📊 VHI Key Takeaways
Is Valhi Inc. /DE/ (VHI) a Good Investment?
Valhi exhibits critical operational deterioration with negative operating cash flow of -$35.5M, negative free cash flow of -$82.1M, and dangerously low interest coverage of 1.1x, signaling imminent debt service stress. The company is unprofitable with a -2.8% net margin despite positive operating income, indicating substantial non-operating drains. Current liquidity masks an unsustainable cash-burning trajectory that threatens financial viability.
Why Buy Valhi Inc. /DE/ Stock? VHI Key Strengths
- Strong liquidity position with 2.80x current ratio and $214M cash reserves provides near-term runway
- Positive operating income of $63.3M demonstrates core industrial chemicals business retains some profitability
- Moderate leverage with 0.58x debt-to-equity ratio offers restructuring flexibility if needed
VHI Stock Risks: Valhi Inc. /DE/ Investment Risks
- Negative operating cash flow of -$35.5M reveals core business is destroying value; fundamentally unsustainable
- Interest coverage of 1.1x is critically insufficient; minimal margin before covenant violations and credit events
- Net loss of -$57.6M with declining revenue indicates operational model is broken; company-wide value destruction
Key Metrics to Watch
- Operating cash flow - urgent inflection needed; negative cash burn is terminal if sustained
- Interest coverage ratio - must reach 1.5x minimum within 2 quarters or debt restructuring likely
- Net margin recovery - requires evidence of pricing power, cost reduction, or operational restructuring
Valhi Inc. /DE/ (VHI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.80x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $507.1M | -$5.1M | $-0.18 |
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
❓ Frequently Asked Questions about VHI
What is the AI rating for VHI?
Valhi Inc. /DE/ (VHI) has an AI rating of STRONG SELL with 80% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VHI's key strengths?
Claude: Strong liquidity position with 2.80x current ratio and $214M cash reserves provides near-term runway. Positive operating income of $63.3M demonstrates core industrial chemicals business retains some profitability.
What are the risks of investing in VHI?
Claude: Negative operating cash flow of -$35.5M reveals core business is destroying value; fundamentally unsustainable. Interest coverage of 1.1x is critically insufficient; minimal margin before covenant violations and credit events.
What is VHI's revenue and growth?
Valhi Inc. /DE/ reported revenue of $2.1B.
Does VHI pay dividends?
Valhi Inc. /DE/ pays dividends, with $9.1M 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 $-2.02.
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 rating reflects both perspectives for balanced insights.
Is VHI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Valhi Inc. /DE/ has a STRONG SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VHI stock overvalued or undervalued?
Valuation metrics for VHI: ROE of -5.6% (sector avg: 14%), net margin of -2.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy VHI stock in 2026?
Our dual AI analysis gives Valhi Inc. /DE/ a combined STRONG SELL rating 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 $-35.5M, with capital expenditures of $46.6M. FCF margin is -4.0%.
How does VHI compare to other Materials stocks?
Vs Materials sector averages: Net margin -2.8% (avg: 10%), ROE -5.6% (avg: 14%), current ratio 2.80 (avg: 1.6).