VALHI INC (VHI) Stock Fundamental Analysis
NYSE:VHI - US9189052098 - Common Stock
16.31 USD
-0.19 (-1.15%)
16.31 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. VHI has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
VHI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VHI had a positive operating cash flow.
1.2 Ratios
VHI has a better Return On Assets (3.55%) than 71.08% of its industry peers.
VHI has a Return On Equity of 9.16%. This is in the better half of the industry: VHI outperforms 74.70% of its industry peers.
VHI has a Return On Invested Capital (4.26%) which 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
With a decent Profit Margin value of 4.69%, VHI is doing good in the industry, outperforming 66.27% of the companies in the same industry.
VHI's Profit Margin has improved in the last couple of years.
The Operating Margin of VHI (7.03%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VHI has grown nicely.
VHI has a Gross Margin of 19.94%. This is in the lower half of the industry: VHI underperforms 66.27% of its industry peers.
In the last couple of years the Gross Margin of VHI has declined.
| 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.
VHI has about the same amout of shares outstanding than it did 1 year ago.
VHI has about the same amout of shares outstanding than it did 5 years ago.
VHI has a worse debt/assets ratio than last year.
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.
VHI's Altman-Z score of 1.78 is in line compared to the rest of the industry. VHI outperforms 45.78% of its industry peers.
VHI has a Debt/Equity ratio of 0.51. This is a neutral value indicating 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
WACC8.71%
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.
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.
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's Quick ratio of 1.35 is in line compared 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
The Earnings Per Share has grown by an impressive 852.78% 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 4.04%.
VHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.10% yearly.
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
The Earnings Per Share is expected to grow by 6.52% on average over the next years.
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
With a Price/Earnings ratio of 4.76, the valuation of VHI can be described as very cheap.
Based on the Price/Earnings ratio, VHI is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
VHI is valuated cheaply when we compare the Price/Earnings ratio to 27.13, which is the current average of the S&P500 Index.
VHI is valuated cheaply with a Price/Forward Earnings ratio of 4.44.
Based on the Price/Forward Earnings ratio, VHI is valued cheaply inside the industry as 98.80% of the companies are valued more expensively.
VHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.76 | ||
| Fwd PE | 4.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VHI is valued cheaply inside the industry as 95.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.23 |
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)5.25
PEG (5Y)0.34
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 1.94%.
VHI's Dividend Yield is a higher than the industry average which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.32, VHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
16.31
-0.19 (-1.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners5%
Inst Owner Change-7.36%
Ins Owners0.17%
Ins Owner Change0.1%
Market Cap461.57M
Analysts42.5
Price Target12.24 (-24.95%)
Short Float %2.12%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)-40%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.46%
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 | 4.76 | ||
| Fwd PE | 4.44 | ||
| P/S | 0.22 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.43 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 4.23 |
EPS(TTM)3.43
EY21.03%
EPS(NY)3.68
Fwd EY22.54%
FCF(TTM)-4.32
FCFYN/A
OCF(TTM)-2.64
OCFYN/A
SpS73.98
BVpS37.86
TBVpS24.35
PEG (NY)5.25
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
WACC8.71%
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%