VHIValhi, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.8×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VHI?
Valhi, Inc. earns 4.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.6 points below what the capital costs: growth destroys value
- Operating margin
- 3.6%
Operating margin · Chemicals median −1.6% · 12 months to Q2 2026
- Cash conversion
- 1.81×
Cash conversion · −0.56× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 10% |
| FY2021 | 14% |
| FY2022 | 11% |
| FY2023 | 1.8% |
| FY2024 | 10% |
| FY2025 | 3.0% |
Details›
- Gross margin12 months to Q2 2026
- 15%
- Operating margin12 months to Q2 2026
- 3.6%
- Net margin12 months to Q2 2026
- −2.4%
- Free cash flow margin
- 2.9%
- Revenue, trailing twelve months
- $2.16B
- Free cash flow, trailing twelve months
- $63M
- Net income, trailing twelve months
- −$51M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.