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. Both the profitability and the financial health of VHI get a neutral evaluation. Nothing too spectacular is happening here. 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.
VHI had a negative operating cash flow in the past year.
Of the past 5 years VHI 4 years were profitable.
In the past 5 years VHI always reported a positive cash flow from operatings.
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.
VHI has a better Return On Equity (11.02%) than 76.47% of its industry peers.
VHI has a Return On Invested Capital of 5.83%. This is comparable 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
VHI's Profit Margin of 5.54% is fine compared to the rest of the industry. VHI outperforms 69.41% of its industry peers.
VHI's Profit Margin has improved in the last couple of years.
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.
VHI's Gross Margin of 21.90% is on the low side compared to the rest of the industry. VHI is outperformed by 61.18% of its industry peers.
In the last couple of years the Gross Margin of VHI has declined.
| 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.
The number of shares outstanding for VHI remains at a similar level compared to 5 years ago.
VHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.87 indicates that VHI is not a great score, but indicates only limited risk for bankruptcy at the moment.
VHI has a Altman-Z score (1.87) which is in line with its industry peers.
A Debt/Equity ratio of 0.49 indicates that VHI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.49, VHI is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.87 |
ROIC/WACC0.68
WACC8.62%
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.
The Current ratio of VHI (2.67) is better than 76.47% of its industry peers.
VHI has a Quick Ratio of 1.29. This is a normal value and indicates that VHI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.29, VHI is in line with its industry, outperforming 54.12% of the companies in the same 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.
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 small growth in Revenue. The Revenue has grown by 7.82% in the last year.
VHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.10% yearly.
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
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 4.41, the valuation of VHI can be described as very cheap.
Based on the Price/Earnings ratio, VHI is valued cheaper than 97.65% of the companies in the same industry.
VHI is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.92, the valuation of VHI can be described as very cheap.
Based on the Price/Forward Earnings ratio, VHI is valued cheaply inside the industry as 98.82% of the companies are valued more expensively.
VHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.41 | ||
| Fwd PE | 4.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VHI is valued cheaper than 96.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.46 |
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)4.87
PEG (5Y)0.31
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 1.77%. Purely for dividend investing, there may be better candidates out there.
VHI's Dividend Yield is comparable with the industry average which is at 3.58.
VHI's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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
VHI pays out 7.77% of its income as dividend. This is a sustainable payout ratio.
DP7.77%
EPS Next 2Y6.52%
EPS Next 3YN/A
NYSE:VHI (7/3/2025, 8:15:55 PM)
18.1
-0.17 (-0.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.97%
Inst Owner Change-52.64%
Ins Owners0.17%
Ins Owner Change0.1%
Market Cap512.05M
Analysts42.5
Price Target12.24 (-32.38%)
Short Float %2.08%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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)-40%
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 | 4.41 | ||
| Fwd PE | 4.92 | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.48 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 3.46 |
EPS(TTM)4.1
EY22.65%
EPS(NY)3.68
Fwd EY20.31%
FCF(TTM)-3.59
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS74.68
BVpS37.56
TBVpS24.04
PEG (NY)4.87
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 | 1.87 |
F-Score5
WACC8.62%
ROIC/WACC0.68
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%