Recent News
On March 5, 2026 the company declared a regular quarterly cash dividend of $0.08 per share, payable March 31, 2026 to shareholders of record March 16, 2026.
Valhi filed proxy materials announcing its 2026 annual meeting for May 21, 2026 in Dallas, Texas.
The company posted its annual report / 10‑K covering the fiscal year ended December 31, 2025, documenting recent operating developments and disclosures.
Technical Analysis
Directional indicators show no established trend: ADX at 16.92 signals a lack of strong directional momentum, implying range-bound behavior unless trend strength increases.
DI+ at 17.08 is decreasing while DI‑ at 14.89 is increasing; that split reads as bearish pressure from negative directional movement and lowers the probability of an immediate breakout to the upside.
MACD at 0.12 sits below its signal line at 0.14 with a decreasing MACD_trend, indicating contracting bullish momentum and a short-term bearish momentum bias unless MACD crosses back above the signal line.
MRO at 27.85 with a peak-and-reversal pattern indicates price sits above the regression target and faces downside pressure from momentum exhaustion.
RSI at 52.08 and decreasing places the stock in neutral territory but sliding toward weaker momentum; this aligns with the ADX reading and suggests limited immediate follow-through higher.
Price sits inside the Bollinger band range (lower ~ $14.29; upper ~ $14.96) and trades marginally below the 20‑day average ($14.63) and 12‑day EMA ($14.55 decreasing), indicating short-term consolidation near the mid‑band rather than a strong trend.
Ichimoku components place price roughly at the leading span boundary (Senkou B at $14.53), implying near-term equilibrium between support and resistance provided by the cloud; traders should note the proximity to cloud lines for potential range support.
Fundamental Analysis
Liquidity stands as the clearest strength: cash of $214,000,000 and cash and short‑term investments of $216,900,000, paired with operating cash flow of $100,600,000 and free cash flow of $89,800,000, produce a free cash flow yield of 23.07%, a meaningful cash‑generation metric that underpins the WMDST valuation of under‑valued.
Profitability remains challenged: EBIT of $‑66,500,000 yields an EBIT margin of -13.45%, below the industry peer mean of -0.65% yet above the industry peer low of -24.01%; EBITDA totaled $‑49,100,000 and net income registered $‑53,200,000, reflecting ongoing operating losses despite positive cash flows.
Top-line trends show material contraction year‑over‑year: revenue of $494,500,000 alongside a YoY revenue decline of -81.91% and a QoQ change that likewise registers negative; that drop drove margin compression even as cash generation stayed resilient.
Capital structure displays moderate leverage: total debt $611,600,000 yields debt‑to‑assets of 23.23%, below the industry peer mean of 48.10%, and debt‑to‑equity of 59.77%; interest expense remains elevated relative to earnings (interest coverage negative), pressuring profitability until earnings recover.
Working capital and efficiency metrics highlight operational friction: a cash conversion cycle of 155.69 days sits well above the industry peer mean of 51.86 days, while inventory days (139.14) and receivables turnover (1.58) point to slow conversion of sales into cash—partially offset by a strong current ratio of 2.80 and quick ratio of 1.33.
Market multiples present an undervalued picture relative to peers: price‑to‑book at 0.38x and price‑to‑sales at 0.79x both sit below the industry peer means (book ~1.25x; sales ~1.77x). Forward P/E of 16.39x compares with an analyst price‑target mean of $15.66 against a closing price of $14.53, consistent with the WMDST under‑valued assessment.
Valuation summary: WMDST values the stock as under‑valued based on high absolute cash balances, substantial free cash flow yield, and conservative market multiples, balanced against steep YoY revenue decline and negative operating margins that must improve to justify multiple rerating.
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 % |
|