← Back to All US Stocks

Valhi Inc. /DE/ (VHI) Stock Fundamental Analysis & AI Rating 2026

VHI NYSE Industrial Inorganic Chemicals DE CIK: 0000059255
Recently Updated • Analysis: Apr 18, 2026 • SEC Data: 2025-12-31
STRONG SELL
80% Conf
Pending
Analysis scheduled

📊 VHI Key Takeaways

Revenue: $2.1B
Net Margin: -2.8%
Free Cash Flow: $-82.1M
Current Ratio: 2.80x
Debt/Equity: 0.58x
EPS: $-2.02
AI Rating: STRONG SELL with 80% confidence
Valhi Inc. /DE/ (VHI) receives a STRONG SELL rating with 80% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $2.1B, net profit margin of -2.8%, and return on equity (ROE) of -5.6%, Valhi Inc. /DE/ demonstrates mixed fundamentals in the Materials sector. Below is our complete VHI stock analysis for 2026.

Is Valhi Inc. /DE/ (VHI) a Good Investment?

Claude

Valhi exhibits critical operational deterioration with negative operating cash flow of -$35.5M, negative free cash flow of -$82.1M, and dangerously low interest coverage of 1.1x, signaling imminent debt service stress. The company is unprofitable with a -2.8% net margin despite positive operating income, indicating substantial non-operating drains. Current liquidity masks an unsustainable cash-burning trajectory that threatens financial viability.

Why Buy Valhi Inc. /DE/ Stock? VHI Key Strengths

Claude
  • + Strong liquidity position with 2.80x current ratio and $214M cash reserves provides near-term runway
  • + Positive operating income of $63.3M demonstrates core industrial chemicals business retains some profitability
  • + Moderate leverage with 0.58x debt-to-equity ratio offers restructuring flexibility if needed

VHI Stock Risks: Valhi Inc. /DE/ Investment Risks

Claude
  • ! Negative operating cash flow of -$35.5M reveals core business is destroying value; fundamentally unsustainable
  • ! Interest coverage of 1.1x is critically insufficient; minimal margin before covenant violations and credit events
  • ! Net loss of -$57.6M with declining revenue indicates operational model is broken; company-wide value destruction

Key Metrics to Watch

Claude
  • * Operating cash flow - urgent inflection needed; negative cash burn is terminal if sustained
  • * Interest coverage ratio - must reach 1.5x minimum within 2 quarters or debt restructuring likely
  • * Net margin recovery - requires evidence of pricing power, cost reduction, or operational restructuring

Valhi Inc. /DE/ (VHI) Financial Metrics & Key Ratios

Revenue
$2.1B
Net Income
$-57.6M
EPS (Diluted)
$-2.02
Free Cash Flow
$-82.1M
Total Assets
$2.6B
Cash Position
$214.0M

💡 AI Analyst Insight

Strong liquidity with a 2.80x current ratio provides a solid financial cushion.

VHI Profit Margin, ROE & Profitability Analysis

Gross Margin 14.2%
Operating Margin 3.0%
Net Margin -2.8%
ROE -5.6%
ROA -2.2%
FCF Margin -4.0%

VHI vs Materials Sector: How Valhi Inc. /DE/ Compares

How Valhi Inc. /DE/ compares to Materials sector averages

Net Margin
VHI -2.8%
vs
Sector Avg 10.0%
VHI Sector
ROE
VHI -5.6%
vs
Sector Avg 14.0%
VHI Sector
Current Ratio
VHI 2.8x
vs
Sector Avg 1.6x
VHI Sector
Debt/Equity
VHI 0.6x
vs
Sector Avg 0.6x
VHI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Valhi Inc. /DE/ Stock Overvalued? VHI Valuation Analysis 2026

Based on fundamental analysis, Valhi Inc. /DE/ shows some fundamental concerns relative to the Materials sector in 2026.

