VALHI INC (VHI) Stock Fundamental Analysis
USA - NYSE:VHI - US9189052098 - Common Stock
14.89 USD
+0.27 (+1.85%)
14.5165 USD
-0.37 (-2.51%)
Taking everything into account, VHI scores 5 out of 10 in our fundamental rating. VHI was compared to 82 industry peers in the Chemicals industry. VHI has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
VHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.55%, VHI is doing good in the industry, outperforming 70.73% of the companies in the same industry.
With a decent Return On Equity value of 9.16%, VHI is doing good in the industry, outperforming 75.61% of the companies in the same industry.
With a Return On Invested Capital value of 4.26%, VHI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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 65.85% of the companies in the same industry.
VHI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.03%, VHI is in line with its industry, outperforming 40.24% of the companies in the same industry.
VHI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 19.94%, VHI is doing worse than 65.85% of the companies in the same industry.
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 1.76. 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 (1.76) which is in line with its industry peers.
VHI has a Debt/Equity ratio of 0.51. This is a neutral value indicating 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 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACC0.51
WACC8.4%
2.3 Liquidity
A Current Ratio of 2.83 indicates that VHI has no problem at all paying its short term obligations.
The Current ratio of VHI (2.83) is better than 78.05% of its industry peers.
A Quick Ratio of 1.35 indicates that VHI should not have too much problems paying its short term obligations.
VHI has a Quick ratio (1.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
VHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 852.78%, which is quite impressive.
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 4.04%.
VHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.10% yearly.
EPS 1Y (TTM)852.78%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%-95.71%
Revenue 1Y (TTM)4.04%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%-3.45%
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 4.34, the valuation of VHI can be described as very cheap.
Based on the Price/Earnings ratio, VHI is valued cheaper than 95.12% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, VHI is valued rather cheaply.
VHI is valuated cheaply with a Price/Forward Earnings ratio of 4.05.
Based on the Price/Forward Earnings ratio, VHI is valued cheaper than 98.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. VHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VHI is valued cheaper than 96.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.04 |
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)4.79
PEG (5Y)0.31
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 2.22%.
VHI's Dividend Yield is a higher than the industry average which is at 3.69.
Compared to an average S&P500 Dividend Yield of 2.31, VHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 9.28% of its income as dividend. This is a sustainable payout ratio.
DP9.28%
EPS Next 2Y6.52%
EPS Next 3YN/A
14.89
+0.27 (+1.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.71%
Inst Owner Change0.11%
Ins Owners0.17%
Ins Owner Change0.12%
Market Cap421.39M
Revenue(TTM)2.09B
Net Income(TTM)98.10M
Analysts42.5
Price Target12.24 (-17.8%)
Short Float %2.16%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 | 4.34 | ||
| Fwd PE | 4.05 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.39 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 4.04 |
EPS(TTM)3.43
EY23.04%
EPS(NY)3.68
Fwd EY24.69%
FCF(TTM)-4.32
FCFYN/A
OCF(TTM)-2.64
OCFYN/A
SpS73.98
BVpS37.86
TBVpS24.35
PEG (NY)4.79
PEG (5Y)0.31
Graham Number54.06
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 | 1.76 |
F-Score3
WACC8.4%
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)852.78%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%-95.71%
EPS Next Y0.91%
EPS Next 2Y6.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.04%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%-3.45%
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 6 / 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 4.34 and the Price/Book (PB) ratio is 0.39.
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%.