VALHI INC (VHI) Stock Fundamental Analysis
USA - NYSE:VHI - US9189052098 - Common Stock
13.92 USD
+0.72 (+5.45%)
VHI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. There are concerns on the financial health of VHI while its profitability can be described as average. VHI is not valued too expensively and it also shows a decent 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.
Of the past 5 years VHI 4 years were profitable.
In the past 5 years VHI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.55%, VHI is doing good in 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.
Looking at the Return On Invested Capital, with a value of 4.26%, VHI is in line with its industry, outperforming 51.22% of the companies in the same 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 65.85% of the companies in the same industry.
In the last couple of years the Profit Margin of VHI has grown nicely.
VHI's Operating Margin of 7.03% is in line compared to the rest of the industry. VHI outperforms 41.46% of its industry peers.
In the last couple of years the Operating Margin of VHI has grown nicely.
VHI's Gross Margin of 19.94% is on the low side compared to the rest of the industry. VHI is outperformed by 65.85% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VHI is destroying value.
Compared to 1 year ago, VHI has about the same amount of shares outstanding.
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 1.75. This is a bad value and indicates that VHI is not financially healthy and even has some risk of bankruptcy.
VHI has a Altman-Z score (1.75) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.51 indicates that VHI is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.51, VHI is doing good in the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC0.51
WACC8.3%
2.3 Liquidity
A Current Ratio of 2.83 indicates that VHI has no problem at all paying its short term obligations.
The Current ratio of VHI (2.83) is better than 79.27% of its industry peers.
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 has a Quick ratio of 1.35. This is comparable to the rest of the industry: VHI outperforms 56.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
VHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.75%.
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 grown by 9.53% in the past year. This is quite good.
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)-57.75%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%-116.42%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-2.86%
Revenue growth 5Y2.1%
Sales Q2Q%-5.64%
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.
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.
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
VHI is valuated correctly with a Price/Earnings ratio of 12.77.
75.61% of the companies in the same industry are more expensive than VHI, based on the Price/Earnings ratio.
VHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
A Price/Forward Earnings ratio of 3.79 indicates a rather cheap valuation of VHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VHI indicates a rather cheap valuation: VHI is cheaper than 98.78% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. VHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 3.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VHI is valued cheaply inside the industry as 96.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.82 |
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)14.09
PEG (5Y)0.91
EPS Next 2Y6.52%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, VHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.11, VHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, VHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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
NYSE:VHI (11/7/2025, 8:24:50 PM)
13.92
+0.72 (+5.45%)
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 Cap393.94M
Revenue(TTM)2.10B
Net Income(TTM)98.10M
Analysts42.5
Price Target12.24 (-12.07%)
Short Float %2.16%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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 | 12.77 | ||
| Fwd PE | 3.79 | ||
| P/S | 0.19 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.37 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 3.82 |
EPS(TTM)1.09
EY7.83%
EPS(NY)3.68
Fwd EY26.41%
FCF(TTM)-4.32
FCFYN/A
OCF(TTM)-2.64
OCFYN/A
SpS73.98
BVpS37.86
TBVpS24.35
PEG (NY)14.09
PEG (5Y)0.91
Graham Number30.47
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
WACC8.3%
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)-57.75%
EPS 3Y-5.31%
EPS 5Y14.04%
EPS Q2Q%-116.42%
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%-5.64%
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 4 / 10 to VHI.
Can you provide the valuation status for VALHI INC?
ChartMill assigns a valuation rating of 5 / 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 12.77 and the Price/Book (PB) ratio is 0.37.
Is the dividend of VALHI INC sustainable?
The dividend rating of VALHI INC (VHI) is 4 / 10 and the dividend payout ratio is 9.28%.