Valhi, Inc. (VHI)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Valhi, Inc. (VHI) trades at $14.55 with AI Score 46/100 (Grade C). Valhi, Inc. operates in the chemicals, component products, and real estate sectors. Market cap: $411.80M, Sector: Basic materials.
Price live · AI analysis from May 10, 2026Analyst Coverage for VHI: VHI does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates VHI against Basic Materials peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
VHI: the 1 perspectives are evenly split.
How is this calculated? →Valhi, Inc. (VHI) Materials & Commodity Exposure
Valhi, Inc. is a diversified holding company operating in chemicals, component products, and real estate. Its primary product is titanium dioxide (TiO2) sold under the KRONOS brand, alongside manufacturing locks and managing real estate, positioning it uniquely within the basic materials sector.
What Is the Investment Thesis for VHI?
Valhi, Inc. presents a diversified investment profile due to its operations across three distinct sectors: chemicals, component products, and real estate. The company's TiO2 production, marketed under the KRONOS brand, is a key revenue driver. However, with a negative profit margin of -3.4%, efficiency improvements are crucial. The dividend yield of 2.21% offers some return to investors. Growth catalysts include expansion in the real estate segment and increased demand for TiO2 in emerging markets. Potential risks include fluctuations in raw material costs and economic downturns affecting the demand for TiO2 and component products.
Based on FMP financials and quantitative analysis
VHI Key Highlights
- Market capitalization of $411.80M, indicating a mid-sized player in its diversified sectors.
- Negative profit margin of -3.4%, suggesting operational inefficiencies or challenging market conditions.
- Gross margin of 13.1%, reflecting the difference between revenue and the cost of goods sold.
- Beta of 1.11, indicating slightly higher volatility compared to the overall market.
- Dividend yield of 2.21%, providing a modest income stream for investors.
Who Are VHI's Competitors?
VHI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ASPI ASP Isotopes Inc. | $5.53 | -1.78% | $459.53M | 60 |
| CNSJF China Sanjiang Fine Chemicals Company Limited | $0.16 | +0.00% | $187.57M | 57 |
| UNVR Univar Solutions Inc. | $36.14 | +0.47% | $5.70B | 54 |
| ORGN Origin Materials, Inc. | $0.95 | -0.00% | $5.23M | 52 |
| BLGO BioLargo, Inc. | $0.11 | -0.45% | $35.30M | 46 |
| AHKSF Asahi Kasei Corporation | $11.20 | -0.88% | $15.19B | 46 |
| DOW Dow Inc. | $27.23 | -1.71% | $19.63B | 46 |
| FMST Foremost Clean Energy Ltd. | $1.57 | +4.28% | $19.60M | 46 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are VHI's Key Strengths?
- Diversified operations across multiple sectors.
- Established KRONOS brand in the TiO2 market.
- Real estate holdings provide a stable asset base.
- Long-standing history since 1932.
What Are VHI's Weaknesses?
- Negative profit margin (-3.4%).
- Dependence on cyclical industries.
- Limited information available compared to larger competitors.
- Subsidiary of Contran Corporation may limit strategic autonomy.
What Could Drive VHI Stock Higher?
- Potential increase in demand for TiO2 due to infrastructure projects in developing countries.
- Real estate development projects reaching completion and generating revenue.
- Cost reduction initiatives improving profit margins in the chemicals segment.
What Are the Key Risks for VHI?
- Financial-distress signal — its Altman Z-Score of 1.67 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-7.0%) — the business is not currently generating profit on shareholder capital.
- Fluctuations in raw material costs affecting TiO2 production.
- Economic downturns reducing demand for TiO2, component products, and real estate.
- Increased competition in the TiO2 market from larger chemical companies.
- Regulatory changes affecting real estate development projects.
What Are the Growth Opportunities for VHI?
- Expansion of TiO2 Production Capacity: The global titanium dioxide market is projected to grow, driven by increased demand from the paints and coatings industry. Valhi can capitalize on this by expanding its production capacity and targeting high-growth regions in Asia Pacific. This expansion could increase revenue by 10-15% over the next three years, assuming effective capacity utilization and market penetration.
- Strategic Real Estate Development: Valhi's real estate segment can focus on developing land holdings in high-demand areas for commercial and residential purposes. Identifying and developing properties in rapidly growing urban centers could significantly boost revenue and asset value. Successful development projects could increase the segment's contribution to overall revenue by 20% within five years.
