Valhi (VHI) AI Stock Analysis

• Market Cap: $401.61M
• Dividend Yield: 2.71%
• Average Volume (3M): 11.59K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.43
• Revenue Growth: -0.65%
• EPS Growth: -79.35%
• Country: US
• Employees: 3,050
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.78
• Shares Outstanding: 28,302,294
• 10 Day Avg. Volume: 16,904
• 30 Day Avg. Volume: 11,590
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 50.89
• Enterprise Value/Market Cap: 2.24
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 3.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $14.00 ▲(11.91% Upside)

Valhi's overall stock score reflects significant challenges in financial performance and corporate events, with bearish technical indicators further weighing down the score. The moderate valuation provides limited upside potential, and liquidity risks are a concern.

Positive Factors

Business Diversification

Valhi’s multi-segment model (specialty chemicals, waste management, timber and real estate) smooths revenue volatility across cycles. Durable diversification supports stable cash flows, permits capital reallocation to stronger subsidiaries, and reduces single-market dependency over months.

Manageable Leverage

A 0.63 D/E and ~38.6% equity ratio signal moderate leverage and a stable capital structure. This level of gearing provides financial flexibility to absorb shocks, fund necessary working capital or targeted investments without immediate need for dilutive financing, aiding stability.

Core Operational Profitability

Sustained positive gross and EBIT margins indicate underlying operational efficiency in core businesses. Even with top-line pressure, a 7%+ EBIT margin provides earnings capacity to cover SG&A and invest in process improvements, supporting medium-term profitability recovery.

Negative Factors

Declining Revenue & Margins

Falling revenue and a sharp drop in net margin to under 1% erode scale economics and reduce internal funding for growth. Persistent top-line contraction compresses margins, limits reinvestment, and increases reliance on operational fixes or external capital to restore sustainable profitability.

Weak Cash Generation

Negative operating and free cash flow signal structural liquidity pressure that can curtail capex, acquisitions, or shareholder returns. Over months this reduces strategic optionality, raises refinancing risk for maturing liabilities, and makes the company more sensitive to external financing conditions.

Chemical Segment Headwinds

The Chemicals segment faces structural pricing pressure in TiO2, volume declines in Europe/exports and higher tax/litigation expenses. As a core earnings driver, persistent product-price weakness and regional demand softness can meaningfully depress consolidated profits and increase volatility.

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

Valhi's financial performance is challenged by declining revenue growth and profitability, with a low net profit margin and negative cash flow trends indicating potential liquidity risks. The balance sheet shows moderate stability with a manageable debt-to-equity ratio.

Income Statement

Valhi's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is relatively low at 18.08%, indicating pressure on cost management. The net profit margin has significantly decreased to 0.87% in TTM from 5.13% in 2024, reflecting challenges in maintaining profitability. Revenue growth has been negative, with a decline of 1.44% in TTM, suggesting a need for strategic initiatives to boost sales. However, the company has managed to maintain a positive EBIT margin of 7.34% in TTM, which is a positive sign of operational efficiency.

Balance Sheet

Valhi's balance sheet reveals a moderate financial position. The debt-to-equity ratio of 0.63 in TTM indicates a manageable level of leverage, which is an improvement from previous years. The return on equity has decreased to 1.75% in TTM, highlighting a decline in shareholder returns. The equity ratio stands at 38.56%, suggesting a stable capital structure with a reasonable proportion of equity financing.

Cash Flow

The cash flow statement presents some concerns. The TTM operating cash flow is negative, indicating potential liquidity issues. Free cash flow has improved slightly but remains negative, which could impact future investments and debt servicing. The free cash flow to net income ratio is high at 153.49%, suggesting that the company is generating more free cash flow relative to net income, but the negative cash flow figures are a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.06B	2.10B	1.92B	2.22B	2.30B	1.85B
Gross Profit	361.80M	424.50M	245.20M	490.40M	580.20M	412.10M
EBITDA	227.10M	360.80M	62.90M	256.30M	349.60M	205.30M
Net Income	18.40M	108.00M	-9.90M	87.20M	127.20M	55.20M
Balance Sheet
Total Assets	2.72B	2.80B	2.74B	2.84B	3.01B	2.89B
Cash, Cash Equivalents and Short-Term Investments	186.60M	350.20M	463.10M	553.60M	701.00M	523.00M
Total Debt	683.20M	584.00M	569.00M	580.70M	672.50M	814.10M
Total Liabilities	1.31B	1.42B	1.48B	1.53B	1.85B	1.88B
Stockholders Equity	1.05B	1.04B	935.80M	958.60M	829.50M	682.50M
Cash Flow
Free Cash Flow	-138.60M	13.10M	-44.60M	-32.70M	395.60M	86.70M
Operating Cash Flow	-90.30M	44.00M	3.90M	34.90M	459.70M	152.20M
Investing Cash Flow	-44.20M	-125.00M	-29.00M	-146.70M	-37.40M	-57.00M
Financing Cash Flow	-6.30M	-2.30M	-75.90M	-114.00M	-189.10M	-122.50M

Valhi Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.51
• 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 Neutral. The current price of 12.51 is below the 20-day moving average (MA) of 13.76, below the 50-day MA of 12.89, and below the 200-day MA of 15.02, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 35.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VHI.

Valhi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LXU	58 Neutral	$668.36M	-876.42	-0.13%	―	12.49%	95.48%
ASIX	58 Neutral	$425.53M	8.24	6.62%	3.81%	-5.05%	35.01%
RYAM	56 Neutral	$519.96M	-1.25	-78.11%	―	-9.75%	-386.63%
FF	51 Neutral	$144.11M	―	-18.09%	7.12%	-49.82%	-195.74%
TROX	49 Neutral	$960.83M	-2.96	-18.65%	8.27%	-7.81%	-334.15%
VHI	47 Neutral	$401.61M	21.98	1.78%	2.71%	-0.65%	-79.35%

Valhi Corporate Events

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.

Valhi Reports Q3 2025 Net Loss Amid Chemical Segment Struggles

Valhi reported a net loss of $22.2 million for the third quarter of 2025, a significant decline from a net income of $57.5 million in the same period of 2024. This downturn was primarily due to lower operating results in the Chemicals Segment, affected by decreased TiO2 selling prices, reduced sales volumes in Europe and export markets, and increased tax expenses from new German legislation. The Component Products Segment, however, saw an increase in net sales and operating income due to higher sales in security products and marine components. The Real Estate Management and Development Segment experienced a decline in net sales due to a slower pace of development activities, while corporate expenses rose due to higher litigation fees.

The most recent analyst rating on (VHI) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Valhi stock, see the VHI Stock Forecast page.