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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mativ Holdings, Inc.

REX American Resources Corp.

Koppers Holdings, Inc.

Proto Labs, Inc.

TETRA Technologies, Inc.

Compass Minerals International, Inc.

Westlake Chemical Partners LP

Advansix, 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 -48.99% 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.

-24.76%

-0.75

49.15%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.39%

EBIT Growth (5y)

1.80%

EBIT to Interest (avg)

4.31

Debt to EBITDA (avg)

1.05

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

1.29

Tax Ratio

33.66%

Dividend Payout Ratio

8.44%

Pledged Shares

Institutional Holding

4.62%

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

0.39

EV to EBIT

7.76

EV to EBITDA

4.89

EV to Capital Employed

0.57

EV to Sales

0.41

PEG Ratio

Dividend Yield

57.59%

ROCE (Latest)

7.37%

ROE (Latest)

1.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-30What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -90.3 MM

DEBT-EQUITY RATIO (HY)

Highest at 44.13 %

INTEREST COVERAGE RATIO(Q)

Lowest at 9.4

PRE-TAX PROFIT(Q)

Lowest at USD -27.8 MM

NET PROFIT(Q)

Lowest at USD -42.4 MM

RAW MATERIAL COST(Y)

Grown by 46.92% (YoY

CASH AND EQV(HY)

Lowest at USD 440.3 MM

INTEREST(Q)

Highest at USD 14.9 MM

OPERATING PROFIT(Q)

Lowest at USD 1.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.28 %

EPS(Q)

Lowest at USD -0.78

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

Pre-Tax Profit

At USD -27.8 MM has Fallen at -150.2%

over average net sales of the previous four periods of USD 55.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -42.4 MM has Fallen at -284.74%

over average net sales of the previous four periods of USD 22.95 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 9.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at USD -27.8 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -42.4 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 44.13 % and Grown

In each half year 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

Operating Cash Flow

Lowest at USD -90.3 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

Highest at USD 14.9 MM

in the last five periods and Increased by 7.97% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 1.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 0.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at USD -0.78

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 440.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 46.92% (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