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On April 14, 2026 Valhi announced it expects to issue first-quarter 2026 results after market close on May 7, 2026. On March 5, 2026 the board declared a regular quarterly cash dividend of $0.08 per share, payable March 31, 2026 to holders of record March 16, 2026.
Technical Analysis
Directional indicators show an emerging trend: ADX sits at 21.61, consistent with an emerging trend rather than a strong directional move, which tempers conviction in any breakout or breakdown in the coming weeks.
DI+ exhibits a peak-and-reversal while DI- shows a dip-and-reversal; both patterns point toward increased downside pressure from directional indicators, reinforcing bearish directional momentum for the near term.
MACD presents a mixed read: the MACD line currently sits above its signal line (MACD 0.19 versus signal 0.14), which reflects a recent bullish crossover, but the MACD trend shows a peak-and-reversal, indicating bearish momentum pressure has returned after that crossover.
MRO reads 26.61 and the oscillator trend increases; because the MRO sits positive, price sits above the model target and carries a higher probability of mean reversion downward over the near term, given the rising oscillator.
RSI at 51.81 has peaked and reversed, signaling loss of upward momentum from neutral levels rather than an overbought condition; that peak-and-reversal pushes short-term bias lower despite the mid-50s value.
Price sits below the short-term EMAs and near the 20-day average: the 12-day EMA at $14.60 and the 20-day average at $14.51 both lie above the close of $14.32, while the 50-day average ($14.07) sits below current price. This configuration implies recent strength has faded and the stock trades between short- and medium-term moving-average support and resistance.
Bollinger band placement shows the close near the mid-band (lower 1σ $14.08, upper 1σ $14.93), consistent with reduced directional volatility; 42-day beta at 0.62 versus 52-week beta 1.06 suggests shorter-term volatility compressed relative to the longer-term baseline.
Fundamental Analysis
Profitability remains challenged: EBIT stands at -$66.5M with an EBIT margin of -13.45%, which sits above the industry peer low but below the industry peer mean and median for EBIT margin (industry peer mean -0.65%, industry peer median -0.141%). EBIT margin QoQ changed by -10.27448% and YoY changed by -1.78869%.
Revenue dropped: YoY revenue growth measures -81.906% and QoQ revenue growth shows -73.828%; total revenue totaled $494.5M for the period. Gross margin compressed to 6.916% with a YoY decline of -66.939% and a QoQ drop of -42.539%, indicating margin pressure in core chemicals operations.
Balance-sheet and liquidity indicators present strength: cash and short-term investments total $216.9M, operating cash flow $100.6M, and free cash flow $89.8M, yielding a free cash flow yield of 23.07%, which sits above the industry peer mean for free cash flow yield (industry peer mean 7.682%). Current ratio equals 2.80 and quick ratio 1.33, both above typical peer averages, while the cash ratio registers 0.48; net working capital of $809.8M supports near-term obligations.
Leverage and coverage show stress in earnings terms yet manageable nominal debt: total debt $611.6M and debt-to-equity 0.598 (59.8%). Interest coverage remains negative at -4.38x, reflecting operating losses relative to interest expense; debt-to-EBITDA registers negative due to EBITDA of -$49.1M.
