Is Valhi Stock a Good Investment?

Valhi Investment Advice

VHI

To provide specific investment advice or recommendations on Valhi Inc stock, we recommend investors consider the following general factors when evaluating Valhi Inc. This will help you to make an informed decision on whether to include Valhi in one of your diversified portfolios:

Examine Valhi's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Valhi's leadership team and their track record. Good management can help Valhi navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Valhi's business and its evolving consumer preferences.
Compare Valhi's performance and market position to its competitors. Analyze how Valhi is positioned in terms of product offerings, innovation, and market share.
Check if Valhi pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Valhi's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Valhi Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Valhi Inc is a good investment.

Sell

Buy

Strong Sell

Our trade recommendation module complements current analysts and expert consensus on Valhi Inc. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time. To make sure Valhi Inc is not overpriced, please validate all Valhi fundamentals, including its book value per share, retained earnings, and the relationship between the cash and equivalents and target price . Given that Valhi Inc has a price to earning of 12.38 X, we advise you to double-check Valhi Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Somewhat reliable	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Below Average	Details
Economic Sensitivity	Hyperactively responds to market trends	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Poor	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Valhi Stock

Researching Valhi's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 92.0% of the company outstanding shares are owned by insiders. The company has Price to Book (P/B) ratio of 0.73. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Valhi Inc has Price/Earnings To Growth (PEG) ratio of 0.32. The entity last dividend was issued on the 29th of November 2024. The firm had 1:12 split on the 2nd of June 2020.

To determine if Valhi is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Valhi's research are outlined below:

	Valhi Inc generated a negative expected return over the last 90 days
	Valhi Inc has high historical volatility and very poor performance
	The company reported the last year's revenue of 1.92 B. Reported Net Loss for the year was (12.1 M) with profit before taxes, overhead, and interest of 490.4 M.
	Valhi Inc has a poor financial position based on the latest SEC disclosures
	About 92.0% of the company outstanding shares are owned by insiders
	On 26th of September 2024 Valhi paid $ 0.08 per share dividend to its current shareholders
	Latest headline from thelincolnianonline.com: Valhi Sees Large Volume Increase Whats Next

Valhi uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Valhi Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Valhi's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	14th of March 2024 Upcoming Quarterly Report	View
	31st of December 2023 Next Fiscal Quarter End	View

Earnings surprises can significantly impact Valhi's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Valhi's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2023-05-04	2023-03-31	-0.14	-0.17	-0.03	21
1995-04-26	1995-03-31	0.4	0.44	0.04	10
2024-03-07	2023-12-31	0.05	0.14	0.09	180
2014-05-09	2014-03-31	0.12	0.0281	-0.0919	76
2020-05-07	2020-03-31	0.72	0.84	0.12	16
2020-03-12	2019-12-31	0.48	0.36	-0.12	25
2016-05-09	2016-03-31	-0.84	-0.72	0.12	14
2015-03-13	2014-12-31	0.48	0.6	0.12	25

Know Valhi's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Valhi is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Valhi Inc backward and forwards among themselves. Valhi's institutional investor refers to the entity that pools money to purchase Valhi's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
American Century Companies Inc	2024-09-30	14.3 K
Vanguard Group Inc	2024-09-30	14 K
Morgan Stanley - Brokerage Accounts	2024-06-30	12.9 K
Advisory Services Network, Llc	2024-06-30	12.7 K
Cwa Asset Management Group, Llc	2024-09-30	12.2 K
Strs Ohio	2024-09-30	11.1 K
Nuveen Asset Management, Llc	2024-06-30	10.6 K
Howland Capital Management Inc	2024-09-30	10 K
Penn Mutual Asset Management Llc	2024-09-30	8.3 K
Bridgeway Capital Management, Llc	2024-06-30	219.7 K
Blackrock Inc	2024-06-30	177.7 K

Note, although Valhi's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Valhi's market capitalization trends

The company currently falls under 'Small-Cap' category with a total capitalization of 750.38 M.

Market Cap

948.29 Million

Valhi's profitablity analysis

	Last Reported	Projected for Next Year
Return On Capital Employed	(0.01)	(0.01)
Return On Equity	(0.01)	(0.01)

The company has Net Profit Margin of 0.04 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.08 %, which entails that for every 100 dollars of revenue, it generated $0.08 of operating income.

Determining Valhi's profitability involves analyzing its financial statements and using various financial metrics to determine if Valhi is a good buy. For example, gross profit margin measures Valhi's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Valhi's profitability and make more informed investment decisions.

Evaluate Valhi's management efficiency

Valhi Inc has Return on Asset of 0.0301 % which means that on every $100 spent on assets, it made $0.0301 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1052 %, implying that it generated $0.1052 on every 100 dollars invested. Valhi's management efficiency ratios could be used to measure how well Valhi manages its routine affairs as well as how well it operates its assets and liabilities. The Valhi's current Return On Tangible Assets is estimated to increase to -0.0049. The Valhi's current Return On Capital Employed is estimated to increase to -0.0083. As of now, Valhi's Debt To Assets are decreasing as compared to previous years.

