Is Valhi Stock a Good Investment?

Valhi Investment Advice

VHI

To provide specific investment advice or recommendations on Valhi Inc stock, we recommend investors consider the following general factors when evaluating Valhi Inc. This will help you to make an informed decision on whether to include Valhi in one of your diversified portfolios:

Examine Valhi's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Valhi's leadership team and their track record. Good management can help Valhi navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Valhi's business and its evolving consumer preferences.
Compare Valhi's performance and market position to its competitors. Analyze how Valhi is positioned in terms of product offerings, innovation, and market share.
Check if Valhi pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Valhi's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Valhi Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Valhi Inc is a good investment.

Sell

Buy

Hold

Our advice tool can cross-verify current analyst consensus on Valhi and to analyze the firm potential to grow in the current economic cycle. To make sure Valhi Inc is not overpriced, please validate all Valhi fundamentals, including its book value per share, retained earnings, and the relationship between the cash and equivalents and target price . Given that Valhi Inc has a price to earning of 12.38 X, we advise you to double-check Valhi Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance	Modest	Details
Volatility	Somewhat reliable	Details
Hype Condition	Under hyped	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Below Average	Details
Economic Sensitivity	Hyperactively responds to market trends	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Poor	Details
Financial Leverage	Inapplicable	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Valhi Stock

Researching Valhi's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 92.0% of the company outstanding shares are owned by insiders. The company has Price to Book (P/B) ratio of 0.46. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Valhi Inc has Price/Earnings To Growth (PEG) ratio of 0.32. The entity recorded a loss per share of 0.42. The firm last dividend was issued on the 8th of March 2024. Valhi had 1:12 split on the 2nd of June 2020.

To determine if Valhi is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Valhi's research are outlined below:

	Valhi Inc had very high historical volatility over the last 90 days
	The company reported the last year's revenue of 1.92 B. Reported Net Loss for the year was (12.1 M) with profit before taxes, overhead, and interest of 490.4 M.
	Valhi Inc has a poor financial position based on the latest SEC disclosures
	About 92.0% of the company outstanding shares are owned by insiders
	On 26th of March 2024 Valhi paid $ 0.08 per share dividend to its current shareholders
	Latest headline from news.google.com: StockNews.com Initiates Coverage on Valhi - Defense World

Valhi uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Valhi Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Valhi's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	14th of March 2024 Upcoming Quarterly Report	View
	31st of December 2023 Next Fiscal Quarter End	View

Earnings surprises can significantly impact Valhi's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Valhi's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2023-05-04	2023-03-31	-0.14	-0.17	-0.03	21
1995-04-26	1995-03-31	0.4	0.44	0.04	10
2024-03-07	2023-12-31	0.05	0.14	0.09	180
2014-05-09	2014-03-31	0.12	0.0281	-0.0919	76
2020-05-07	2020-03-31	0.72	0.84	0.12	16
2020-03-12	2019-12-31	0.48	0.36	-0.12	25
2016-05-09	2016-03-31	-0.84	-0.72	0.12	14
2015-03-13	2014-12-31	0.48	0.6	0.12	25

Valhi Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Valhi target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Valhi's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.

One

Hold

Most Valhi analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Valhi stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Valhi Inc, talking to its executives and customers, or listening to those companies' conference calls.

Macroaxis Advice Exposure Valuation

Valhi Target Price Projection

Valhi's current and average target prices are 15.12 and 11.00, respectively. The current price of Valhi is the price at which Valhi Inc is currently trading. On the other hand, Valhi's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Valhi Market Quote on 8th of May 2024

Low Price	14.9	Odds
High Price	15.25	Odds

15.12 Target Price

Analyst Consensus On Valhi Target Price

Low Estimate	10.01	Odds
High Estimate	12.21	Odds

11.0

Historical

Lowest Forecast 10.01

Target Price 11.0

Highest Forecast 12.21

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Valhi Inc and the information provided on this page.

Valhi Analyst Ratings

Valhi's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Valhi stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Valhi's financials, market performance, and future outlook by experienced professionals. Valhi's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Valhi's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Valhi is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Valhi Inc backward and forwards among themselves. Valhi's institutional investor refers to the entity that pools money to purchase Valhi's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Jacobs Levy Equity Management, Inc.	2023-09-30	18.1 K
Howland Capital Management Inc	2023-12-31	15.1 K
American Century Companies Inc	2023-12-31	14.1 K
Strs Ohio	2023-12-31	11.8 K
Vanguard Group Inc	2023-12-31	11.1 K
Nuveen Asset Management, Llc	2023-12-31	10.6 K
Martingale Asset Management L P	2023-12-31	10.4 K
Morgan Stanley - Brokerage Accounts	2023-12-31	9.3 K
Bank Of America Corp	2023-12-31	7.7 K
Bridgeway Capital Management, Llc	2023-12-31	204.9 K
Blackrock Inc	2023-12-31	191.2 K

Note, although Valhi's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Valhi's market capitalization trends

The company currently falls under 'Small-Cap' category with a total capitalization of 428.57 M. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Valhi's market, we take the total number of its shares issued and multiply it by Valhi's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

948.29 Million

Valhi's profitablity analysis

Valhi's profitability indicators refer to fundamental financial ratios that showcase Valhi's ability to generate income relative to its revenue or operating costs. If, let's say, Valhi is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, Valhi's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of Valhi's profitability requires more research than a typical breakdown of Valhi's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.01)	(0)
Return On Capital Employed	(0.01)	(0.01)
Return On Assets	(0)	(0)
Return On Equity	(0.01)	(0.01)

The company has Net Profit Margin of (0.01) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 0.02 %, which entails that for every 100 dollars of revenue, it generated $0.02 of operating income.

