.94%
ROICexc growth 3Y-13.52%
ROICexc growth 5Y5.5%
OM growth 3Y-11.53%
OM growth 5Y1.8%
PM growth 3Y-2.52%
PM growth 5Y14.63%
GM growth 3Y-7.09%
GM growth 5Y-2.42%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 55.6% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 3.44 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 1.86 |
F-Score5
WACC8.66%
ROIC/WACC0.67
Cap/Depr(3y)83.84%
Cap/Depr(5y)91.05%
Cap/Sales(3y)2.34%
Cap/Sales(5y)2.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)888.46%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%318.52%
EPS Next Y0.91%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.82%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%1.51%
Revenue Next Year11.92%
Revenue Next 2Y9.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y98200%
EBIT growth 3Y-14.06%
EBIT growth 5Y3.94%
EBIT Next Year57.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.87%
FCF growth 3Y-67.81%
FCF growth 5Y-35.4%
OCF growth 1Y8.83%
OCF growth 3Y-54.22%
OCF growth 5Y-24.28%