Market multiples sit below typical peers: price-to-book equals 0.380 (below the industry peer mean of 1.254), and price-to-sales equals 0.787 (below the industry peer mean of 1.773). Forward P/E stands near 16.39 based on forward EPS $0.81. WMDST values the stock as under-valued given the firm’s cash generation profile and low market multiples despite negative operating margins.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-05 |
| NEXT REPORT DATE: | 2026-05-07 |
| CASH FLOW | Begin Period Cash Flow | $ 223.9 M |
| Operating Cash Flow | $ 100.6 M | |
| Capital Expenditures | $ -10.80 M | |
| Change In Working Capital | $ 146.5 M | |
| Dividends Paid | $ -2.30 M | |
| Cash Flow Delta | $ 4.8 M | |
| End Period Cash Flow | $ 228.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 494.5 M | |
| Forward Revenue | $ -53.64 M | |
| COSTS | ||
| Cost Of Revenue | $ 460.3 M | |
| Depreciation | $ 17.4 M | |
| Depreciation and Amortization | $ 17.4 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 537.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 34.2 M | |
| EBITDA | $ -49.10 M | |
| EBIT | $ -66.50 M | |
| Operating Income | $ -42.80 M | |
| Interest Income | $ 4.2 M | |
| Interest Expense | $ 15.2 M | |
| Net Interest Income | $ -11.00 M | |
| Income Before Tax | $ -81.70 M | |
| Tax Provision | $ -18.40 M | |
| Tax Rate | 22.521 % | |
| Net Income | $ -53.20 M | |
| Net Income From Continuing Operations | $ -63.30 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 0.81 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.6 B | |
| Intangible Assets | $ 382.3 M | |
| Net Tangible Assets | $ 640.9 M | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 216.9 M | |
| Cash | $ 214.0 M | |
| Net Receivables | $ 285.1 M | |
| Inventory | $ 659.8 M | |
| Long-Term Investments | $ 26.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 231.3 M | |
| Short-Term Debt | $ 800.0 K | |
| Total Current Liabilities | $ 449.3 M | |
| Net Debt | $ 377.7 M | |
| Total Debt | $ 611.6 M | |
| Total Liabilities | $ 1.3 B | |
| EQUITY | ||
| Total Equity | $ 1.0 B | |
| Retained Earnings | $ 508.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 35.90 | |
| Shares Outstanding | 28.500 M | |
| Revenue Per-Share | $ 17.35 | |
| VALUATION | Market Capitalization | $ 389.2 M |
| Enterprise Value | $ 783.9 M | |
| Enterprise Multiple | -15.966 | |
| Enterprise Multiple QoQ | -141.914 % | |
| Enterprise Multiple YoY | -563.854 % | |
| Enterprise Multiple IPRWA | high: 70.624 median: 70.624 mean: 24.233 VHI: -15.966 low: -210.451 |
|
| EV/R | 1.585 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.573 | |
| Asset To Liability | 2.075 | |
| Debt To Capital | 0.374 | |
| Debt To Assets | 0.232 | |
| Debt To Assets QoQ | -7.644 % | |
| Debt To Assets YoY | 723.609 % | |
| Debt To Assets IPRWA | high: 1.142 mean: 0.481 median: 0.43 VHI: 0.232 low: 0.001 |
|
| Debt To Equity | 0.598 | |
| Debt To Equity QoQ | -8.355 % | |
| Debt To Equity YoY | 683.908 % | |
| Debt To Equity IPRWA | high: 2.392 median: 1.452 mean: 0.711 VHI: 0.598 low: -4.417 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.38 | |
| Price To Book QoQ | -7.943 % | |
| Price To Book YoY | -35.048 % | |
| Price To Book IPRWA | high: 2.791 median: 1.517 mean: 1.254 VHI: 0.38 low: -0.19 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 0.787 | |
| Price To Sales QoQ | -8.442 % | |
| Price To Sales YoY | -37.621 % | |
| Price To Sales IPRWA | high: 2.234 median: 2.157 mean: 1.773 VHI: 0.787 low: 0.026 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 16.391 | |
| Forward PE/G | — | |
| Forward P/S | -7.255 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 565.575 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.185 | |
| Asset Turnover Ratio QoQ | 0.609 % | |
| Asset Turnover Ratio YoY | 7.43 % | |
| Asset Turnover Ratio IPRWA | high: 0.278 median: 0.209 mean: 0.205 VHI: 0.185 low: 0.078 |
|
| Receivables Turnover | 1.585 | |
| Receivables Turnover Ratio QoQ | 6.728 % | |
| Receivables Turnover Ratio YoY | 6.849 % | |
| Receivables Turnover Ratio IPRWA | high: 4.902 mean: 2.892 median: 2.736 VHI: 1.585 low: 1.418 |
