VALHI INC (VHI) Stock Fundamental Analysis
USA - NYSE:VHI - US9189052098 - Common Stock
16.16 USD
-0.08 (-0.49%)
16.16 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VHI. VHI was compared to 83 industry peers in the Chemicals industry. VHI has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year VHI has reported a negative cash flow from operations.
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 71.08% 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 74.70% of the companies in the same industry.
With a Return On Invested Capital value of 4.26%, VHI perfoms like the industry average, outperforming 50.60% 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
VHI has a better Profit Margin (4.69%) than 66.27% of its industry peers.
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 40.96% of the companies in the same industry.
VHI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.94%, VHI is not doing good in the industry: 66.27% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VHI is destroying value.
Compared to 1 year ago, VHI has about the same amount of shares outstanding.
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
VHI has an Altman-Z score of 1.78. This is a bad value and indicates that VHI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.78, VHI is in line with its industry, outperforming 45.78% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that VHI is somewhat dependend on debt financing.
The Debt to Equity ratio of VHI (0.51) is better than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC0.49
WACC8.75%
2.3 Liquidity
VHI has a Current Ratio of 2.83. This indicates that VHI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VHI (2.83) is better than 79.52% of its industry peers.
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.
VHI has a Quick ratio of 1.35. This is comparable to the rest of the industry: VHI outperforms 54.22% of 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.
VHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.04% yearly.
VHI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.04%.
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)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
Based on estimates for the next years, VHI will show a small growth in Earnings Per Share. The EPS will grow by 6.52% on average per year.
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
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
The Price/Earnings ratio is 4.71, which indicates a rather cheap valuation of VHI.
96.39% of the companies in the same industry are more expensive than VHI, based on the Price/Earnings ratio.
VHI is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 4.40, which indicates a rather cheap valuation of VHI.
VHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. VHI is cheaper than 98.80% 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 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.71 | ||
| Fwd PE | 4.4 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.22 |
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)5.2
PEG (5Y)0.34
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 1.90%. Purely for dividend investing, there may be better candidates out there.
VHI's Dividend Yield is comparable with the industry average which is at 3.43.
VHI's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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
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
16.16
-0.08 (-0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners5%
Inst Owner Change-7.35%
Ins Owners0.17%
Ins Owner Change0.09%
Market Cap457.33M
Analysts42.5
Price Target12.24 (-24.26%)
Short Float %2.24%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 | 4.71 | ||
| Fwd PE | 4.4 | ||
| P/S | 0.22 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.43 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 4.22 |
EPS(TTM)3.43
EY21.23%
EPS(NY)3.68
Fwd EY22.75%
FCF(TTM)-4.32
FCFYN/A
OCF(TTM)-2.64
OCFYN/A
SpS73.98
BVpS37.86
TBVpS24.35
PEG (NY)5.2
PEG (5Y)0.34
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
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-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 | 1.78 |
F-Score3
WACC8.75%
ROIC/WACC0.49
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%