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Valhi Inc (VHI)
:VHI
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Valhi (VHI) AI Stock Analysis

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VHI

Valhi

(NYSE:VHI)

Rating:58Neutral
Price Target:
$16.00
▲(4.71% Upside)
Valhi's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. While the valuation suggests potential upside, recent corporate events and negative market momentum weigh heavily on the stock's outlook.

Valhi (VHI) vs. SPDR S&P 500 ETF (SPY)

Valhi Business Overview & Revenue Model

Company DescriptionValhi, 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 MoneyValhi, 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 positive revenue growth and improved profitability, but ongoing challenges include a low net profit margin and high liabilities. The cash flow situation has improved but remains volatile, indicating a need for careful liquidity management.
Income Statement
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.10B1.92B2.22B2.30B1.85B
Gross Profit424.50M245.20M490.40M580.20M412.10M
EBITDA360.80M62.90M256.30M349.60M205.30M
Net Income108.00M-12.10M136.10M197.70M84.70M
Balance Sheet
Total Assets2.80B2.74B2.84B3.01B2.89B
Cash, Cash Equivalents and Short-Term Investments350.20M463.10M553.60M701.00M523.00M
Total Debt584.00M569.00M580.70M672.50M814.10M
Total Liabilities1.42B1.48B1.53B1.85B1.88B
Stockholders Equity1.04B935.80M958.60M829.50M682.50M
Cash Flow
Free Cash Flow13.10M-44.60M-32.70M395.60M86.70M
Operating Cash Flow44.00M3.90M34.90M459.70M152.20M
Investing Cash Flow-125.00M-29.00M-146.70M-37.40M-57.00M
Financing Cash Flow-2.30M-75.90M-114.00M-189.10M-122.50M

Valhi Technical Analysis

Technical Analysis Sentiment
Negative
Last Price15.28
Price Trends
50DMA
16.46
Negative
100DMA
16.45
Negative
200DMA
20.28
Negative
Market Momentum
MACD
-0.43
Positive
RSI
33.54
Neutral
STOCH
13.10
Positive
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 15.28 is below the 20-day moving average (MA) of 16.94, below the 50-day MA of 16.46, and below the 200-day MA of 20.28, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 13.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VHI.

Valhi Risk Analysis

Valhi disclosed 16 risk factors in its most recent earnings report. Valhi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Valhi Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$484.00M6.359.85%3.48%1.31%796.76%
58
Neutral
$438.57M3.7711.76%2.09%7.82%19465.71%
56
Neutral
$127.23M-26.63%-11.91%-26768.00%
51
Neutral
$550.31M-6.51%2.60%-1506.69%
45
Neutral
$512.03M-14.11%15.48%0.20%-292.54%
45
Neutral
$255.75M-81.36%-4.90%-458.55%
44
Neutral
AU$1.47B-5.90-41.17%4.23%-3.35%-41.14%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VHI
Valhi
15.28
-3.42
-18.29%
LXU
Lsb Industries
7.40
-0.59
-7.38%
TROX
TRONOX
3.23
-8.99
-73.57%
RYAM
Rayonier Advanced Materials
4.37
-2.74
-38.54%
ASIX
AdvanSix
18.39
-8.80
-32.36%
ORGN
Origin Materials
0.85
-0.02
-2.30%

Valhi Corporate Events

Financial Disclosures
Valhi Reports Significant Q2 2025 Income Decline
Negative
Aug 7, 2025

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.

Regulatory Filings and Compliance
Valhi’s New Financial Obligations Announced in SEC Filing
Neutral
Jul 17, 2025

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.

Executive/Board ChangesShareholder MeetingsDividends
Valhi Holds Annual Stockholder Meeting and Dividend Declaration
Neutral
May 22, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025