# Valhi Inc. (VHI) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Basic Materials / Chemicals. Price $17.83, market value $505 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Valhi Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.5×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 6.0×**. Enterprise value is 6.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.4%** (5-yr avg 2.8%). Free cash flow equals 12.4% of the market value, above its five-year average of 2.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 14.7%**. Valhi Inc. keeps 14.7% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.6%**. 3.6% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: -2.8%**. The company reported a net loss over the last twelve months.
- **Return on equity: -5.6%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 4.4%**. Return on all capital, debt included, is 4.4%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -1.9%**. Each dollar of assets produces -1.9% of profit.

## Growth
- **Revenue growth (1 yr): -1.3%** (3-yr -2.2%/yr, 5-yr 2.3%/yr). Revenue fell 1.3% over the last year, against 2.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -153.3%**. Earnings per share fell 153.3%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.58**. Debt is 0.58 times equity, moderate leverage.
- **Net debt / EBITDA: 2.6×**. It would take 2.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 2.80** (quick 2.80). Current assets cover the next year's liabilities 2.80 times.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.79%** ($0.32 per share, trailing). Valhi Inc. yields 1.79%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): -7.8%/yr** (1-yr 0.0%). The dividend has not grown over five years.

## Price and momentum
- **Total return (1 yr): 13.2%** (YTD 49.7%, 3-mo 25.7%). The shares are up 13.2% over twelve months including dividends.
- **From 52-week high: -7.1%** (55.9% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 61**. An RSI of 61 is neutral.
- **Beta (1 yr): 0.85** (volatility 50%). Beta of 0.85 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=VHI · Page: https://foliofundamentals.com/stocks/vhi

Not investment advice.