Valhi, Inc. (VHI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Proto Labs, Inc.

Koppers Holdings, Inc.

TETRA Technologies, Inc.

Mativ Holdings, Inc.

Westlake Chemical Partners LP

REX American Resources Corp.

Advansix, Inc.

Compass Minerals International, Inc.

Valhi, Inc.

Kronos Worldwide, Inc.

Lightwave Logic, Inc.

Why is Valhi, Inc. ?

INTEREST(9M) At USD 40.3 MM has Grown at 33.89%
INTEREST COVERAGE RATIO(Q) Lowest at 125.36
RAW MATERIAL COST(Y) Grown by 34.93% (YoY)

Below par performance in long term as well as near term

Along with generating -48.30% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Valhi, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Valhi, Inc.

-50.96%

-0.69

47.88%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.49%

EBIT Growth (5y)

10.28%

EBIT to Interest (avg)

4.31

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

1.31

Tax Ratio

33.66%

Dividend Payout Ratio

8.44%

Pledged Shares

Institutional Holding

5.46%

ROCE (avg)

15.43%

ROE (avg)

11.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.40

EV to EBIT

3.73

EV to EBITDA

2.83

EV to Capital Employed

0.56

EV to Sales

0.38

PEG Ratio

Dividend Yield

211.95%

ROCE (Latest)

15.03%

ROE (Latest)

16.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

NET PROFIT(9M)

At USD 36.16 MM has Grown at 183.97%

DIVIDEND PAYOUT RATIO(Y)

Highest at 253.16%

-22What is not working for the Company

INTEREST(9M)

At USD 40.3 MM has Grown at 33.89%

INTEREST COVERAGE RATIO(Q)

Lowest at 125.36

RAW MATERIAL COST(Y)

Grown by 34.93% (YoY

CASH AND EQV(HY)

Lowest at USD 447.1 MM

DEBT-EQUITY RATIO (HY)

Highest at 40.63 %

OPERATING PROFIT(Q)

Lowest at USD 17.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.2 %

PRE-TAX PROFIT(Q)

Lowest at USD -1.1 MM

NET PROFIT(Q)

Lowest at USD -7.13 MM

EPS(Q)

Lowest at USD 0.03

Here's what is working for Valhi, Inc.

Dividend Payout Ratio

Highest at 253.16%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Valhi, Inc.

Pre-Tax Profit

At USD -1.1 MM has Fallen at -101.67%

over average net sales of the previous four periods of USD 65.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -7.13 MM has Fallen at -123.58%

over average net sales of the previous four periods of USD 30.24 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 125.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 40.3 MM has Grown at 33.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 17.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 3.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -1.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -7.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 447.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 40.63 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 34.93% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.77 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income