- Product Innovation in Component Products: The component products segment can invest in research and development to create innovative locking mechanisms and stainless steel components for new applications. This includes developing smart locking systems for security and access control. Successful innovation could lead to a 15% increase in sales within three years.
- Geographic Diversification in TiO2 Sales: Valhi can diversify its TiO2 sales by expanding its presence in emerging markets such as India and Southeast Asia, where demand for paints, plastics, and coatings is growing rapidly. Establishing distribution networks and partnerships in these regions could increase TiO2 sales by 10% annually over the next five years.
- Acquisition of Complementary Businesses: Valhi can pursue strategic acquisitions of companies in the chemicals, component products, or real estate sectors to expand its product offerings, geographic reach, and market share. Acquiring companies with complementary technologies or customer bases could create synergies and drive revenue growth. A well-executed acquisition strategy could increase overall revenue by 20% within five years.
What Opportunities Does VHI Have?
- Expansion in emerging markets for TiO2 sales.
- Strategic real estate development in high-demand areas.
- Product innovation in component products.
- Acquisition of complementary businesses.
What Threats Does VHI Face?
- Fluctuations in raw material costs.
- Economic downturns affecting demand for TiO2 and component products.
- Increased competition in the TiO2 market.
- Regulatory changes affecting real estate development.
What Are VHI's Competitive Advantages?
- Diversified Business Segments: Reduces risk by operating in multiple sectors.
- Established Brand: KRONOS brand recognition in the TiO2 market.
- Real Estate Holdings: Provides a stable asset base and potential for development gains.
What Does VHI Do?
Valhi, Inc., incorporated in 1932 and based in Dallas, Texas, operates as a diversified holding company with interests in the chemicals, component products, and real estate sectors. The company's Chemicals segment is primarily engaged in producing and marketing titanium dioxide pigments (TiO2) under the KRONOS brand. TiO2 is a white inorganic pigment widely used in paints, plastics, decorative laminates, and paper manufacturing. Valhi distributes its TiO2 products through agents and distributors across the Asia Pacific, Europe, and North America. The Component Products segment manufactures mechanical and electrical cabinet locks, locking mechanisms for various applications, stainless steel exhaust components, and related hardware for performance boats. The Real Estate Management and Development segment focuses on providing utility services to industrial and municipal customers, owning real properties, and developing land holdings for commercial, industrial, and residential purposes. Valhi is a subsidiary of Contran Corporation, which allows it to leverage resources and expertise across different industries.
What Products and Services Does VHI Offer?
- Produces and markets titanium dioxide pigments (TiO2) under the KRONOS brand.
- Manufactures mechanical and electrical cabinet locks.
- Provides locking mechanisms for ignition systems, mailboxes, and file cabinets.
- Offers stainless steel exhaust components for performance boats.
- Provides utility services to industrial and municipal customers.
- Owns and develops real properties for commercial, industrial, and residential purposes.
How Does VHI Make Money?
- Chemicals Segment: Generates revenue through the production and sale of titanium dioxide pigments to paint, plastics, and paper manufacturers.
- Component Products Segment: Earns revenue from the manufacturing and sale of mechanical and electrical cabinet locks and stainless steel components.
- Real Estate Management and Development Segment: Derives revenue from providing utility services, property rentals, and the sale of developed land.
What Industry Does VHI Operate In?
Valhi, Inc. operates within the basic materials sector, specifically in the chemicals, component products, and real estate industries. The titanium dioxide market is influenced by construction, automotive, and packaging industries. The component products segment is tied to manufacturing and recreational vehicle markets. The real estate segment is subject to economic cycles and regional development trends. Competition in TiO2 includes major chemical companies, while the component products face smaller, specialized manufacturers. The real estate market is highly localized and competitive.
Who Are VHI's Key Customers?
- Chemicals Segment: Paint, plastics, decorative laminate, and paper manufacturers.
- Component Products Segment: Manufacturers of ignition systems, mailboxes, file cabinets, and performance boats.
- Real Estate Management and Development Segment: Industrial and municipal customers, commercial tenants, and residential buyers.
ROE -7%Key Financial Metrics
Return on equity for Valhi, Inc. stands at -7.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.8%, showing how much profit it generates from its asset base. Its free cash flow yield is 7.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.25 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -17.7%, the inverse of the P/E and a quick read on earnings relative to price.
