NYSE:VHI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Valhi's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VHI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VHI's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

11.9%

VHI

2.1%

US Chemicals

-1.4%

US Market


1 Year Return

20.5%

VHI

33.2%

US Chemicals

37.1%

US Market

Return vs Industry: VHI underperformed the US Chemicals industry which returned 31.6% over the past year.

Return vs Market: VHI underperformed the US Market which returned 34.1% over the past year.


Shareholder returns

VHIIndustryMarket
7 Day11.9%2.1%-1.4%
30 Day16.3%2.3%1.6%
90 Day21.6%6.9%7.3%
1 Year24.5%20.5%36.4%33.2%40.2%37.1%
3 Year-68.5%-71.2%35.9%15.1%62.5%52.1%
5 Year28.1%10.0%104.4%63.6%133.9%108.0%

Long-Term Price Volatility Vs. Market

How volatile is Valhi's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

13.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VHI ($19.67) is trading above our estimate of fair value ($5.48)

Significantly Below Fair Value: VHI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VHI is good value based on its PE Ratio (13.5x) compared to the US Chemicals industry average (28.2x).

PE vs Market: VHI is good value based on its PE Ratio (13.5x) compared to the US market (21.5x).


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 (0.8x) compared to the US Chemicals industry average (2.8x).


Next Steps

Future Growth

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

18.6%

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.


Next Steps

Past Performance

How has Valhi performed over the past 5 years?

28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VHI has high quality earnings.

Growing Profit Margin: VHI's current net profit margins (2.4%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: VHI has become profitable over the past 5 years, growing earnings by 28.4% per year.

Accelerating Growth: VHI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VHI had negative earnings growth (-31.8%) over the past year, making it difficult to compare to the Chemicals industry average (-3.4%).


Return on Equity

High ROE: VHI's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Valhi's financial position?


Financial Position Analysis

Short Term Liabilities: VHI's short term assets ($1.4B) exceed its short term liabilities ($307.4M).

Long Term Liabilities: VHI's short term assets ($1.4B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: VHI's debt to equity ratio (80.2%) is considered high.

Reducing Debt: VHI's debt to equity ratio has reduced from 165.6% to 80.2% over the past 5 years.

Debt Coverage: VHI's debt is not well covered by operating cash flow (13.7%).

Interest Coverage: VHI's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VHI's dividend (1.63%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: VHI's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (3.75%).


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 reasonably low payout ratio (44.1%), VHI's dividend payments are well 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?

4.1yrs

Average management tenure


CEO

Robert Graham (64 yo)

4.08yrs

Tenure

US$6,852,000

Compensation

Mr. Robert D. Graham has served as a Vice Chairman of the Board of CompX International Inc. since May 2018. He is has been Chief Executive Officer of NL Industries, Inc. since February 2014 and its Vice Ch...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD6.85M) is above average for companies of similar size in the US market ($USD1.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Graham
Vice Chairman of the Board4.08yrsUS$6.85m0.0077%
$ 42.9k
James Brown
Senior VP & CFO1.67yrsUS$1.76mno data
Andrew Nace
Executive VP & General Counsel7.75yrsUS$2.92mno data
Courtney Riley
Executive Vice President of Environmental Affairs4.08yrsUS$1.01mno data
Michael Simmons
VP & Chief Accounting Officer1.67yrsno datano data
Janet Keckeisen
Vice President of Corporate Strategy & Investor Relations8.08yrsno datano data
Amy Samford
VP & Controller5.08yrsno datano data
Bryan Hanley
VP & Treasurer3.5yrsno data0.0088%
$ 49.2k
Jane Grimm
VP & Secretary1.67yrsno datano data

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: VHI's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Graham
Vice Chairman of the Board4.08yrsUS$6.85m0.0077%
$ 42.9k
Thomas Barry
Independent Director21.08yrsUS$100.10k0.023%
$ 128.5k
W. McIlroy
Independent Director18.08yrsUS$80.10k0.016%
$ 87.5k
Terri Herrington
Independent Director2.92yrsUS$95.10k0.0067%
$ 37.5k
Loretta Feehan
Non-Executive Chair of the Board3.75yrsUS$100.10k0.0088%
$ 49.0k
Mary Tidlund
Independent Director4.92yrsUS$75.10k0.0079%
$ 44.1k

4.3yrs

Average Tenure

64yo

Average Age

Experienced Board: VHI's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Valhi, Inc.
  • Ticker: VHI
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$556.132m
  • Shares outstanding: 28.27m
  • Website: https://www.valhi.net

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VHINYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1987

Biography

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 segm...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 23:39
End of Day Share Price2021/02/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.