VALHI INC (VHI)
US9189052098 - Common Stock
Taking everything into account, VHI scores 3 out of 10 in our fundamental rating. VHI was compared to 84 industry peers in the Chemicals industry. Both the profitability and financial health of VHI have multiple concerns. VHI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VHI was profitable.
In the past year VHI had a positive 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
VHI has a worse Return On Assets (-0.44%) than 69.05% of its industry peers.
VHI has a worse Return On Equity (-1.29%) than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -1.29% | ||
| ROIC | N/A |
ROA(3y)2.32%
ROA(5y)2.13%
ROE(3y)7.82%
ROE(5y)7.85%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VHI has a Gross Margin of 12.76%. This is in the lower half of the industry: VHI underperforms 77.38% of its industry peers.
VHI's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for VHI so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 12.76% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.96%
GM growth 5Y-17.54%
2. Health
2.1 Basic Checks
VHI does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
Compared to 1 year ago, VHI has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that VHI is in the distress zone and has some risk of bankruptcy.
VHI has a Altman-Z score of 1.50. This is in the lower half of the industry: VHI underperforms 66.67% of its industry peers.
VHI has a Debt/Equity ratio of 0.58. This is a neutral value indicating VHI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, VHI perfoms like the industry average, outperforming 51.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACCN/A
WACC7.31%
2.3 Liquidity
A Current Ratio of 2.91 indicates that VHI has no problem at all paying its short term obligations.
VHI has a better Current ratio (2.91) than 73.81% of its industry peers.
VHI has a Quick Ratio of 1.73. 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 better Quick ratio (1.73) than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The earnings per share for VHI have decreased strongly by -98.57% in the last year.
The Revenue for VHI has decreased by -13.53% in the past year. This is quite bad
Measured over the past years, VHI shows a small growth in Revenue. The Revenue has been growing by 1.09% on average per year.
EPS 1Y (TTM)-98.57%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q258.82%
Revenue 1Y (TTM)-13.53%
Revenue growth 3Y1.28%
Revenue growth 5Y1.09%
Revenue growth Q2Q7.69%
3.2 Future
The Earnings Per Share is expected to grow by 220.51% on average over the next years. This is a very strong growth
VHI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.04% yearly.
EPS Next Y436.67%
EPS Next 2Y220.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.95%
Revenue Next 2Y12.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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 939.50, VHI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VHI is valued a bit more expensive than the industry average as 70.24% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of VHI to the average of the S&P500 Index (28.15), we can say VHI is valued expensively.
A Price/Forward Earnings ratio of 5.41 indicates a rather cheap valuation of VHI.
Based on the Price/Forward Earnings ratio, VHI is valued cheaper than 97.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VHI to the average of the S&P500 Index (20.20), we can say VHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 939.5 | ||
| Fwd PE | 5.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VHI is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 25.12 |
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.
A more expensive valuation may be justified as VHI's earnings are expected to grow with 220.51% in the coming years.
PEG (NY)2.15
PEG (5Y)N/A
EPS Next 2Y220.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, VHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.10, VHI pays a bit more dividend than its industry peers.
VHI's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of VHI decreases each year by -19.30%.
VHI has been paying a dividend for at least 10 years, so it has a reliable track record.
VHI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.3%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
VHI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-75.21%
EPS Next 2Y220.51%
EPS Next 3YN/A
VALHI INC
NYSE:VHI (5/17/2024, 7:04:00 PM)
18.79
+0.31 (+1.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap531.57M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 939.5 | ||
| Fwd PE | 5.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.44% | ||
| ROE | -1.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 12.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-98.57%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y436.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.53%
Revenue growth 3Y1.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y