Valhi Inc (VHI) Stock Analysis
Verdict: AVOID
Valhi trades at a steep 0.33x P/B asset discount due to severe TiO2 pigment cyclicality — cash flow recovery hinges on plant utilization and titanium dioxide pricing rebound.
Investment score: 39/100
Analysis as of
Is Valhi Inc stock worth reviewing? The TradeMates thesis
The model evaluates Valhi as an AVOID due to high earnings volatility, negative 2025 FCF (-$82.1M USD), and heavy analyst sell sentiment, despite trading at a deep 0.33x price-to-book valuation.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 40/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 45/100 (weight 10%)
- Analyst Consensus: 20/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Valhi Inc opportunities and risks
What speaks for VHI
- Deep balance sheet discount to net book value
What speaks against VHI
- Titanium dioxide (TiO2) pricing and demand degradation
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| VHI | n/a | 0.2x | 7.9x | 14.7% | -1.8% | 15.1% |
| SCL | n/a | 0.6x | 12.5x | 11.8% | -0.1% | -2.4% |
| ECVT | n/a | 1.3x | 9.8x | 21.0% | -7.1% | 6.5% |
| FTK | 23.2x | 3.1x | 18.5x | 24.5% | 13.0% | -0.6% |
| RYAM | n/a | 0.3x | 7.8x | 5.9% | -9.6% | -7.7% |
| ASPN | n/a | 2.2x | n/a | 2.7% | -62.4% | 8.4% |
| Peer median | n/a | 1.3x | 9.8x | 11.8% | -7.1% | -0.6% |
Frequently asked questions about Valhi Inc (VHI)
Is VHI stock a good investment?
The TradeMates model rates Valhi Inc as AVOID with an investment score of 39/100. The model evaluates Valhi as an AVOID due to high earnings volatility, negative 2025 FCF (-$82.1M USD), and heavy analyst sell sentiment, despite trading at a deep 0.33x price-to-book valuation. This is algorithmic model output, not personal investment advice.
Is VHI stock a buy?
The TradeMates model verdict for VHI is AVOID with an investment score of 39/100. Treat this as a model signal to review, not a personal buy recommendation.