VALHI INC (VHI) Stock Fundamental Analysis
USA - NYSE:VHI - US9189052098 - Common Stock
13.09 USD
-0.46 (-3.39%)
We assign a fundamental rating of 5 out of 10 to VHI. VHI was compared to 82 industry peers in the Chemicals industry. Both the profitability and the financial health of VHI get a neutral evaluation. Nothing too spectacular is happening here. VHI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VHI had positive earnings in the past year.
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
With a decent Return On Assets value of 3.55%, VHI is doing good in the industry, outperforming 69.51% of the companies in the same industry.
VHI has a better Return On Equity (9.16%) than 76.83% of its industry peers.
VHI has a Return On Invested Capital (4.26%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 9.16% | ||
| ROIC | 4.26% |
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
With a decent Profit Margin value of 4.69%, VHI is doing good in the industry, outperforming 67.07% of the companies in the same industry.
VHI's Profit Margin has improved in the last couple of years.
VHI has a Operating Margin (7.03%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VHI has grown nicely.
With a Gross Margin value of 19.94%, VHI is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
VHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | 4.69% | ||
| GM | 19.94% |
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
VHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
VHI has an Altman-Z score of 1.75. 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 (1.75) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.51 indicates that VHI is somewhat dependend on debt financing.
VHI's Debt to Equity ratio of 0.51 is fine compared to the rest of the industry. VHI outperforms 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC0.51
WACC8.34%
2.3 Liquidity
A Current Ratio of 2.83 indicates that VHI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.83, VHI belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
VHI has a Quick Ratio of 1.35. This is a normal value and indicates that VHI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.35, VHI perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for VHI have decreased strongly by -57.75% in the last year.
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.
The Revenue has grown by 9.53% in the past year. This is quite good.
The Revenue has been growing slightly by 2.10% on average over the past years.
EPS 1Y (TTM)-57.75%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%-116.42%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%-5.64%
3.2 Future
VHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
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.
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
Based on the Price/Earnings ratio of 12.01, the valuation of VHI can be described as correct.
Based on the Price/Earnings ratio, VHI is valued a bit cheaper than the industry average as 76.83% of the companies are valued more expensively.
VHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 3.56 indicates a rather cheap valuation of VHI.
100.00% of the companies in the same industry are more expensive than VHI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.43. VHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 3.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VHI is valued cheaply inside the industry as 96.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.8 |
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)13.25
PEG (5Y)0.86
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 2.33%.
In the last 3 months the price of VHI has falen by -22.27%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VHI's Dividend Yield is a higher than the industry average which is at 3.95.
VHI's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of VHI decreases each year by -19.61%.
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)-19.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
9.28% of the earnings are spent on dividend by VHI. This is a low number and sustainable payout ratio.
DP9.28%
EPS Next 2Y6.52%
EPS Next 3YN/A
NYSE:VHI (11/12/2025, 8:04:00 PM)
13.09
-0.46 (-3.39%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.71%
Inst Owner Change0.27%
Ins Owners0.17%
Ins Owner Change0.12%
Market Cap370.45M
Revenue(TTM)2.10B
Net Income(TTM)98.10M
Analysts42.5
Price Target12.24 (-6.49%)
Short Float %2.16%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend0.32
Dividend Growth(5Y)-19.61%
DP9.28%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-53.46%
Min EPS beat(2)-96.1%
Max EPS beat(2)-10.82%
EPS beat(4)2
Avg EPS beat(4)6.23%
Min EPS beat(4)-96.1%
Max EPS beat(4)99.61%
EPS beat(8)4
Avg EPS beat(8)-573.12%
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 | 12.01 | ||
| Fwd PE | 3.56 | ||
| P/S | 0.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.35 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 3.8 |
EPS(TTM)1.09
EY8.33%
EPS(NY)3.68
Fwd EY28.09%
FCF(TTM)-4.32
FCFYN/A
OCF(TTM)-2.64
OCFYN/A
SpS73.98
BVpS37.86
TBVpS24.35
PEG (NY)13.25
PEG (5Y)0.86
Graham Number30.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 9.16% | ||
| ROCE | 6.45% | ||
| ROIC | 4.26% | ||
| ROICexc | 4.65% | ||
| ROICexgc | 5.69% | ||
| OM | 7.03% | ||
| PM (TTM) | 4.69% | ||
| GM | 19.94% | ||
| 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 | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 71.75% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.75 |
F-Score3
WACC8.34%
ROIC/WACC0.51
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)9.53%
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 1Y185.63%
EBIT growth 3Y-14.06%
EBIT growth 5Y3.94%
EBIT Next Year57.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22%
FCF growth 3Y-67.81%
FCF growth 5Y-35.4%
OCF growth 1Y15%
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 5 / 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 5 / 10.
What are the PE and PB ratios of VALHI INC (VHI) stock?
The Price/Earnings (PE) ratio for VALHI INC (VHI) is 12.01 and the Price/Book (PB) ratio is 0.35.
Is the dividend of VALHI INC sustainable?
The dividend rating of VALHI INC (VHI) is 5 / 10 and the dividend payout ratio is 9.28%.