VHI
Valhi, Inc. (VHI) Scenario Analysis Analysis (2026)
Overall Score
Base Case
Valuation remains inexpensive with EV/Sales at 0.39x and P/FCF at 7.3x.
Liquidity is solid with a current ratio of 3.37x and quick ratio of 1.90x.
Profitability is still weak, with negative net margin (-1.8%) and ROE (-3.7%).
Bull Case
A recovery in margins could re-rate the stock given the low sales multiple and positive free cash flow yield of 13.7%.
Strong working capital and manageable near-term liquidity provide room for operational improvement.
Bear Case
Negative operating margin (-0.3%) and interest coverage below 1.0x keep downside risk elevated.
Net debt to EBITDA of 4.7x leaves the balance sheet sensitive if earnings remain weak.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
🔒 Go Beyond This Framework
This is one of 10 institutional-grade frameworks Invetso runs on Valhi, Inc.. Unlock the complete analysis — SWOT, Economic Moat, Porter’s Five Forces, Management, PESTLE and the Invetso Quality Score.