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VHI

ValhiNYSE:VHI Stock Report

Last Price

US$28.41

Market Cap

US$803.4m

7D

-5.3%

1Y

66.2%

Updated

19 Jan, 2022

Data

Company Financials
VHI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends1/6

VHI Stock Overview

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in the Asia Pacific, Europe, North America, and internationally.

Rewards

Trading at 95.9% below our estimate of its fair value

Earnings grew by 130.4% over the past year

Risk Analysis

No risks detected for VHI from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Valhi
Historical stock prices
Current Share PriceUS$28.41
52 Week HighUS$34.60
52 Week LowUS$16.00
Beta1.79
1 Month Change8.39%
3 Month Change19.72%
1 Year Change66.24%
3 Year Change-26.02%
5 Year Change-31.77%
Change since IPO-60.54%

Recent News & Updates

Nov 29
Valhi (NYSE:VHI) Will Pay A Dividend Of US$0.08

Valhi (NYSE:VHI) Will Pay A Dividend Of US$0.08

Valhi, Inc.'s ( NYSE:VHI ) investors are due to receive a payment of US$0.08 per share on 23rd of December. Including...

Nov 08
Valhi (NYSE:VHI) Will Pay A Dividend Of US$0.08

Valhi (NYSE:VHI) Will Pay A Dividend Of US$0.08

Valhi, Inc.'s ( NYSE:VHI ) investors are due to receive a payment of US$0.08 per share on 23rd of December. This means...

Oct 10

Valhi: An Undervalued Mini-Conglomerate

Valhi has upgraded its balance sheet since the middle of 2020, and cash flow generation is strengthening. Family control of the business is rumored to be looking for a buyer. The Titanium Dioxide market is expected to see strong growth as the pandemic slowdown ends. Positive technical momentum trends could be reasserting themselves in October 2021.

Shareholder Returns

VHIUS ChemicalsUS Market
7D-5.3%-3.5%-4.6%
1Y66.2%12.0%7.7%

Return vs Industry: VHI exceeded the US Chemicals industry which returned 13% over the past year.

Return vs Market: VHI exceeded the US Market which returned 10.2% over the past year.

Price Volatility

Is VHI's price volatile compared to industry and market?
VHI volatility
VHI Average Weekly Movement6.2%
Chemicals Industry Average Movement5.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: VHI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VHI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a2,784Robert Grahamhttps://www.valhi.net

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in the Asia Pacific, Europe, North America, and internationally. The company’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the KRONOS name through agents and distributors.

Valhi Fundamentals Summary

How do Valhi's earnings and revenue compare to its market cap?
VHI fundamental statistics
Market CapUS$803.35m
Earnings (TTM)US$95.40m
Revenue (TTM)US$2.13b

8.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VHI income statement (TTM)
RevenueUS$2.13b
Cost of RevenueUS$1.62b
Gross ProfitUS$509.10m
ExpensesUS$413.70m
EarningsUS$95.40m

Dividends

1.1%

Current Dividend Yield

10%

Payout Ratio

Valuation

Is Valhi undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VHI ($28.41) is trading below our estimate of fair value ($696)

Significantly Below Fair Value: VHI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VHI is good value based on its PE Ratio (8.4x) compared to the US Chemicals industry average (21.6x).

PE vs Market: VHI is good value based on its PE Ratio (8.4x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VHI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VHI is good value based on its PB Ratio (1.1x) compared to the US Chemicals industry average (2.5x).


Future Growth

How is Valhi forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Valhi has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Valhi performed over the past 5 years?

-13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VHI has high quality earnings.

Growing Profit Margin: VHI's current net profit margins (4.5%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: VHI has become profitable over the past 5 years, growing earnings by -13.5% per year.

Accelerating Growth: VHI's earnings growth over the past year (130.4%) exceeds its 5-year average (-13.5% per year).

Earnings vs Industry: VHI earnings growth over the past year (130.4%) exceeded the Chemicals industry 17.5%.


Return on Equity

High ROE: VHI's Return on Equity (13.2%) is considered low.


Financial Health

How is Valhi's financial position?


Financial Position Analysis

Short Term Liabilities: VHI's short term assets ($1.5B) exceed its short term liabilities ($336.6M).

Long Term Liabilities: VHI's short term assets ($1.5B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: VHI's net debt to equity ratio (12.9%) is considered satisfactory.

Reducing Debt: VHI's debt to equity ratio has reduced from 202.3% to 65% over the past 5 years.

Debt Coverage: VHI's debt is well covered by operating cash flow (42.6%).

Interest Coverage: VHI's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Dividend

What is Valhi current dividend yield, its reliability and sustainability?

1.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VHI's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: VHI's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: VHI's dividend payments have been volatile in the past 10 years.

Growing Dividend: VHI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.6%), VHI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Robert Graham (65 yo)

5.67yrs

Tenure

US$8,080,000

Compensation

Mr. Robert D. Graham has served as a Vice Chairman of the Board of CompX International Inc. since May 2018. He served as Chief Executive Officer of NL Industries, Inc. since February 2014 until June 01, 20...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD8.08M) is above average for companies of similar size in the US market ($USD2.39M).

Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VHI's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: VHI's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Valhi, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Valhi, Inc.
  • Ticker: VHI
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Implied Market Cap: US$803.352m
  • Shares outstanding: 28.28m
  • Website: https://www.valhi.net

Number of Employees


Location

  • Valhi, Inc.
  • 5430 LBJ Freeway
  • Suite 1700
  • Dallas
  • Texas
  • 75240-2620
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:34
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.