VALHI INC (VHI) Stock Fundamental Analysis
NYSE:VHI - New York Stock Exchange, Inc. - US9189052098 - Common Stock - Currency: USD
VHI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. VHI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VHI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
VHI had positive earnings in the past year.
VHI had a positive operating cash flow in the past year.
VHI had positive earnings in 4 of the past 5 years.
VHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VHI's Return On Assets of 3.20% is in line compared to the rest of the industry. VHI outperforms 59.04% of its industry peers.
With a decent Return On Equity value of 8.71%, VHI is doing good in the industry, outperforming 65.06% of the companies in the same industry.
With a Return On Invested Capital value of 3.58%, VHI perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 8.71% | ||
| ROIC | 3.58% |
ROA(3y)2.32%
ROA(5y)2.13%
ROE(3y)7.82%
ROE(5y)7.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of VHI (4.29%) is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 4.92%, VHI is doing worse than 63.86% of the companies in the same industry.
Looking at the Gross Margin, with a value of 18.82%, VHI is doing worse than 68.67% of the companies in the same industry.
VHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.92% | ||
| PM (TTM) | 4.29% | ||
| GM | 18.82% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.96%
GM growth 5Y-17.54%
2. Health
2.1 Basic Checks
VHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VHI has about the same amout of shares outstanding than it did 1 year ago.
VHI has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for VHI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that VHI is in the distress zone and has some risk of bankruptcy.
VHI has a Altman-Z score of 1.71. This is comparable to the rest of the industry: VHI outperforms 43.37% of its industry peers.
The Debt to FCF ratio of VHI is 16.04, which is on the high side as it means it would take VHI, 16.04 years of fcf income to pay off all of its debts.
VHI's Debt to FCF ratio of 16.04 is in line compared to the rest of the industry. VHI outperforms 44.58% of its industry peers.
VHI has a Debt/Equity ratio of 0.52. This is a neutral value indicating VHI is somewhat dependend on debt financing.
The Debt to Equity ratio of VHI (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 16.04 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.44
WACC8.22%
2.3 Liquidity
A Current Ratio of 2.79 indicates that VHI has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.79, VHI is doing good in the industry, outperforming 77.11% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that VHI should not have too much problems paying its short term obligations.
VHI's Quick ratio of 1.65 is fine compared to the rest of the industry. VHI outperforms 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
VHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 389.89%, which is quite impressive.
Looking at the last year, VHI shows a quite strong growth in Revenue. The Revenue has grown by 10.99% in the last year.
Measured over the past years, VHI shows a small growth in Revenue. The Revenue has been growing by 1.09% on average per year.
EPS 1Y (TTM)389.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1057.14%
Revenue 1Y (TTM)10.99%
Revenue growth 3Y1.28%
Revenue growth 5Y1.09%
Sales Q2Q%13.8%
3.2 Future
Based on estimates for the next years, VHI will show a very strong growth in Earnings Per Share. The EPS will grow by 120.72% on average per year.
The Revenue is expected to grow by 10.78% on average over the next years. This is quite good.
EPS Next Y694.7%
EPS Next 2Y212.8%
EPS Next 3Y120.72%
EPS Next 5YN/A
Revenue Next Year12.81%
Revenue Next 2Y12.37%
Revenue Next 3Y10.78%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.17 indicates a rather cheap valuation of VHI.
Based on the Price/Earnings ratio, VHI is valued cheaper than 95.18% of the companies in the same industry.
VHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
VHI is valuated cheaply with a Price/Forward Earnings ratio of 5.66.
Based on the Price/Forward Earnings ratio, VHI is valued cheaply inside the industry as 97.59% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VHI to the average of the S&P500 Index (22.70), we can say VHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 5.66 |
4.2 Price Multiples
95.18% of the companies in the same industry are more expensive than VHI, based on the Enterprise Value to EBITDA ratio.
VHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VHI is cheaper than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.74 | ||
| EV/EBITDA | 4.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VHI's earnings are expected to grow with 120.72% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y212.8%
EPS Next 3Y120.72%
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 1.70%. Purely for dividend investing, there may be better candidates out there.
The stock price of VHI dropped by -30.70% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.28, VHI has a dividend in line with its industry peers.
VHI's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of VHI decreases each year by -19.30%.
VHI has been paying a dividend for at least 10 years, so it has a reliable track record.
VHI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.3%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
VHI pays out 10.21% of its income as dividend. This is a sustainable payout ratio.
DP10.21%
EPS Next 2Y212.8%
EPS Next 3Y120.72%
NYSE:VHI (2/21/2025, 8:04:00 PM)
18.51
-0.26 (-1.39%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.64%
Inst Owner Change-84.58%
Ins Owners0.14%
Ins Owner Change0%
Market Cap523.65M
Analysts42.5
Price Target20.4 (10.21%)
Short Float %2.83%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend0.32
Dividend Growth(5Y)-19.3%
DP10.21%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)120.97%
Min EPS beat(2)99.61%
Max EPS beat(2)142.33%
EPS beat(4)3
Avg EPS beat(4)-702.72%
Min EPS beat(4)-3241.58%
Max EPS beat(4)188.78%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
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 | 7.17 | ||
| Fwd PE | 5.66 | ||
| P/S | 0.25 | ||
| P/FCF | 13.74 | ||
| P/OCF | 8.41 | ||
| P/B | 0.51 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 4.9 |
EPS(TTM)2.58
EY13.94%
EPS(NY)3.27
Fwd EY17.66%
FCF(TTM)1.35
FCFY7.28%
OCF(TTM)2.2
OCFY11.9%
SpS73.41
BVpS36.14
TBVpS22.63
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 8.71% | ||
| ROCE | 4.47% | ||
| ROIC | 3.58% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 5.16% | ||
| OM | 4.92% | ||
| PM (TTM) | 4.29% | ||
| GM | 18.82% | ||
| FCFM | 1.83% |
ROA(3y)2.32%
ROA(5y)2.13%
ROE(3y)7.82%
ROE(5y)7.85%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.96%
GM growth 5Y-17.54%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 16.04 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 37.46% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 37.37% | ||
| Profit Quality | 42.76% | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 1.71 |
F-Score6
WACC8.22%
ROIC/WACC0.44
Cap/Depr(3y)104.43%
Cap/Depr(5y)102.88%
Cap/Sales(3y)2.79%
Cap/Sales(5y)3.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)389.89%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1057.14%
EPS Next Y694.7%
EPS Next 2Y212.8%
EPS Next 3Y120.72%
EPS Next 5YN/A
Revenue 1Y (TTM)10.99%
Revenue growth 3Y1.28%
Revenue growth 5Y1.09%
Sales Q2Q%13.8%
Revenue Next Year12.81%
Revenue Next 2Y12.37%
Revenue Next 3Y10.78%
Revenue Next 5YN/A
EBIT growth 1Y359.14%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1520%
EBIT Next 3Y167.46%
EBIT Next 5YN/A
FCF growth 1Y-83.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-79.12%
OCF growth 3Y-73.29%
OCF growth 5Y-55.46%