Return on Equity
-5.6%
Sector avg: 14%
Net Profit Margin
-2.8%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.58x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Valhi Inc. /DE/ Balance Sheet: VHI Debt, Cash & Liquidity

Current Ratio
2.80x
Quick Ratio
1.33x
Debt/Equity
0.58x
Debt/Assets
0.0%
Interest Coverage
1.11x
Long-term Debt
$590.9M

VHI Revenue & Earnings Growth: 5-Year Financial Trend

VHI 5-year financial data: Year 2021: Revenue $2.3B, Net Income $49.2M, EPS $1.73. Year 2022: Revenue $2.3B, Net Income $55.2M, EPS $1.94. Year 2023: Revenue $2.3B, Net Income $127.2M, EPS $4.46. Year 2024: Revenue $2.2B, Net Income $87.2M, EPS $3.06. Year 2025: Revenue $2.1B, Net Income -$9.9M, EPS $-0.35.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Valhi Inc. /DE/'s revenue has remained relatively flat over the 5-year period, with a 8% decline. The most recent EPS of $-0.35 indicates the company is currently unprofitable.

VHI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-4.0%
Free cash flow / Revenue

VHI Quarterly Earnings & Performance

Quarterly financial performance data for Valhi Inc. /DE/ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $503.5M -$4.4M $-0.15
Q2 2025 $540.4M $900.0K $0.03
Q1 2025 $530.6M $7.8M $0.27
Q3 2024 $468.9M -$5.8M $-0.21
Q2 2024 $507.1M -$3.2M $-0.11
Q1 2024 $492.7M -$4.9M $-0.17
Q3 2023 $468.9M -$6.0M $-0.21
Q2 2023 $507.1M -$5.1M $-0.18

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Valhi Inc. /DE/ Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$35.5M
Cash generated from operations
Capital Expenditures
$46.6M
Investment in assets
Dividends Paid
$9.1M
Returned to shareholders

VHI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Valhi Inc. /DE/ (CIK: 0000059255)

📋 Recent SEC Filings

Date Form Document Action
Apr 1, 2026 DEF 14A vhl-20260521xdef14a.htm View →
Mar 10, 2026 8-K vhl-20260310x8k.htm View →
Mar 10, 2026 10-K vhl-20251231x10k.htm View →
Mar 5, 2026 8-K vhl-20260305x8k.htm View →
Dec 15, 2025 8-K vhl-20251209x8k.htm View →

Frequently Asked Questions about VHI

What is the AI rating for VHI?

Valhi Inc. /DE/ (VHI) has an AI rating of STRONG SELL with 80% confidence, based on fundamental analysis of SEC EDGAR filings.

What are VHI's key strengths?

Claude: Strong liquidity position with 2.80x current ratio and $214M cash reserves provides near-term runway. Positive operating income of $63.3M demonstrates core industrial chemicals business retains some profitability.

What are the risks of investing in VHI?

Claude: Negative operating cash flow of -$35.5M reveals core business is destroying value; fundamentally unsustainable. Interest coverage of 1.1x is critically insufficient; minimal margin before covenant violations and credit events.

What is VHI's revenue and growth?

Valhi Inc. /DE/ reported revenue of $2.1B.

Does VHI pay dividends?

Valhi Inc. /DE/ pays dividends, with $9.1M distributed to shareholders in the trailing twelve months.

Where can I find VHI SEC filings?

Official SEC filings for Valhi Inc. /DE/ (CIK: 0000059255) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is VHI's EPS?

Valhi Inc. /DE/ has a diluted EPS of $-2.02.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is VHI a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Valhi Inc. /DE/ has a STRONG SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is VHI stock overvalued or undervalued?

Valuation metrics for VHI: ROE of -5.6% (sector avg: 14%), net margin of -2.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

Should I buy VHI stock in 2026?

Our dual AI analysis gives Valhi Inc. /DE/ a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is VHI's free cash flow?

Valhi Inc. /DE/'s operating cash flow is $-35.5M, with capital expenditures of $46.6M. FCF margin is -4.0%.

How does VHI compare to other Materials stocks?

Vs Materials sector averages: Net margin -2.8% (avg: 10%), ROE -5.6% (avg: 14%), current ratio 2.80 (avg: 1.6).

Top Rated Stocks
NSSC 92% MLI 92% MELI 92% MDXG 92% MANH 92% INVA 92% GGG 92% GCT 92% FTNT 92% FSLR 92%
Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 18, 2026 | Data as of: 2025-12-31 | Powered by Claude AI