📊 VHI Key Takeaways
Is Valhi Inc. /DE/ (VHI) a Good Investment?
Valhi faces severe operational cash flow challenges with -$46.1M OCF and -$56.7M FCF, indicating the business cannot sustain itself organically despite positive accounting profits. Combined with deteriorating margins (0.4% net), negative revenue growth (-1.3% YoY), and collapsing EPS (-153.3% YoY), the company exhibits fundamental business weakness that threatens financial stability absent near-term operational improvement.
Valhi Inc. /DE/ Key Strengths (VHI)
- Adequate liquidity position with 3.25x current ratio and $193.7M cash balance
- Moderate leverage at 0.61x debt-to-equity with manageable debt structure
- Maintains $2.6B asset base providing some financial cushion
VHI Stock Risks: Valhi Inc. /DE/ Investment Risks
- Negative operating cash flow (-$46.1M) indicates business cannot generate cash internally, unsustainable over time
- Negative free cash flow (-$56.7M, -10.1% FCF margin) will deplete cash reserves if not corrected
- Interest coverage of 2.2x is tight with limited cushion for debt servicing amid deteriorating profitability
- Revenue and earnings declining YoY with net margin compressed to 0.4%, indicating operational distress
- Extremely weak returns (0.2% ROE, 0.1% ROA) suggest capital is not being deployed efficiently
Key Metrics to Watch
- Operating cash flow trend - critical to return to positive generation
- Gross margin sustainability in industrial chemicals segment
- Interest coverage ratio - must remain above 2.5x to avoid refinancing risk
- Cash balance trajectory - monitor depletion rate given negative FCF
Valhi Inc. /DE/ (VHI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.25x current ratio provides a solid financial cushion.
VHI Profit Margin, ROE & Profitability Analysis
VHI vs Materials Sector: How Valhi Inc. /DE/ Compares
How Valhi Inc. /DE/ compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Valhi Inc. /DE/ Stock Overvalued? VHI Valuation Analysis 2026
Based on fundamental analysis, Valhi Inc. /DE/ shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Valhi Inc. /DE/ Balance Sheet: VHI Debt, Cash & Liquidity
VHI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Valhi Inc. /DE/'s revenue has remained relatively flat over the 5-year period, with a 8% decline. The most recent EPS of $-0.35 indicates the company is currently unprofitable.
VHI Revenue Growth, EPS Growth & YoY Performance
VHI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $538.6M | $2.0M | $0.07 |
| Q3 2025 | $503.5M | -$4.4M | $-0.15 |
| Q2 2025 | $540.4M | $900.0K | $0.03 |
| Q1 2025 | $530.6M | $7.8M | $0.27 |
| Q3 2024 | $468.9M | -$5.8M | $-0.21 |
| Q2 2024 | $507.1M | -$3.2M | $-0.11 |
| Q1 2024 | $492.7M | -$4.9M | $-0.17 |
| Q3 2023 | $468.9M | -$6.0M | $-0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Valhi Inc. /DE/ Dividends, Buybacks & Capital Allocation
VHI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Valhi Inc. /DE/ (CIK: 0000059255)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 22, 2026 | 4 | xslF345X06/form4-05222026_120513.xml | View → |
| May 22, 2026 | 4 | xslF345X06/form4-05222026_120513.xml | View → |
| May 22, 2026 | 4 | xslF345X06/form4-05222026_120505.xml | View → |
| May 22, 2026 | 4 | xslF345X06/form4-05222026_120504.xml | View → |
| May 22, 2026 | 4 | xslF345X06/form4-05222026_120552.xml | View → |
❓ Frequently Asked Questions about VHI
What is the AI rating for VHI?
Valhi Inc. /DE/ (VHI) has an AI grade of C with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VHI's key strengths?
Claude: Adequate liquidity position with 3.25x current ratio and $193.7M cash balance. Moderate leverage at 0.61x debt-to-equity with manageable debt structure.
What are the risks of investing in VHI?
Claude: Negative operating cash flow (-$46.1M) indicates business cannot generate cash internally, unsustainable over time. Negative free cash flow (-$56.7M, -10.1% FCF margin) will deplete cash reserves if not corrected.
What is VHI's revenue and growth?
Valhi Inc. /DE/ reported revenue of $560.1M.
Does VHI pay dividends?
Valhi Inc. /DE/ pays dividends, with $2.3M distributed to shareholders in the trailing twelve months.
Where can I find VHI SEC filings?
Official SEC filings for Valhi Inc. /DE/ (CIK: 0000059255) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VHI's EPS?
Valhi Inc. /DE/ has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is VHI's fundamental grade?
Based on our AI fundamental analysis in June 2026, Valhi Inc. /DE/ has a C grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is VHI stock overvalued or undervalued?
Valuation metrics for VHI: ROE of 0.2% (sector avg: 14%), net margin of 0.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is VHI's AI grade for 2026?
Our dual AI analysis gives Valhi Inc. /DE/ a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VHI's free cash flow?
Valhi Inc. /DE/'s operating cash flow is $-46.1M, with capital expenditures of $10.6M. FCF margin is -10.1%.
How does VHI compare to other Materials stocks?
Vs Materials sector averages: Net margin 0.4% (avg: 10%), ROE 0.2% (avg: 14%), current ratio 3.25 (avg: 1.6).