VALHI INC (VHI) Stock Fundamental Analysis
USA - NYSE:VHI - US9189052098 - Common Stock
13.53 USD
-0.34 (-2.45%)
We assign a fundamental rating of 5 out of 10 to VHI. VHI was compared to 82 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 is not valued too expensively and it also shows a decent growth rate.
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.
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
Looking at the Return On Assets, with a value of 3.55%, VHI is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.16%, VHI is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
VHI has a Return On Invested Capital of 4.26%. This is comparable to the rest of the industry: VHI outperforms 51.22% of its industry peers.
| 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 65.85% of its industry peers.
VHI's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 7.03%, VHI perfoms like the industry average, outperforming 41.46% of the companies in the same industry.
VHI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.94%, VHI is not doing good in the industry: 65.85% of the companies in the same industry are doing better.
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.
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.
VHI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.75, 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 1.75, VHI is in line with its industry, outperforming 45.12% of the companies in the same 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 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC0.51
WACC8.37%
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 79.27% 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.
The Quick ratio of VHI (1.35) 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.
The Revenue has been growing slightly by 4.04% in the past 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
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.
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
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 3.94, which indicates a rather cheap valuation of VHI.
95.12% of the companies in the same industry are more expensive than VHI, based on the Price/Earnings ratio.
VHI is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 3.68 indicates a rather cheap valuation of VHI.
Based on the Price/Forward Earnings ratio, VHI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.53. VHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.94 | ||
| Fwd PE | 3.68 |
4.2 Price Multiples
VHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VHI is cheaper than 96.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.86 |
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)4.35
PEG (5Y)0.28
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, VHI has a reasonable but not impressive dividend return.
VHI's Dividend Yield is a higher than the industry average which is at 3.99.
VHI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 9.28% of its income as dividend. This is a sustainable payout ratio.
DP9.28%
EPS Next 2Y6.52%
EPS Next 3YN/A
NYSE:VHI (11/3/2025, 8:04:00 PM)
13.53
-0.34 (-2.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners4.71%
Inst Owner Change-0.9%
Ins Owners0.17%
Ins Owner Change0.12%
Market Cap382.90M
Revenue(TTM)2.09B
Net Income(TTM)98.10M
Analysts42.5
Price Target12.24 (-9.53%)
Short Float %2.16%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 | 3.94 | ||
| Fwd PE | 3.68 | ||
| P/S | 0.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.36 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 3.86 |
EPS(TTM)3.43
EY25.35%
EPS(NY)3.68
Fwd EY27.17%
FCF(TTM)-4.32
FCFYN/A
OCF(TTM)-2.64
OCFYN/A
SpS73.98
BVpS37.86
TBVpS24.35
PEG (NY)4.35
PEG (5Y)0.28
Graham Number54.06
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
ROICexgc growth 3Y-13.32%
ROICexgc 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 | 1.75 |
F-Score3
WACC8.37%
ROIC/WACC0.51
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%
VALHI INC / VHI FAQ
What is the fundamental rating for VHI stock?
ChartMill assigns a fundamental rating of 5 / 10 to VHI.
Can you provide the valuation status for VALHI INC?
ChartMill assigns a valuation rating of 6 / 10 to VALHI INC (VHI). This can be considered as Fairly Valued.
Can you provide the profitability details for VALHI INC?
VALHI INC (VHI) has a profitability rating of 5 / 10.
What are the PE and PB ratios of VALHI INC (VHI) stock?
The Price/Earnings (PE) ratio for VALHI INC (VHI) is 3.94 and the Price/Book (PB) ratio is 0.36.
Is the dividend of VALHI INC sustainable?
The dividend rating of VALHI INC (VHI) is 5 / 10 and the dividend payout ratio is 9.28%.