VALHI INC (VHI) Stock Fundamental Analysis
NYSE:VHI - New York Stock Exchange, Inc. - US9189052098 - Common Stock - Currency: USD
Overall VHI gets a fundamental rating of 5 out of 10. We evaluated VHI against 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
In the past year VHI was profitable.
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
VHI has a better Return On Assets (4.25%) than 74.12% of its industry peers.
The Return On Equity of VHI (11.02%) is better than 76.47% of its industry peers.
The Return On Invested Capital of VHI (5.83%) is comparable to the rest of the 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
With a decent Profit Margin value of 5.54%, VHI is doing good in the industry, outperforming 69.41% of the companies in the same industry.
VHI's Profit Margin has improved in the last couple of years.
VHI has a Operating Margin (9.31%) which is comparable to the rest of the industry.
VHI's Operating Margin has improved in the last couple of years.
VHI's Gross Margin of 21.90% is on the low side compared to the rest of the industry. VHI is outperformed by 62.35% of its industry peers.
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
VHI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, VHI has a worse debt to assets ratio.
2.2 Solvency
VHI has an Altman-Z score of 1.83. This is not the best score and indicates that VHI is in the grey zone with still only limited risk for bankruptcy at the moment.
VHI has a Altman-Z score (1.83) which is comparable to the rest of the industry.
VHI has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
VHI's Debt to Equity ratio of 0.49 is fine compared to the rest of the industry. VHI outperforms 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.67
WACC8.67%
2.3 Liquidity
A Current Ratio of 2.67 indicates that VHI has no problem at all paying its short term obligations.
The Current ratio of VHI (2.67) is better than 76.47% of its industry peers.
A Quick Ratio of 1.29 indicates that VHI should not have too much problems paying its short term obligations.
VHI has a Quick ratio (1.29) which is in line with its industry peers.
| 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.
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 7.82%.
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.
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.
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
The Price/Earnings ratio is 3.54, which indicates a rather cheap valuation of VHI.
Compared to the rest of the industry, the Price/Earnings ratio of VHI indicates a rather cheap valuation: VHI is cheaper than 97.65% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VHI to the average of the S&P500 Index (26.52), we can say VHI is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.95, the valuation of VHI can be described as very cheap.
98.82% of the companies in the same industry are more expensive than VHI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.25, VHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.54 | ||
| Fwd PE | 3.95 |
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 | 3.08 |
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)3.91
PEG (5Y)0.25
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, VHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.72, VHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, VHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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
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
14.53
-0.24 (-1.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.64%
Inst Owner Change6.34%
Ins Owners0.14%
Ins Owner Change0.1%
Market Cap411.05M
Analysts42.5
Price Target12.24 (-15.76%)
Short Float %2.44%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)1.46%
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 | 3.54 | ||
| Fwd PE | 3.95 | ||
| P/S | 0.19 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.39 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 3.08 |
EPS(TTM)4.1
EY28.22%
EPS(NY)3.68
Fwd EY25.3%
FCF(TTM)-3.59
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS74.68
BVpS37.56
TBVpS24.04
PEG (NY)3.91
PEG (5Y)0.25
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 | 1.83 |
F-Score5
WACC8.67%
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%