VALHI INC (VHI) Stock Fundamental Analysis
NYSE:VHI - New York Stock Exchange, Inc. - US9189052098 - Common Stock - Currency: USD
VHI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and the financial health of VHI get a neutral evaluation. Nothing too spectacular is happening here. VHI has a correct valuation and a medium growth rate.
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.
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
With a decent Return On Assets value of 4.25%, VHI is doing good in 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.
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
The Profit Margin of VHI (5.54%) is better than 69.41% of its industry peers.
In the last couple of years the Profit Margin of VHI has grown nicely.
VHI's Operating Margin of 9.31% is in line compared to the rest of the industry. VHI outperforms 52.94% of its industry peers.
In the last couple of years the Operating Margin of VHI has grown nicely.
VHI has a Gross Margin of 21.90%. This is in the lower half of the industry: VHI underperforms 61.18% of its industry peers.
In the last couple of years the Gross Margin of VHI has declined.
| 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.
The number of shares outstanding for VHI remains at a similar level compared to 5 years ago.
VHI has a worse debt/assets ratio than last year.
2.2 Solvency
VHI has an Altman-Z score of 1.86. 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 (1.86) which 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.
The Debt to Equity ratio of VHI (0.49) is better than 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.86 |
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's Current ratio of 2.67 is fine compared to the rest of the industry. VHI outperforms 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 of 1.29. This is comparable to the rest of the industry: VHI outperforms 54.12% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 7.82% in the past year.
Measured over the past years, VHI shows a small growth in Revenue. The Revenue has been growing by 2.10% on average per year.
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
Based on estimates for the next years, VHI will show a small growth in Earnings Per Share. The EPS will grow by 6.52% on average per year.
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
With a Price/Earnings ratio of 4.22, the valuation of VHI can be described as very cheap.
VHI's Price/Earnings ratio is rather cheap when compared to the industry. VHI is cheaper than 97.65% of the companies in the same industry.
VHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
VHI is valuated cheaply with a Price/Forward Earnings ratio of 4.70.
Based on the Price/Forward Earnings ratio, VHI is valued cheaply inside the industry as 98.82% of the companies are valued more expensively.
VHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.22 | ||
| Fwd PE | 4.7 |
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 | 3.38 |
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)4.65
PEG (5Y)0.3
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VHI has a Yearly Dividend Yield of 1.92%.
VHI's Dividend Yield is comparable with the industry average which is at 3.69.
VHI's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
VHI pays out 7.77% of its income as dividend. This is a sustainable payout ratio.
DP7.77%
EPS Next 2Y6.52%
EPS Next 3YN/A
17.29
+1.13 (+6.99%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.97%
Inst Owner Change6.34%
Ins Owners0.17%
Ins Owner Change0.1%
Market Cap489.13M
Analysts42.5
Price Target12.24 (-29.21%)
Short Float %2.08%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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 | 4.22 | ||
| Fwd PE | 4.7 | ||
| P/S | 0.23 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.46 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)4.1
EY23.71%
EPS(NY)3.68
Fwd EY21.26%
FCF(TTM)-3.59
FCFYN/A
OCF(TTM)-2.23
OCFYN/A
SpS74.68
BVpS37.56
TBVpS24.04
PEG (NY)4.65
PEG (5Y)0.3
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 | 1.86 |
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%