Valhi (VHI) AI Stock Analysis

• Market Cap: $480.29M
• Dividend Yield: 1.9%
• Average Volume (3M): 13.04K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 1.23
• Revenue Growth: 4.04%
• EPS Growth: 283.22%
• Country: US
• Employees: 3,050
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.03
• Shares Outstanding: 28,302,294
• 10 Day Avg. Volume: 14,042
• 30 Day Avg. Volume: 13,043
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.61
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 3.54
• 1Y Price Target: $15.25
• Price Target Upside: -9.44% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $18.50 ▲(9.86% Upside)

Valhi's strong revenue growth and undervaluation are offset by negative cash flow and recent income decline. The bearish technical indicators and corporate challenges further weigh on the stock's outlook.

Valhi Business Overview & Revenue Model

Company Description

Valhi, Inc. (VHI) is a diversified holding company, primarily engaged in the manufacturing and marketing of a range of products across various sectors, including chemicals, waste management, and real estate. The company operates through subsidiaries that focus on different segments such as the production of titanium dioxide, a key ingredient in coatings and plastics, as well as the management of waste disposal services and the development of commercial properties.

How the Company Makes Money

Valhi generates revenue through multiple key streams. The primary source of income comes from its chemical segment, particularly through the production and sale of titanium dioxide, which is in high demand across industries such as paint, plastics, and paper. Additionally, the waste management division contributes significantly by providing waste disposal and environmental services to both commercial and industrial clients. The real estate segment also adds to earnings through leasing and property management. Valhi's strategic partnerships with various industrial clients and suppliers enhance its market reach, while its focus on operational efficiency helps maintain competitive pricing and profitability.

Valhi Financial Statement Overview

Summary

Valhi's financial performance shows a mix of strengths and weaknesses. Revenue growth and improved profitability are positive, but the low net profit margin and high liabilities pose challenges. The cash flow situation has improved but remains volatile, necessitating careful liquidity management.

Income Statement

Valhi's revenue showed a positive growth trajectory, increasing from previous periods, particularly with a recovery from a negative EBIT and net income in 2023 to a positive margin in 2024. The gross profit margin improved significantly, indicating better cost management or pricing power. However, the net profit margin remains relatively low, suggesting ongoing challenges in efficiency or cost control.

Balance Sheet

Valhi's balance sheet shows a stable equity base with a reasonable debt-to-equity ratio, reflecting manageable leverage. The equity ratio is healthy, indicating a strong asset base relative to equity. However, the overall liabilities remain high, which could pose risks if revenue growth slows or costs rise unexpectedly.

Cash Flow

The company has shown improvement in operating cash flows, moving from negative to positive free cash flow. The free cash flow to net income ratio indicates that cash flows are supporting earnings, though cash reserves have declined, potentially limiting flexibility. The volatility in cash flow suggests potential risks in maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.12B	2.10B	1.92B	2.22B	2.30B	1.85B
Gross Profit	448.60M	424.50M	245.20M	490.40M	580.20M	412.10M
EBITDA	354.80M	360.80M	62.90M	256.30M	349.60M	205.30M
Net Income	98.10M	108.00M	-12.10M	87.20M	127.20M	55.20M
Balance Sheet
Total Assets	2.76B	2.80B	2.74B	2.84B	3.01B	2.89B
Cash, Cash Equivalents and Short-Term Investments	219.40M	350.20M	463.10M	553.60M	701.00M	523.00M
Total Debt	633.50M	584.00M	569.00M	580.70M	672.50M	814.10M
Total Liabilities	1.33B	1.42B	1.48B	1.53B	1.85B	1.88B
Stockholders Equity	1.07B	1.04B	935.80M	958.60M	829.50M	682.50M
Cash Flow
Free Cash Flow	-122.40M	13.10M	-44.60M	-32.70M	395.60M	86.70M
Operating Cash Flow	-74.90M	44.00M	3.90M	34.90M	459.70M	152.20M
Investing Cash Flow	-183.70M	-125.00M	-29.00M	-146.70M	-37.40M	-57.00M
Financing Cash Flow	50.20M	-2.30M	-75.90M	-114.00M	-189.10M	-122.50M

Valhi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VHI, the sentiment is Positive. The current price of 16.84 is above the 20-day moving average (MA) of 16.52, above the 50-day MA of 16.68, and below the 200-day MA of 19.71, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 78.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VHI.

Valhi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHI	64 Neutral	$480.29M	4.93	9.65%	1.90%	4.04%	283.22%
ASIX	63 Neutral	$528.56M	6.94	9.85%	3.29%	1.31%	796.76%
Sector *	58 Neutral	HK$18.24B	5.36	-7.29%	3.70%	-4.08%	-49.01%
LXU	51 Neutral	$553.19M	―	-6.51%	―	2.60%	-1506.69%
RYAM	49 Neutral	$338.35M	―	-81.36%	―	-4.90%	-458.80%
ORGN	47 Neutral	$125.76M	―	-25.50%	―	-15.84%	-605.38%
TROX	40 Underperform	$596.05M	―	-14.11%	11.87%	0.20%	-292.54%

Valhi Corporate Events

Valhi Reports Significant Q2 2025 Income Decline

Valhi, Inc. reported a significant decrease in net income for the second quarter of 2025, with earnings dropping to $0.9 million from $19.9 million in the same quarter of 2024. This decline is primarily attributed to lower operating results in the Chemicals Segment, despite improvements in the Real Estate Management and Development and Component Products Segments. The Chemicals Segment faced challenges due to lower average titanium dioxide prices, reduced operating rates, and global market uncertainties impacting sales volumes and pricing. Additionally, fluctuations in currency exchange rates affected financial outcomes, while the Real Estate Segment experienced delays in development activities due to permit and environmental approval issues.

The most recent analyst rating on (VHI) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Valhi stock, see the VHI Stock Forecast page.

Valhi’s New Financial Obligations Announced in SEC Filing

Kronos Worldwide, Inc., a Delaware corporation, disclosed information under Items 1.01 and 2.03 of the Current Report on Form 8-K dated July 17, 2025, which was filed with the U.S. Securities and Exchange Commission. This filing may have implications for the company’s operations or industry positioning, though specific impacts on stakeholders were not detailed in the release.

The most recent analyst rating on (VHI) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Valhi stock, see the VHI Stock Forecast page.

Valhi Holds Annual Stockholder Meeting and Dividend Declaration

On May 22, 2025, Valhi, Inc. held its annual stockholder meeting where stockholders elected seven directors and approved, on a nonbinding advisory basis, the executive compensation as outlined in the 2025 proxy statement. Additionally, Valhi’s board declared a regular quarterly dividend of eight cents per share, payable on June 26, 2025, to stockholders of record as of June 9, 2025.

The most recent analyst rating on (VHI) stock is a Sell with a $20.00 price target. To see the full list of analyst forecasts on Valhi stock, see the VHI Stock Forecast page.