VALHI INC (VHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VHI - US9189052098 - Common Stock
12.72 USD
+0.32 (+2.58%)
Taking everything into account, VHI scores 4 out of 10 in our fundamental rating. VHI was compared to 82 industry peers in the Chemicals industry. VHI has an average financial health and profitability rating. VHI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VHI was profitable.
In the past year VHI has reported a negative cash flow from operations.
VHI had positive earnings in 4 of the past 5 years.
In the past 5 years VHI always reported a positive cash flow from operatings.
1.2 Ratios
VHI has a Return On Assets (0.68%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 1.76%, VHI is in line with its industry, outperforming 58.54% of the companies in the same industry.
VHI has a Return On Invested Capital (2.61%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 1.76% | ||
| ROIC | 2.61% |
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
VHI has a Profit Margin (0.89%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VHI has grown nicely.
VHI has a Operating Margin of 4.49%. This is comparable to the rest of the industry: VHI outperforms 40.24% of its industry peers.
VHI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.53%, VHI is doing worse than 67.07% of the companies in the same industry.
In the last couple of years the Gross Margin of VHI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.49% | ||
| PM (TTM) | 0.89% | ||
| GM | 17.53% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VHI is destroying value.
Compared to 1 year ago, VHI has about the same amount of shares outstanding.
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
VHI has an Altman-Z score of 1.72. This is a bad value and indicates that VHI is not financially healthy and even has some risk of bankruptcy.
VHI has a Altman-Z score (1.72) which is in line with its industry peers.
A Debt/Equity ratio of 0.63 indicates that VHI is somewhat dependend on debt financing.
The Debt to Equity ratio of VHI (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.31
WACC8.5%
2.3 Liquidity
A Current Ratio of 3.64 indicates that VHI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.64, VHI belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
VHI has a Quick Ratio of 1.76. This is a normal value and indicates that VHI is financially healthy and should not expect problems in meeting its short term obligations.
VHI has a better Quick ratio (1.76) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.64 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
VHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.75%.
Measured over the past years, VHI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.04% on average per year.
Looking at the last year, VHI shows a decrease in Revenue. The Revenue has decreased by -0.65% in the last year.
Measured over the past years, VHI shows a small growth in Revenue. The Revenue has been growing by 2.10% on average per year.
EPS 1Y (TTM)-57.75%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%-116.42%
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%-5.64%
3.2 Future
The Earnings Per Share is expected to grow by 6.52% on average over the next years.
The Revenue is expected to grow by 9.77% on average over the next years. This is quite good.
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.
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
The Price/Earnings ratio is 11.67, which indicates a very decent valuation of VHI.
80.49% of the companies in the same industry are more expensive than VHI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of VHI to the average of the S&P500 Index (26.54), we can say VHI is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.46, the valuation of VHI can be described as very cheap.
Based on the Price/Forward Earnings ratio, VHI is valued cheaper than 100.00% of the companies in the same industry.
VHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 3.46 |
4.2 Price Multiples
93.90% of the companies in the same industry are more expensive than VHI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)12.87
PEG (5Y)0.83
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
The stock price of VHI dropped by -21.38% 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 3.98, VHI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, VHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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
VHI pays out 49.46% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.46%
EPS Next 2Y6.52%
EPS Next 3YN/A
NYSE:VHI (12/12/2025, 8:06:32 PM)
12.72
+0.32 (+2.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.52%
Inst Owner Change-3.85%
Ins Owners0.17%
Ins Owner Change0%
Market Cap359.98M
Revenue(TTM)2.06B
Net Income(TTM)18.40M
Analysts42.5
Price Target12.24 (-3.77%)
Short Float %2.47%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend0.32
Dividend Growth(5Y)-19.61%
DP49.46%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-117.69%
Min EPS beat(2)-139.27%
Max EPS beat(2)-96.1%
EPS beat(4)1
Avg EPS beat(4)-53.49%
Min EPS beat(4)-139.27%
Max EPS beat(4)32.23%
EPS beat(8)4
Avg EPS beat(8)-378.1%
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 | 11.67 | ||
| Fwd PE | 3.46 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.34 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)1.09
EY8.57%
EPS(NY)3.68
Fwd EY28.9%
FCF(TTM)-4.89
FCFYN/A
OCF(TTM)-3.19
OCFYN/A
SpS72.91
BVpS37.01
TBVpS23.51
PEG (NY)12.87
PEG (5Y)0.83
Graham Number30.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 1.76% | ||
| ROCE | 3.95% | ||
| ROIC | 2.61% | ||
| ROICexc | 2.83% | ||
| ROICexgc | 3.44% | ||
| OM | 4.49% | ||
| PM (TTM) | 0.89% | ||
| GM | 17.53% | ||
| 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
ROICexgc growth 3Y-13.32%
ROICexgc 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-Score3
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 74.88% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 1.66 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.64 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 1.72 |
F-Score3
WACC8.5%
ROIC/WACC0.31
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)-57.75%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%-116.42%
EPS Next Y0.91%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.65%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%-5.64%
Revenue Next Year11.92%
Revenue Next 2Y9.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-9.3%
EBIT growth 3Y-14.06%
EBIT growth 5Y3.94%
EBIT Next Year57.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-18.88%
FCF growth 3Y-67.81%
FCF growth 5Y-35.4%
OCF growth 1Y-66.42%
OCF growth 3Y-54.22%
OCF growth 5Y-24.28%
VALHI INC / VHI FAQ
What is the fundamental rating for VHI stock?
ChartMill assigns a fundamental rating of 4 / 10 to VHI.
Can you provide the valuation status for VALHI INC?
ChartMill assigns a valuation rating of 5 / 10 to VALHI INC (VHI). This can be considered as Fairly Valued.
Can you provide the profitability details for VALHI INC?
VALHI INC (VHI) has a profitability rating of 4 / 10.
What are the PE and PB ratios of VALHI INC (VHI) stock?
The Price/Earnings (PE) ratio for VALHI INC (VHI) is 11.67 and the Price/Book (PB) ratio is 0.34.
Is the dividend of VALHI INC sustainable?
The dividend rating of VALHI INC (VHI) is 4 / 10 and the dividend payout ratio is 49.46%.