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. 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
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.
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 Return On Equity of 11.02%. This is in the better half of the industry: VHI outperforms 76.47% of its industry peers.
With a Return On Invested Capital value of 5.83%, VHI perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| 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.
VHI has a Operating Margin (9.31%) which is in line with its industry peers.
VHI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.90%, VHI is doing worse than 61.18% of the companies in the same industry.
VHI's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VHI is destroying value.
VHI has about the same amout of shares outstanding than it did 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
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.
The Altman-Z score of VHI (1.87) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.49 indicates that VHI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.49, VHI is doing good in 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/WACC0.67
WACC8.65%
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.
VHI has a better Current ratio (2.67) 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.
The Quick ratio of VHI (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
VHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 888.46%, which is quite impressive.
The Earnings Per Share has been growing by 14.04% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.82% in the past 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
VHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
Based on estimates for the next years, VHI will show a quite strong growth in Revenue. The Revenue will grow by 9.77% on average per year.
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
A Price/Earnings ratio of 4.45 indicates a rather cheap valuation of VHI.
97.65% 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 27.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.97 indicates a rather cheap valuation of VHI.
Based on the Price/Forward Earnings ratio, VHI is valued cheaply inside the industry as 97.65% of the companies are valued more expensively.
VHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.45 | ||
| Fwd PE | 4.97 |
4.2 Price Multiples
VHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VHI is cheaper than 96.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.48 |
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)4.91
PEG (5Y)0.32
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 3.57.
VHI's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| 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
7.77% of the earnings are spent on dividend by VHI. This is a low number and sustainable payout ratio.
DP7.77%
EPS Next 2Y6.52%
EPS Next 3YN/A
NYSE:VHI (7/7/2025, 8:04:00 PM)
18.26
+0.16 (+0.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.97%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.1%
Market Cap516.58M
Analysts42.5
Price Target12.24 (-32.97%)
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 | 4.45 | ||
| Fwd PE | 4.97 | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.49 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 3.48 |
EPS(TTM)4.1
EY22.45%
EPS(NY)3.68
Fwd EY20.13%
FCF(TTM)-3.59
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS74.68
BVpS37.56
TBVpS24.04
PEG (NY)4.91
PEG (5Y)0.32
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
WACC8.65%
ROIC/WACC0.67
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%