| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 1/6 |
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
Risk Analysis
No risks detected for VHI from our risk checks.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$28.41 |
| 52 Week High | US$34.60 |
| 52 Week Low | US$16.00 |
| Beta | 1.79 |
| 1 Month Change | 8.39% |
| 3 Month Change | 19.72% |
| 1 Year Change | 66.24% |
| 3 Year Change | -26.02% |
| 5 Year Change | -31.77% |
| Change since IPO | -60.54% |
Recent News & Updates
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...
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...
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
| VHI | US Chemicals | US Market | |
|---|---|---|---|
| 7D | -5.3% | -3.5% | -4.6% |
| 1Y | 66.2% | 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
| VHI volatility | |
|---|---|
| VHI Average Weekly Movement | 6.2% |
| Chemicals Industry Average Movement | 5.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | 2,784 | Robert Graham | https://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
| VHI fundamental statistics | |
|---|---|
| Market Cap | US$803.35m |
| Earnings (TTM) | US$95.40m |
| Revenue (TTM) | US$2.13b |
8.4x
P/E Ratio0.4x
P/S RatioIs VHI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| VHI income statement (TTM) | |
|---|---|
| Revenue | US$2.13b |
| Cost of Revenue | US$1.62b |
| Gross Profit | US$509.10m |
| Expenses | US$413.70m |
| Earnings | US$95.40m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.37 |
| Gross Margin | 23.90% |
| Net Profit Margin | 4.48% |
| Debt/Equity Ratio | 65.0% |
How did VHI perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield10%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:34 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.