Valhi (VHI) AI Stock Analysis

• Market Cap: $356.89M
• Dividend Yield: 2.66%
• 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: 52 Neutral
• Price Target: $13.00 ▲(7.88% Upside)

Valhi's overall stock score reflects significant challenges in financial performance and bearish technical indicators. The high P/E ratio suggests potential overvaluation, but the dividend yield provides some investor appeal. Addressing liquidity and profitability issues is crucial for future improvement.

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 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 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: 12.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 12.05 is below the 20-day moving average (MA) of 13.49, below the 50-day MA of 14.69, and below the 200-day MA of 16.16, indicating a bearish trend. The MACD of -0.70 indicates Positive momentum. The RSI at 33.14 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, 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%
LXU	60 Neutral	$587.07M	-769.81	-0.13%	―	12.49%	95.48%
FF	54 Neutral	$135.79M	―	-18.09%	7.74%	-49.82%	-195.74%
ASIX	53 Neutral	$386.04M	7.47	6.62%	4.45%	-5.05%	35.01%
VHI	52 Neutral	$356.89M	3.66	1.78%	2.66%	-0.65%	-79.35%
TROX	45 Neutral	$470.90M	―	-18.65%	12.15%	-7.81%	-334.15%
RYAM	45 Neutral	$374.56M	―	-78.11%	―	-9.75%	-386.63%

Valhi Corporate Events

Valhi Inc. Faces Challenges Amidst Declining Earnings

Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors, with a focus on titanium dioxide production, security products, and land development. In the third quarter of 2025, Valhi reported a net loss of $22.2 million, a significant decline from the $57.5 million net income in the same period of 2024. This downturn was primarily attributed to lower operating results in the Chemicals Segment and increased tax expenses due to new legislation in Germany. The Chemicals Segment experienced a 6% decrease in net sales, driven by lower titanium dioxide prices and reduced sales volumes in European and export markets, while the Component Products Segment saw a rise in net sales due to increased demand in government security and marine markets. Despite challenges, Valhi’s management remains focused on navigating market uncertainties and optimizing operations to improve financial performance.

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.