Valhi (VHI) AI Stock Analysis

• Market Cap: $441.96M
• Dividend Yield: 2.05%
• Average Volume (3M): 15.56K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 1.14
• Revenue Growth: 7.82%
• EPS Growth: 19465.71%
• Country: US
• Employees: 3,050
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): 0.59
• Shares Outstanding: 28,294,792
• 10 Day Avg. Volume: 17,761
• 30 Day Avg. Volume: 15,563
• PEG Ratio: -0.15
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.17
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 0.64
• 1Y Price Target: $12.00
• Price Target Upside: -23.18% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: $17.00 ▲(8.83%Upside)

Valhi's stock score is supported by its attractive valuation, which is a significant strength given its low P/E ratio and reasonable dividend yield. However, the company's financial performance shows mixed results with improvements in revenue and cash flow but challenges in profitability and liabilities. Neutral technical indicators reflect ongoing uncertainty in market momentum. Continued focus on improving operational efficiency and managing liabilities will be crucial for sustaining growth.

Valhi Business Overview & Revenue Model

Company Description

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. The company's Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, integrated inventory and access control secured narcotics boxes, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. It also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The company's Real Estate Management and Development segment offers utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. It also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Contran Corporation.

How the Company Makes Money

Valhi, Inc. generates revenue through its diversified portfolio of businesses. The company's primary revenue stream comes from the sale of titanium dioxide pigments by Kronos Worldwide, Inc., which serves various industries such as coatings, plastics, and paper. This segment is influenced by global demand, raw material costs, and pricing dynamics. Additionally, Valhi earns income from its component products segment, which includes security products and precision slides, primarily through its CompX International subsidiary. The real estate management and development arm, managed by Basic Management, Inc., contributes to earnings through land sales, water delivery services, and the management of real estate assets. Valhi's revenue model is supported by strategic partnerships and long-term contracts with key customers, enhancing its market position and stability in earnings.

Valhi Financial Statement Overview

Summary

Valhi's financial performance shows a positive revenue growth trajectory and improved profitability. The company has recovered from a negative EBIT and net income to a positive margin in 2024, with a significant improvement in gross profit margin. However, the net profit margin remains low, and high liabilities could pose risks, 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
2.11B	2.10B	1.92B	2.22B	2.30B	1.85B
	Gross Profit
460.70M	424.50M	245.20M	490.40M	580.20M	412.10M
	EBIT
195.80M	165.70M	-19.50M	139.30M	231.00M	68.30M
	EBITDA
378.10M	360.80M	62.90M	256.30M	349.60M	205.30M
	Net Income Common Stockholders
117.10M	108.00M	-12.10M	136.10M	197.70M	84.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	350.20M	463.10M	553.60M	701.00M	523.00M
	Total Assets
0.00	2.80B	2.74B	2.84B	3.01B	2.89B
	Total Debt
607.80M	584.00M	569.00M	580.70M	672.50M	814.10M
	Net Debt
607.80M	235.70M	162.00M	102.20M	-25.90M	295.50M
	Total Liabilities
1.34B	1.42B	1.48B	1.53B	1.85B	1.88B
	Stockholders Equity
1.06B	1.04B	935.80M	958.60M	829.50M	682.50M
Cash Flow		Free Cash Flow
-101.80M	13.10M	-44.60M	-32.70M	395.60M	86.70M
	Operating Cash Flow
-63.10M	44.00M	3.90M	34.90M	459.70M	152.20M
	Investing Cash Flow
-156.80M	-125.00M	-29.00M	-146.70M	-37.40M	-57.00M
	Financing Cash Flow
49.60M	-2.30M	-75.90M	-114.00M	-189.10M	-122.50M

Valhi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.62
• 50DMA: Negative
• 100DMA: Negative
• 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 15.62 is above the 20-day moving average (MA) of 15.22, below the 50-day MA of 15.86, and below the 200-day MA of 22.55, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 49.00 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
ASIX	70 Neutral	$636.27M	7.60	11.26%	2.73%	6.03%	5079.05%
VHI	66 Neutral	$441.96M	3.80	11.76%	2.05%	7.82%	19465.71%
RYAM	61 Neutral	$257.75M	―	-10.12%	―	2.20%	34.71%
LXU	57 Neutral	$608.09M	―	-5.28%	―	-4.23%	-259.01%
TROX	56 Neutral	$871.54M	―	-8.44%	9.09%	4.15%	57.25%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%
ORGN	44 Neutral	$64.67M	―	-26.63%	―	-11.91%	-26768.00%

Valhi Corporate Events

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.