	Last Reported	Projected for Next Year
Book Value Per Share	44.26	46.48
Tangible Book Value Per Share	30.94	32.49
Enterprise Value Over EBITDA	9.10	7.99
Price Book Value Ratio	0.46	0.44
Enterprise Value Multiple	9.10	7.99
Price Fair Value	0.46	0.44
Enterprise Value	844.8 M	1.5 B

Examining the leadership quality of Valhi Inc offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.

Dividend Yield

0.0123

Forward Dividend Yield

0.0123

Forward Dividend Rate

0.32

Beta

1.29

Basic technical analysis of Valhi Stock

As of the 22nd of November, Valhi has the Risk Adjusted Performance of 0.046, coefficient of variation of 2022.55, and Semi Deviation of 5.16. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Valhi Inc, as well as the relationship between them.

Valhi's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Valhi insiders, such as employees or executives, is commonly permitted as long as it does not rely on Valhi's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Valhi insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Terri Herrington over three months ago Acquisition by Terri Herrington of 10000 shares of Valhi subject to Rule 16b-3
		Darci Scott over three months ago Insider Trading
		Harold Simmons Foundation Inc over six months ago Disposition of 300000 shares by Harold Simmons Foundation Inc of Valhi at 6.3677 subject to Rule 16b-3
		Simmons Harold C over a year ago Acquisition or disposition of Valhi securities by Simmons Harold C
		Mary Tidlund over a year ago Acquisition by Mary Tidlund of 1500 shares of Valhi subject to Rule 16b-3

Valhi's Outstanding Corporate Bonds

Valhi issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Valhi Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Valhi bonds can be classified according to their maturity, which is the date when Valhi Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Dana 575 percent Corp Bond US235822AB96	View
	Volcan Compania Minera Corp Bond USP98047AC08	View
	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MPLX LP 4875 Corp Bond US55336VAG59	View
	MPLX LP 4125 Corp Bond US55336VAK61	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	International Game Technology Corp Bond US460599AD57	View

View All Valhi Corporate Bonds

Understand Valhi's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Valhi's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.046
	Market Risk Adjusted Performance	0.1131
	Mean Deviation	3.96
	Semi Deviation	5.16
	Downside Deviation	5.5
	Coefficient Of Variation	2022.55
	Standard Deviation	5.89
	Variance	34.66
	Information Ratio	0.0332
	Jensen Alpha	0.0481
	Total Risk Alpha	(0.39)
	Sortino Ratio	0.0356
	Treynor Ratio	0.1031
	Maximum Drawdown	45.51
	Value At Risk	(7.20)
	Potential Upside	8.19
	Downside Variance	30.23
	Semi Variance	26.66
	Expected Short fall	(4.64)
	Skewness	(0.03)
	Kurtosis	5.89

	Risk Adjusted Performance	0.046
	Market Risk Adjusted Performance	0.1131
	Mean Deviation	3.96
	Semi Deviation	5.16
	Downside Deviation	5.5
	Coefficient Of Variation	2022.55
	Standard Deviation	5.89
	Variance	34.66
	Information Ratio	0.0332
	Jensen Alpha	0.0481
	Total Risk Alpha	(0.39)
	Sortino Ratio	0.0356
	Treynor Ratio	0.1031
	Maximum Drawdown	45.51
	Value At Risk	(7.20)
	Potential Upside	8.19
	Downside Variance	30.23
	Semi Variance	26.66
	Expected Short fall	(4.64)
	Skewness	(0.03)
	Kurtosis	5.89

Consider Valhi's intraday indicators

Valhi intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Valhi stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	993.88
	Daily Balance Of Power	0.2417
	Rate Of Daily Change	1.01
	Day Median Price	27.31
	Day Typical Price	27.14
	Market Facilitation Index	1.0E-4
	Price Action Indicator	(0.36)
	Period Momentum Indicator	0.29
	Relative Strength Index	36.56

Valhi Corporate Filings

10Q	7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations	View Verify
8K	30th of July 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
F4	24th of May 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
	21st of May 2024 Other Reports	View Verify

Valhi time-series forecasting models is one of many Valhi's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Valhi's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Valhi Stock media impact

Far too much social signal, news, headlines, and media speculation about Valhi that are available to investors today. That information is available publicly through Valhi media outlets and privately through word of mouth or via Valhi internal channels. However, regardless of the origin, that massive amount of Valhi data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Valhi news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Valhi relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Valhi's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Valhi alpha.

Valhi Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Valhi can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

When determining whether Valhi Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Valhi's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Valhi Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Valhi Inc Stock: