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 only an average score on both its financial health and profitability. VHI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VHI had positive earnings in the past year.
VHI had a positive operating cash flow in the past year.
Of the past 5 years VHI 4 years were profitable.
Each year in the past 5 years VHI had a positive operating cash flow.
1.2 Ratios
VHI's Return On Assets of 3.86% is fine compared to the rest of the industry. VHI outperforms 71.76% of its industry peers.
VHI has a better Return On Equity (10.42%) than 74.12% of its industry peers.
The Return On Invested Capital of VHI (5.22%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 10.42% | ||
| ROIC | 5.22% |
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
Looking at the Profit Margin, with a value of 5.13%, VHI is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
In the last couple of years the Profit Margin of VHI has grown nicely.
Looking at the Operating Margin, with a value of 8.09%, VHI is in line with its industry, outperforming 47.06% of the companies in the same industry.
In the last couple of years the Operating Margin of VHI has grown nicely.
VHI's Gross Margin of 20.26% is on the low side compared to the rest of the industry. VHI is outperformed by 64.71% of its industry peers.
VHI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.09% | ||
| PM (TTM) | 5.13% | ||
| GM | 20.26% |
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.
The number of shares outstanding for VHI remains at a similar level compared to 5 years ago.
The debt/assets ratio for VHI is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that VHI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.76, VHI is in line with its industry, outperforming 44.71% of the companies in the same industry.
The Debt to FCF ratio of VHI is 42.68, which is on the high side as it means it would take VHI, 42.68 years of fcf income to pay off all of its debts.
VHI has a Debt to FCF ratio of 42.68. This is in the lower half of the industry: VHI underperforms 61.18% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that VHI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.47, VHI is doing good in the industry, outperforming 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 42.68 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.61
WACC8.51%
2.3 Liquidity
VHI has a Current Ratio of 2.26. This indicates that VHI is financially healthy and has no problem in meeting its short term obligations.
VHI has a Current ratio of 2.26. This is in the better half of the industry: VHI outperforms 63.53% of its industry peers.
VHI has a Quick Ratio of 1.19. 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 (1.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.19 |
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.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.53%.
The Revenue has been growing slightly by 2.10% on average over the past years.
EPS 1Y (TTM)888.46%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%318.52%
Revenue 1Y (TTM)9.53%
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.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 4.23, the valuation of VHI can be described as very cheap.
Based on the Price/Earnings ratio, VHI is valued cheaply inside the industry as 97.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.83, VHI is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.72, 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 97.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, VHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.23 | ||
| Fwd PE | 4.72 |
4.2 Price Multiples
96.47% of the companies in the same industry are more expensive than VHI, based on the Enterprise Value to EBITDA ratio.
VHI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.16 | ||
| EV/EBITDA | 2.99 |
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)4.67
PEG (5Y)0.3
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
VHI's Dividend Yield is comparable with the industry average which is at 3.80.
Compared to the average S&P500 Dividend Yield of 2.41, VHI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 8.43% of its income as dividend. This is a sustainable payout ratio.
DP8.43%
EPS Next 2Y6.52%
EPS Next 3YN/A
17.34
-0.21 (-1.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.64%
Inst Owner Change5.59%
Ins Owners0.14%
Ins Owner Change0%
Market Cap490.55M
Analysts42.5
Price Target20.4 (17.65%)
Short Float %2.13%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend0.32
Dividend Growth(5Y)-19.61%
DP8.43%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)65.92%
Min EPS beat(2)32.23%
Max EPS beat(2)99.61%
EPS beat(4)3
Avg EPS beat(4)-741.85%
Min EPS beat(4)-3241.58%
Max EPS beat(4)142.33%
EPS beat(8)4
Avg EPS beat(8)-585.39%
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 | 4.23 | ||
| Fwd PE | 4.72 | ||
| P/S | 0.23 | ||
| P/FCF | 37.16 | ||
| P/OCF | 11.12 | ||
| P/B | 0.47 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 2.99 |
EPS(TTM)4.1
EY23.64%
EPS(NY)3.68
Fwd EY21.2%
FCF(TTM)0.47
FCFY2.69%
OCF(TTM)1.56
OCFY8.99%
SpS74.4
BVpS36.62
TBVpS23.11
PEG (NY)4.67
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 10.42% | ||
| ROCE | 7.9% | ||
| ROIC | 5.22% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 7.9% | ||
| OM | 8.09% | ||
| PM (TTM) | 5.13% | ||
| GM | 20.26% | ||
| FCFM | 0.63% |
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-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 42.68 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 46.33% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 3.78 | ||
| Cash Conversion | 18.61% | ||
| Profit Quality | 12.22% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.76 |
F-Score6
WACC8.51%
ROIC/WACC0.61
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)9.53%
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 1Y628.88%
EBIT growth 3Y-14.06%
EBIT growth 5Y3.94%
EBIT Next Year57.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y128.95%
FCF growth 3Y-67.81%
FCF growth 5Y-35.4%
OCF growth 1Y1420.69%
OCF growth 3Y-54.22%
OCF growth 5Y-24.28%