Valhi (VHI) AI Stock Analysis

• Market Cap: $356.89M
• Dividend Yield: 2.58%
• Average Volume (3M): 11.59K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 1.32
• 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: 3.51
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 5.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $12.00 ▼(-4.08% Downside)

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

Diverse Revenue Streams

Valhi's diverse revenue streams across chemicals, waste management, and timber provide stability and growth potential, reducing reliance on any single market.

Operational Efficiency

Maintaining a positive EBIT margin indicates effective cost management and operational efficiency, supporting long-term profitability despite revenue challenges.

Manageable Leverage

A manageable debt-to-equity ratio suggests financial stability, providing flexibility for future investments and shielding against economic fluctuations.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates challenges in market expansion and sales, potentially impacting long-term competitiveness and profitability.

Negative Cash Flow

Negative cash flow raises concerns about liquidity and the ability to fund operations and investments, posing risks to financial health and growth.

Profitability Challenges

A declining net profit margin reflects difficulties in maintaining profitability, which could hinder long-term financial performance and shareholder returns.

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 demonstrates strong revenue growth and improved profitability margins, indicating a positive trajectory. The balance sheet is stable with manageable leverage, but increasing debt levels warrant caution. Cash flow challenges, particularly negative operating cash flow, need addressing to ensure long-term financial health.

Income Statement

Valhi's income statement shows a strong recovery in revenue with a 55.9% growth rate in TTM, indicating robust sales performance. The gross profit margin improved to 21.1%, and the net profit margin is at 4.6%, reflecting efficient cost management. However, the EBIT margin has slightly decreased compared to the previous year, suggesting some operational challenges.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.59, indicating moderate leverage. The return on equity is 9.4%, showing decent profitability. The equity ratio stands at 38.8%, reflecting a solid equity base. However, the slight increase in debt levels could pose a risk if not managed carefully.

Cash Flow

The cash flow statement highlights a concerning negative operating cash flow in TTM, which could impact liquidity. Free cash flow has improved but remains negative, indicating potential cash management issues. The free cash flow to net income ratio is strong at 1.63, suggesting efficient conversion of profits into cash.

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: Negative
• Last Price: 12.51
• 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 Negative. The current price of 12.51 is above the 20-day moving average (MA) of 12.47, below the 50-day MA of 13.54, and below the 200-day MA of 15.59, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 35.10 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	59 Neutral	$449.44M	8.70	6.62%	3.93%	-5.05%	35.01%
LXU	58 Neutral	$587.07M	-769.81	-0.13%	―	12.49%	95.48%
TROX	57 Neutral	$608.84M	―	-18.65%	7.49%	-7.81%	-334.15%
FF	54 Neutral	$139.29M	―	-18.09%	7.12%	-49.82%	-195.74%
RYAM	49 Neutral	$418.11M	―	-78.11%	―	-9.75%	-386.63%
VHI	47 Neutral	$356.89M	3.66	1.78%	2.58%	-0.65%	-79.35%

Valhi Corporate Events

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.