Valhi Inc

Industrials
Major Chemicals
www.valhi.net

Earnings Score
Moat Score
Safety Score

Market Cap $690.27
PE 0
Debt $696.00M
Cash $314.60M
EV $381.40M
FCF $39.10M

Earnings

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Sales & Net Margins

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Earnings	$89.10M
EBIT	$192.70M
ROE	7%
ROA	7%
FCF	$39.10M
Equity	$1.37B
Growth Stability	-13%
PE	0
PEG	-0
PB	0
P/FCF	0
P/S	0
Price/Cash	455.76K
Debt/Equity	0.51
Debt/FCF	17.8
Net Margins	5%
Gross Margins	19%
Op. Margins	9%
Earnings CAGR	-14%
Sales Growth YoY	14%
Sales Growth QoQ	-5%
Sales CAGR	4%
FCF CAGR	0%
Equity CAGR	12%
Earnings Stability	0.1
Earnings Growth YoY	-1K%
Earnings Growth QoQ	189%
Earnings CAGR 5Y	-19%

Sales CAGR 5Y	2%
FCF CAGR 5Y	-5%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	-9%
Sales CAGR 3Y	-9%
FCF CAGR 3Y	-36%
Equity CAGR 3Y	4%
Market Cap	$690.27
Revenue	$2.08B
Dividend Yield	1M%
Payout Ratio	10%
Assets	$2.79B
Total Debt	$696.00M
Cash	$314.60M
Shares Outstanding	28.5
EV	381.4M
Earnings Score	5%
Moat Score	79%
Safety Score	44%
Final Score	43%
Working Capital	902.3M
Current Ratio	2.79
Gross Profit	$388.90M
Shares Growth 3y	0%
Equity Growth QoQ	6%
Equity Growth YoY	8%

Assets & ROA

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Stockholders Equity & ROE

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Valhi Inc is a holding company that provides chemicals, security products, waste management systems and real estate development and management through its subsidiaries. It operates its business in three segments, which are Chemicals, Component Products, and Real Estate Management and Development. Through its segments the company produces and markets titanium dioxide pigments which generate the majority of the company revenues; manufactures security products; processes, treats, stores and disposes of radioactive and toxic waste; and provides real estate management services. Valhi derives maximum revenue from the Chemicals segment. The company has a presence in Europe, North America, Asia Pacific and Rest of World.

SEC Filings

Direct access to Valhi Inc (VHI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Valhi Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Valhi Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -14%

Stability 10%

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Valhi Inc Discounted Cash Flow

Fully customizable DCF calculator online for Valhi Inc .

Years

Calculation mode

= $394M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$39M	$39M	$39M	$39M	$39M	$39M	$39M	$39M	$39M	$40M	$40M	$396M
DCF		$36M	$32M	$29M	$27M	$24M	$22M	$20M	$18M	$17M	$15M	$153M
Value	$394M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-11%	-1%	11%	14%	3%	3%	6%	4%	-1%	5%
ROA	-	3%	12%	14%	7%	6%	11%	8%	1%	7%
ROE	-	-4%	27%	27%	5%	5%	11%	7%	-1%	7%

Bad Net Margins (5.25%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	46.55	5.56	7.72	6.81	9.12	1.66	-17.17	-12.27	17.8
Debt over Equity	1.84	2.19	1.36	0.81	0.82	0.79	0.57	0.43	0.43	0.51
Growth Stability	-	-	-	100%	33%	32%	100%	100%	-13%	-13%

Bad Debt/FCF ratio (17.8)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.51)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-13%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	2%	20%	-3%	4%	-3%	24%	-3%	-14%	2%
Earnings YoY growth	-	-91%	-1K%	26%	-81%	12%	130%	-29%	-113%	-19%
Equity YoY growth	-	-16%	73%	29%	-1%	3%	15%	13%	-3%	8%
FCF YoY growth	-	-165%	800%	-45%	13%	-26%	356%	-108%	36%	-5%