|
| Inventory Turnover | 0.682 | |
| Inventory Turnover Ratio QoQ | 8.346 % | |
| Inventory Turnover Ratio YoY | 13.195 % | |
| Inventory Turnover Ratio IPRWA | high: 1.901 median: 1.701 mean: 1.598 VHI: 0.682 low: 0.414 |
|
| Days Sales Outstanding (DSO) | 57.573 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 155.694 | |
| Cash Conversion Cycle Days QoQ | -5.455 % | |
| Cash Conversion Cycle Days YoY | 0.834 % | |
| Cash Conversion Cycle Days IPRWA | high: 207.951 VHI: 155.694 mean: 51.862 median: 48.873 low: -6.528 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.611 | |
| CapEx To Revenue | -0.022 | |
| CapEx To Depreciation | -0.621 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.6 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ 640.9 M | |
| Net Working Capital | $ 809.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.483 | |
| Current Ratio | 2.802 | |
| Current Ratio QoQ | -22.911 % | |
| Current Ratio YoY | 24.108 % | |
| Current Ratio IPRWA | VHI: 2.802 high: 2.797 median: 1.773 mean: 1.662 low: 0.757 |
|
| Quick Ratio | 1.334 | |
| Quick Ratio QoQ | -24.336 % | |
| Quick Ratio YoY | 11.829 % | |
| Quick Ratio IPRWA | high: 2.743 VHI: 1.334 median: 1.197 mean: 1.075 low: 0.498 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -12.456 | |
| Cost Of Debt | 1.819 % | |
| Interest Coverage Ratio | -4.375 | |
| Interest Coverage Ratio QoQ | -992.985 % | |
| Interest Coverage Ratio YoY | -170.96 % | |
| Interest Coverage Ratio IPRWA | high: 0.641 median: -0.076 mean: -0.608 VHI: -4.375 low: -5.09 |
|
| Operating Cash Flow Ratio | 0.253 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 41.02 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | -23.13 | |
| Dividend Payout Ratio | -0.043 | |
| Dividend Rate | $ 0.08 | |
| Dividend Yield | 0.006 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -3.071 % | |
| Revenue Growth | -1.787 % | |
| Revenue Growth QoQ | -73.828 % | |
| Revenue Growth YoY | -81.906 % | |
| Revenue Growth IPRWA | high: 4.581 % VHI: -1.787 % mean: -6.577 % median: -8.231 % low: -10.845 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 6.916 % | |
| Gross Margin QoQ | -42.539 % | |
| Gross Margin YoY | -66.939 % | |
| Gross Margin IPRWA | high: 32.09 % VHI: 6.916 % median: 4.724 % mean: 4.339 % low: -3.428 % |
|
| EBIT Margin | -13.448 % | |
| EBIT Margin QoQ | -1027.448 % | |
| EBIT Margin YoY | -178.869 % | |
| EBIT Margin IPRWA | high: 27.847 % median: -0.141 % mean: -0.65 % VHI: -13.448 % low: -24.011 % |
|
| Return On Sales (ROS) | -8.655 % | |
| Return On Sales QoQ | 156.368 % | |
| Return On Sales YoY | -150.759 % | |
| Return On Sales IPRWA | high: 27.785 % median: -1.001 % mean: -1.158 % VHI: -8.655 % low: -23.634 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 89.8 M | |
| Free Cash Flow Yield | 23.072 % | |
| Free Cash Flow Yield QoQ | -911.823 % | |
| Free Cash Flow Yield YoY | 320.408 % | |
| Free Cash Flow Yield IPRWA | high: 37.999 % VHI: 23.072 % mean: 7.682 % median: 6.912 % low: -1.652 % |
|
| Free Cash Growth | -830.081 % | |
| Free Cash Growth QoQ | 252.978 % | |
| Free Cash Growth YoY | -210.113 % | |
| Free Cash Growth IPRWA | high: 83.189 % median: 83.189 % mean: -35.993 % low: -681.982 % VHI: -830.081 % |
|
| Free Cash To Net Income | -1.688 | |
| Cash Flow Margin | 22.952 % | |
| Cash Flow To Earnings | -2.133 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -1.99 % | |
| Return On Assets QoQ | 145.679 % | |
| Return On Assets YoY | -343.873 % | |
| Return On Assets IPRWA | high: 1.15 % median: -0.419 % VHI: -1.99 % mean: -2.348 % low: -12.153 % |
|
| Return On Capital Employed (ROCE) | -3.046 % | |
| Return On Equity (ROE) | -0.052 | |
| Return On Equity QoQ | 145.352 % | |
| Return On Equity YoY | -336.211 % | |
| Return On Equity IPRWA | high: 0.637 mean: 0.059 median: -0.014 VHI: -0.052 low: -0.124 |
|
| DuPont ROE | -5.138 % | |
| Return On Invested Capital (ROIC) | -3.19 % | |
| Return On Invested Capital QoQ | -1046.588 % | |
| Return On Invested Capital YoY | -86.645 % | |
| Return On Invested Capital IPRWA | high: 13.636 % median: -0.041 % mean: -0.061 % VHI: -3.19 % low: -8.683 % |
|