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what it is
Valhi sells titanium dioxide pigment, makes locks, runs utilities, and develops land.
how it gets paid
Last year Valhi made $2.1B in revenue. Titanium dioxide pigments was the main engine at $1.5B, or 71% of sales.
why growth slowed
Revenue fell 1.3% last year. 16.5% gross margin mattered most because it shows how much sales turned into profit before overhead.
what just happened
Valhi posted $1.6B of revenue, while EPS stayed at -$0.15 in the latest quarter.
At a glance
C+ balance sheet — struggling to keep the lights on
15/100 earnings predictability — expect surprises
19.3x trailing p/e — priced about right
2.4% dividend yield — cash in your pocket every quarter
8.7% return on capital — nothing to write home about
xvary composite: 30/100 — weak
What they do
Valhi sells titanium dioxide pigment, makes locks, runs utilities, and develops land.
KRONOS is the kind of brand you do not replace on a whim. Valhi has 2,524 employees and sells through agents and distributors. You are not buying a sleek app business. You are buying a heavy, annoying business that still ships product.
How they make money
$2.1B
annual revenue · their business grew -1.3% last year
Titanium dioxide pigments
$1.5B
2.0%
Component products
$0.2B
0.0%
Utility services
$0.2B
+3.0%
Real estate management & development
$0.2B
+5.0%
The products that matter
manufactures titanium dioxide pigment
Titanium Dioxide (TiO2)
$1.8B · 86% of revenue
this segment drives the company. Management says a 10% drop in pigment prices could erase operating profit. That's concentration risk stated plainly.
core profit driver
makes mechanical and electrical components
Component Products
$0.2B · 10% of revenue
about $200M in sales gives you some diversification on paper. In human-speak: it is too small to save you from a bad chemicals cycle.
secondary business
owns property and other smaller assets
Real Estate & Other
$0.1B · 4% of revenue
roughly $100M in revenue adds a little ballast, but not much. If the chemicals segment stumbles, this piece does not change the verdict.
small stabilizer
Key numbers
$2.1B
annual revenue
You are looking at a $2.1B business inside a $384M stock. The market is pricing it like a problem, not a giant.
3.0%
operating margin
For every $100 of sales, Valhi keeps $3 before interest and tax. That leaves little room for a rough year.
$678M
long-term debt
Debt at this size means the stock has less cushion. A bad year can hit equity fast.
2.4%
dividend yield
You are getting a 2.4% cash payout while waiting. That is income, not insulation.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 4 — safer than 20% of stocks
- price stability 20 / 100
- long-term debt $678M (64% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for VHI right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Valhi posted $1.6B of revenue, while EPS stayed at -$0.15 in the latest quarter.
Revenue rose 214% vs. prior year, but gross margin was only 16.5%. The business moved a lot of product and still did not produce positive earnings.
$1.6B
revenue
-$0.15
eps
16.5%
gross margin
the number that mattered
16.5% gross margin mattered most because it shows how much sales turned into profit before overhead.
source: EDGAR SEC filing
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What could go wrong
Valhi does not have a long list of equal risks. It has one dominant exposure and several amplifiers. If TiO2 pricing rolls over again, the debt load and low earnings visibility make the damage worse.
high
titanium dioxide price declines
Chemicals generated $1.8B of the company's $2.1B in annual revenue. Management says a 10% drop in pigment pricing could erase operating profit.
direct hit to the segment that pays the bills
med
debt load in a downcycle
Long-term debt is $678M, or 64% of capital, and the balance sheet grade is C+. If margins compress, debt stops being a footnote and becomes the main character.
less room to absorb weak pricing or a longer slump
med
low earnings visibility
Earnings predictability is 15 / 100, and the latest quarter missed by $0.13 per share. When investors cannot trust the next quarter, they rarely pay up for the stock.
valuation stays capped even if the stock looks cheap on old earnings
low
the smaller segments stay too small
Component products and real estate together make up 14% of revenue. If they stay there, the company keeps wearing a diversified label without getting diversified economics.
cheap can stay cheap because the story never broadens
The bear case is simple: weak TiO2 pricing hits the segment that drives 86% of revenue while $678M of debt limits flexibility. What would soften that view: higher chemical prices, better volumes, and debt moving down together.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
chemical pricing and volume in the same quarter
This is the heartbeat. Better pricing helps. Better volume helps. You want both together. One without the other is only a partial repair.
risk
debt versus operating profit
Long-term debt is $678M. If operating profit shrinks again, the balance sheet starts driving the conversation more than the dividend or the revenue headline.
calendar
next 10-Q or 10-K language on chemicals
For this stock, filings matter because management commentary on selling prices, volumes, and debt tells you more than broad market chatter ever will.
trend
whether 14% of revenue ever becomes more than a footnote
Component products and real estate together are still only 14% of revenue. If that share does not rise, you still own one cycle with extra labels attached.
Analyst rankings
earnings predictability
15 / 100
A 15 / 100 score means the earnings line moves around more than most stocks. in human-speak, analysts do not have a clean handle on the next few quarters.
risk rank
4
Risk rank 4 means this stock is safer than only about 20% of stocks in the coverage set. That is a warning label, not a compliment.
source: institutional data
Institutional activity
institutional ownership data for VHI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$13
current price
n/a
target midpoint · n/a from current
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