Determining Valhi's profitability involves analyzing its financial statements and using various financial metrics to determine if Valhi is a good buy. For example, gross profit margin measures Valhi's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Valhi's profitability and make more informed investment decisions.

The data published in Valhi's official financial statements usually reflect Valhi's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Valhi Inc. For example, before you start analyzing numbers published by Valhi accountants, it's critical to develop an understanding of what Valhi's liquidity, profitability, and earnings quality are in the context of the Chemicals space in which it operates.

Please note, the presentation of Valhi's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Valhi's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Valhi's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Valhi Inc. Please utilize our Beneish M Score to check the likelihood of Valhi's management manipulating its earnings.

Evaluate Valhi's management efficiency

The Valhi's current Return On Tangible Assets is estimated to increase to -0.0049. The Valhi's current Return On Capital Employed is estimated to increase to -0.01. As of now, Valhi's Debt To Assets are decreasing as compared to previous years. Valhi's management efficiency ratios could be used to measure how well Valhi manages its routine affairs as well as how well it operates its assets and liabilities.

	Last Reported	Projected for Next Year
Book Value Per Share	32.84	34.48
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	30.94	32.49
Enterprise Value Over EBITDA	26.13	13.60
Price Book Value Ratio	0.46	0.44
Enterprise Value Multiple	26.13	13.60
Price Fair Value	0.46	0.44
Enterprise Value	844.8 M	1.5 B

The analysis of Valhi's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Valhi's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Valhi Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Dividend Yield

0.0211

Forward Dividend Yield

0.0211

Forward Dividend Rate

0.32

Beta

1.397

Basic technical analysis of Valhi Stock

As of the 8th of May, Valhi has the Semi Deviation of 2.62, coefficient of variation of 2092.04, and Risk Adjusted Performance of 0.0379. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Valhi Inc, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We have analyze and collected data for nineteen technical drivers for Valhi Inc, which can be compared to its competition. Please validate Valhi Inc standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected short fall to decide if Valhi is priced more or less accurately, providing market reflects its prevalent price of 15.12 per share. Given that Valhi Inc has jensen alpha of 0.0029, we advise you to double-check Valhi Inc's current market performance to make sure the company can sustain itself at a future point.

Valhi's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Valhi insiders, such as employees or executives, is commonly permitted as long as it does not rely on Valhi's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Valhi insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Harold Simmons Foundation Inc over a month ago Disposition of 300000 shares by Harold Simmons Foundation Inc of Valhi at 6.3677 subject to Rule 16b-3
		Simmons Harold C over six months ago Acquisition or disposition of Valhi securities by Simmons Harold C
		Mary Tidlund over six months ago Acquisition by Mary Tidlund of 1500 shares of Valhi subject to Rule 16b-3

Understand Valhi's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Valhi's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0379
	Market Risk Adjusted Performance	0.0766
	Mean Deviation	2.53
	Semi Deviation	2.62
	Downside Deviation	2.85
	Coefficient Of Variation	2092.04
	Standard Deviation	3.17
	Variance	10.04
	Information Ratio	0.0241
	Jensen Alpha	0.0029
	Total Risk Alpha	(0.19)
	Sortino Ratio	0.0267
	Treynor Ratio	0.0666
	Maximum Drawdown	13.06
	Value At Risk	(4.04)
	Potential Upside	6.02
	Downside Variance	8.13
	Semi Variance	6.88
	Expected Short fall	(2.93)
	Skewness	0.3951
	Kurtosis	(0.09)

	Risk Adjusted Performance	0.0379
	Market Risk Adjusted Performance	0.0766
	Mean Deviation	2.53
	Semi Deviation	2.62
	Downside Deviation	2.85
	Coefficient Of Variation	2092.04
	Standard Deviation	3.17
	Variance	10.04
	Information Ratio	0.0241
	Jensen Alpha	0.0029
	Total Risk Alpha	(0.19)
	Sortino Ratio	0.0267
	Treynor Ratio	0.0666
	Maximum Drawdown	13.06
	Value At Risk	(4.04)
	Potential Upside	6.02
	Downside Variance	8.13
	Semi Variance	6.88
	Expected Short fall	(2.93)
	Skewness	0.3951
	Kurtosis	(0.09)

Consider Valhi's intraday indicators

Valhi intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Valhi stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	91.55
	Daily Balance Of Power	(0.09)
	Rate Of Daily Change	1.0
	Day Median Price	15.08
	Day Typical Price	15.09
	Market Facilitation Index	1.0E-4
	Price Action Indicator	0.03
	Period Momentum Indicator	(0.03)
	Relative Strength Index	42.08

Valhi Corporate Filings

	5th of April 2024 Other Reports	View Verify
	3rd of April 2024 Other Reports	View Verify
10K	7th of March 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance	View Verify
8K	29th of February 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

Valhi time-series forecasting models is one of many Valhi's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Valhi's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Valhi Stock media impact

Far too much social signal, news, headlines, and media speculation about Valhi that are available to investors today. That information is available publicly through Valhi media outlets and privately through word of mouth or via Valhi internal channels. However, regardless of the origin, that massive amount of Valhi data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Valhi news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Valhi relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Valhi's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Valhi alpha.

Valhi Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Valhi can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Valhi without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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How to buy Valhi Stock?

Examine Valhi's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Valhi's leadership team and their track record. Good management can help Valhi navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Specialty Chemicals space and any emerging trends that could impact Valhi's business and its evolving consumer preferences.
Compare Valhi's performance and market position to its competitors. Analyze how Valhi is positioned in terms of product offerings, innovation, and market share.
Check if Valhi pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Valhi's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in Valhi Inc?

The danger of trading Valhi Inc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Valhi is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Valhi. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Valhi Inc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Valhi Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Valhi's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Valhi Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Valhi Inc Stock: