VALHI INC (VHI) Stock Fundamental Analysis
USA - NYSE:VHI - US9189052098 - Common Stock
16.43 USD
-0.04 (-0.24%)
16.43 USD
0 (0%)
Overall VHI gets a fundamental rating of 5 out of 10. We evaluated VHI against 83 industry peers in the Chemicals industry. While VHI is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
VHI had a negative operating cash flow in the past year.
VHI had positive earnings in 4 of the past 5 years.
VHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VHI (3.55%) is better than 71.08% of its industry peers.
The Return On Equity of VHI (9.16%) is better than 74.70% of its industry peers.
The Return On Invested Capital of VHI (4.26%) is comparable to the rest of the 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
The Profit Margin of VHI (4.69%) is better than 66.27% of its industry peers.
In the last couple of years the Profit Margin of VHI has grown nicely.
VHI has a Operating Margin (7.03%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VHI has grown nicely.
Looking at the Gross Margin, with a value of 19.94%, VHI is doing worse than 66.27% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VHI 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
Based on the Altman-Z score of 1.78, we must say that VHI is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VHI (1.78) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.51 indicates that 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 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
WACC8.74%
2.3 Liquidity
A Current Ratio of 2.83 indicates that VHI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.83, VHI is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 852.78% over the past year.
Measured over the past years, VHI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.04% on average per year.
Looking at the last year, VHI shows a small growth in Revenue. The Revenue has grown by 4.04% in the last year.
The Revenue has been growing slightly by 2.10% on average over the past years.
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
VHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.52% yearly.
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
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 4.79, the valuation of VHI can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of VHI indicates a rather cheap valuation: VHI is cheaper than 96.39% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. VHI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.47, the valuation of VHI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VHI indicates a rather cheap valuation: VHI is cheaper than 98.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, VHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.79 | ||
| Fwd PE | 4.47 |
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 | 4.24 |
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)5.28
PEG (5Y)0.34
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
VHI's Dividend Yield is comparable with the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.38, VHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
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
16.43
-0.04 (-0.24%)
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 Cap464.97M
Analysts42.5
Price Target12.24 (-25.5%)
Short Float %2.24%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 | 4.79 | ||
| Fwd PE | 4.47 | ||
| P/S | 0.22 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.43 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 4.24 |
EPS(TTM)3.43
EY20.88%
EPS(NY)3.68
Fwd EY22.38%
FCF(TTM)-4.32
FCFYN/A
OCF(TTM)-2.64
OCFYN/A
SpS73.98
BVpS37.86
TBVpS24.35
PEG (NY)5.28
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
WACC8.74%
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%