How Valhi, Inc. Is Valued
Valhi, Inc. carries a market capitalization of $411.80M, placing it in the small-cap category. Relative to its peer group, VHI's quantitative score of 46/100 is roughly in line with the peer average of 54/100.
F-Score 4/9Financial Health
Valhi, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.67 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Valhi, Inc. revenue of about $2.07B for fiscal 2026, with EPS near $3.47.
VHI Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Valhi's future, indicating that executives believe the company is undervalued.
- Community sentiment has shifted positively, with discussions highlighting Valhi's strong position in the specialty chemicals market.
- Analysts are noting improvements in operational efficiency, which could lead to better profit margins moving forward.
- The company's strategic focus on expanding its product lines is resonating well with investors, fostering a sense of optimism.
Bear Case
- Concerns over supply chain disruptions persist, which could impact Valhi's ability to meet demand effectively.
- Market sentiment has been tempered by broader economic uncertainties, leading to cautious views on Valhi's growth potential.
- Some community discussions reflect skepticism about the sustainability of recent performance improvements, raising questions about long-term viability.
- Recent regulatory challenges in the chemicals industry could pose risks to Valhi's operational flexibility and profitability.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
VHI Latest News
-
Vitalhub Corp. (VHI:CA) Q1 2026 Earnings Call Transcript
seekingalpha.com · May 8, 2026
-
Earnings Scheduled For March 10, 2026
benzinga · Mar 10, 2026
-
Earnings Scheduled For May 8, 2025
benzinga · May 8, 2025
-
Stocks That Hit 52-Week Lows On Thursday
benzinga · Mar 16, 2023
VHI Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for VHI.
Price Targets
Wall Street price target analysis for VHI.
VHI MoonshotScore
What does this score mean?
The MoonshotScore rates VHI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Michael S. Simmons
CEO
Michael S. Simmons serves as the CEO of Valhi, Inc. His background includes extensive experience in managing diversified industrial operations. He has been involved in strategic planning and operational oversight for several years, focusing on improving efficiency and profitability across Valhi's various business segments. His leadership is focused on driving growth through strategic investments and operational improvements.
Track Record: Under Michael S. Simmons' leadership, Valhi, Inc. has focused on maintaining its market position in the TiO2 market and optimizing its real estate holdings. Key initiatives include streamlining operations to improve profit margins and exploring opportunities for strategic acquisitions. He has overseen efforts to enhance the company's component products segment through product innovation.
What Investors Ask About Valhi, Inc. (VHI) — Basic Materials
What does Valhi, Inc. do?
Valhi, Inc. is a diversified holding company operating through three segments: Chemicals, Component Products, and Real Estate Management and Development. The Chemicals segment produces titanium dioxide pigments (TiO2) used in various applications. The Component Products segment manufactures mechanical and electrical cabinet locks and related hardware. The Real Estate segment manages and develops land holdings for commercial, industrial, and residential purposes. This diversification allows Valhi to participate in multiple sectors, mitigating risk.
What do analysts say about VHI stock?
Analyst coverage of Valhi, Inc. (VHI) is limited, reflecting its smaller market capitalization and diversified business model. Key valuation metrics include its market capitalization of $411.80M and a dividend yield of 2.21%. The negative profit margin of -3.4% is a concern, while the gross margin of 13.1% indicates some profitability at the production level. Growth considerations include expansion in emerging markets and strategic real estate development.
What are the main risks for VHI?
The main risks for Valhi, Inc. include fluctuations in raw material costs, particularly for titanium dioxide production. Economic downturns could reduce demand for TiO2, component products, and real estate, impacting revenue. Increased competition in the TiO2 market from larger chemical companies poses a threat. Regulatory changes affecting real estate development could also impact the company's profitability and growth prospects.
What are the key factors to evaluate for VHI?
Valhi, Inc. (VHI) holds an AI score of 46/100 (low). Not financial advice.
How frequently does VHI data refresh on this page?
VHI prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven VHI's recent stock price performance?
Valhi, Inc. (VHI) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified operations across multiple sectors. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider VHI overvalued or undervalued right now?
Valuing Valhi, Inc. (VHI) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying VHI?
Before investing in Valhi, Inc. (VHI), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited analyst coverage may affect the accuracy of market sentiment analysis.
- Financial data is based on the most recent available information.