Valhi (VHI) AI Stock Analysis

• Market Cap: $374.16M
• Dividend Yield: 2.71%
• Average Volume (3M): 11.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -0.65%
• EPS Growth: -79.35%
• Country: US
• Employees: 3,050
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -1.86
• Shares Outstanding: 28,302,294
• 10 Day Avg. Volume: 16,904
• 30 Day Avg. Volume: 11,590
• PEG Ratio: 0.04
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -4.18
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: 7.25
• 1Y Price Target: $11.00
• Price Target Upside: -12.07% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.47
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $13.50 ▲(7.91% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is primarily held back by weak financial performance driven by 2025 losses and deteriorating cash flow. Technicals also indicate subdued momentum, while valuation is mixed due to a loss-driven negative P/E partially balanced by a moderate dividend yield; the recent dividend declaration is a modest positive but secondary.

Positive Factors

Diversified business model

Valhi’s multi‑subsidiary model spans specialty chemicals, waste management and timber, giving multiple revenue streams and cross‑sector exposure. This structural diversification dampens single‑industry cyclicality and supports more stable cash flows across 2–6 months.

Manageable leverage

Leverage around mid‑0.5x, improved since 2020, implies a conservatively funded capital structure for a cyclical chemicals business. Steadier equity and reduced debt burden enhance financial flexibility to weather mid‑cycle weakness and fund operations or strategic needs.

Consistent capital returns

A regular quarterly dividend signals management’s commitment to returning cash and maintaining payout policy. For a diversified industrial group, this discipline can indicate stable cash allocation priorities and support investor confidence over the medium term.

Negative Factors

Return to net losses

Net losses in 2025 show earnings volatility and margin pressure versus prior profitable periods. Persistent loss-making erodes retained earnings, limits reinvestment capacity, and raises the risk that operational fixes are needed to restore sustainable profitability over coming quarters.

Deteriorating cash generation

Negative operating cash flow and mostly negative free cash flow indicate weak conversion of earnings to cash. This strains ability to fund capex, service obligations, and dividends without using liquidity or raising debt, increasing execution and financing risk in the medium term.

Weak revenue and EPS trends

Steep reported revenue decline and large EPS contraction point to structural demand or pricing headwinds for parts of the business. Such negative top‑line and earnings trends constrain margin recovery and strategic investment, risking continued weakness over several quarters.

Valhi Business Overview & Revenue Model

Company Description

Valhi, Inc. is a diversified holding company primarily engaged in the manufacturing and distribution of chemicals, waste management services, and the production of timber products. The company operates through several subsidiaries that serve various sectors, including specialty chemicals, solid waste management, and real estate. Valhi focuses on providing high-quality products and services that cater to the needs of its industrial and commercial clients, leveraging its extensive expertise and operational efficiencies.

How the Company Makes Money

Valhi generates revenue through multiple streams, including the sale of specialty chemicals produced by its subsidiaries, which serve various industries such as coatings, plastics, and agriculture. The company also earns income from its waste management services, which include waste collection, recycling, and disposal services. Additionally, Valhi derives revenue from its timber operations, which involve the cultivation and sale of timber products. Significant partnerships with industrial clients and government contracts in waste management further bolster its earnings, while its diverse portfolio allows for stability and growth in fluctuating market conditions.

Valhi Financial Statement Overview

Summary

Results are mixed but currently pressured: revenue has been relatively stable, leverage looks manageable, but profitability swung back to losses in 2025 and cash generation deteriorated with negative operating cash flow and mostly negative free cash flow, increasing near-term execution risk.

Income Statement

Revenue has been relatively stable with modest growth in 2024 and 2025, but profitability has been volatile. After solid profits in 2024, 2025 swung back to losses with negative operating results and weaker gross margin versus prior years, suggesting a tougher pricing/cost environment. Overall, the top line is holding up, but earnings quality and consistency are a key concern.

Balance Sheet

Leverage appears manageable for a cyclical chemicals business, with debt-to-equity improving meaningfully from 2020 levels and sitting around the mid‑0.5x range in 2024–2025. Equity has remained fairly steady, which provides some balance sheet cushion. The main weakness is returns: equity returns turned negative in 2025 alongside the net loss, highlighting sensitivity to operating downturns.

Cash Flow

Cash generation has deteriorated: operating cash flow turned negative in 2025 and free cash flow has been negative in most years except 2020–2021 and a small positive in 2024. The sharp decline in free cash flow in 2025 and weak conversion of earnings into cash over the last few years raise questions around working capital/capex pressure and the durability of cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.08B	2.10B	1.92B	2.22B	2.30B
Gross Profit	305.70M	424.50M	245.20M	490.40M	580.20M
EBITDA	65.40M	360.80M	62.90M	256.30M	349.60M
Net Income	-57.60M	108.00M	-9.90M	87.20M	127.20M
Balance Sheet
Total Assets	2.63B	2.80B	2.74B	2.84B	3.01B
Cash, Cash Equivalents and Short-Term Investments	225.50M	350.20M	463.10M	553.60M	701.00M
Total Debt	611.60M	584.00M	569.00M	580.70M	672.50M
Total Liabilities	1.27B	1.42B	1.48B	1.53B	1.85B
Stockholders Equity	1.02B	1.04B	935.80M	958.60M	829.50M
Cash Flow
Free Cash Flow	-82.10M	13.10M	-44.60M	-32.70M	395.60M
Operating Cash Flow	-35.50M	44.00M	3.90M	34.90M	459.70M
Investing Cash Flow	-47.80M	-125.00M	-29.00M	-146.70M	-37.40M
Financing Cash Flow	-71.10M	-2.30M	-75.90M	-114.00M	-189.10M

Valhi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VHI, the sentiment is Negative. The current price of 12.51 is below the 20-day moving average (MA) of 13.70, below the 50-day MA of 14.18, and below the 200-day MA of 14.68, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 34.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VHI.

Valhi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXU	67 Neutral	$1.05B	25.00	-0.13%	―	12.49%	95.48%
ASIX	64 Neutral	$544.18M	9.44	6.06%	3.81%	-5.05%	35.01%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RYAM	52 Neutral	$696.86M	-0.94	-99.73%	―	-9.75%	-386.63%
TROX	51 Neutral	$1.11B	-1.41	-29.85%	8.27%	-7.81%	-334.15%
VHI	46 Neutral	$374.16M	-5.96	-5.48%	2.71%	-0.65%	-79.35%
FF	46 Neutral	$138.61M	-2.83	-28.62%	7.12%	-49.82%	-195.74%

Valhi Corporate Events

Valhi Board Declares Regular Quarterly Cash Dividend

On March 5, 2026, Dallas-based Valhi, Inc. announced that its board of directors declared a regular quarterly cash dividend of $0.08 per share on its common stock. The dividend is scheduled to be paid on March 31, 2026, to shareholders of record as of the close of business on March 16, 2026, signaling continued capital returns to investors and underscoring the company’s commitment to maintaining its shareholder payout policy.

The most recent analyst rating on (VHI) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Valhi stock, see the VHI Stock Forecast page.

Valhi Announces Executive Leadership Change

On December 9, 2025, Valhi announced that Patty S. Brinda, vice president and controller, will retire from her position and as an employee of Contran Corporation, effective December 31, 2025. Following her retirement, Edward R. Moore has been elected as the new vice president and controller, effective January 1, 2026. Mr. Moore, who has been with the company since 2024 as director of reporting and control, brings extensive experience from his previous role at PricewaterhouseCoopers LLP.

The most recent analyst rating on (VHI) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Valhi stock, see the VHI Stock Forecast page.