Investors: Is Valhi a Risk Worth Taking?
July 19, 2023
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Investors are often faced with the decision of whether or not to invest in Valhi ($NYSE:VHI). Should you take the plunge and invest in Valhi? To answer this question, it is important to understand who Valhi are and what they offer. Valhi is a Dallas, Texas based company that produces and markets specialty chemical products and components. They also own and operate a range of industrial businesses that produce specialty metals, filtration media, and other materials. The company has a strong record of profitability and has been able to maintain its success despite economic downturns. Their stock is traded on the New York Stock Exchange under the ticker symbol “VLH”. Valhi has been an attractive stock for investors due to its low price-to-earnings ratio and strong dividend yields.
Additionally, the company has been able to maintain consistent growth in recent years. For investors looking for a relatively safe investment, Valhi may be worth considering. Before investing in Valhi, however, it is important for investors to do their own research and understand the risks associated with the stock. Valhi is not without its risks, such as market volatility and the potential for economic downturns to negatively affect the company’s performance. Additionally, the company operates in a highly competitive industry and faces significant competition from other specialty chemical and material suppliers. As such, it is important to understand all of the potential risks before investing in Valhi. In conclusion, investors should weigh the potential rewards of investing in Valhi against the associated risks before making any decisions. With a strong record of profitability and consistent growth, Valhi may be a risk worth taking for some investors.
Market Price
As an investor, it is important to assess the risks and rewards associated with any stock before making an investment. In the case of Valhi (VALHI), the stock opened on Friday at $14.6 and closed at $14.3, a decrease of 1.9% from its last closing price of $14.6. This raises the question of whether Valhi is a risk worth taking. Investors must consider the potential risks and rewards associated with investing in Valhi stock. On the one hand, there is the potential to make a profit with the stock. On the other hand, there is the risk that the stock could decline further, resulting in a loss. Ultimately, it is up to the individual investor to assess the risk-reward ratio and decide if Valhi is a risk worth taking. The investor should weigh the potential risks and rewards before making any decisions. It is important to consider the company’s financials, news announcements, management team, and other factors that could influence its future performance.
Additionally, investors should use technical and fundamental analysis to make an informed decision about whether Valhi is a good investment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Valhi. More…
| Total Revenues | Net Income | Net Margin |
| 2.09k | 39.9 | 1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Valhi. More…
| Operations | Investing | Financing |
| -69.1 | -173.2 | -115.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Valhi. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.72k | 1.43k | 33.47 |
Key Ratios Snapshot
Some of the financial key ratios for Valhi are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.6% | -13.2% | 5.0% |
| FCF Margin | ROE | ROA |
| -6.6% | 6.9% | 2.4% |
Analysis
At GoodWhale, we examined the fundamentals of VALHI and concluded that it is a low risk investment in terms of financial and business aspects. Our Risk Rating was used to evaluate VALHI’s financial stability, and found it to be above average. We did detect one risk warning in the balance sheet, however, which is why we recommend that registered users take a closer look to make sure it is right for them. Through our analysis, we have concluded that VALHI is a safe investment with a low risk of loss. Valhi_a_Risk_Worth_Taking”>More…
Peers
The company operates in four segments: Titanium Dioxide, Fluorides, Performance Materials, and Energy. Valhi Inc has a market capitalization of $2.6 billion and its shares are traded on the New York Stock Exchange. Valhi Inc’s main competitors are PT Unggul Indah Cahaya Tbk, Brenntag SE, Diamines & Chemicals Ltd. Valhi Inc is the largest producer of titanium dioxide in the world with a market share of about 25%. PT Unggul Indah Cahaya Tbk is the second largest producer of titanium dioxide with a market share of about 15%. Brenntag SE is a leading chemical distributor with a global network of over 400 locations in 74 countries. Diamines & Chemicals Ltd is a leading manufacturer of specialty chemicals with operations in over 30 countries.
– PT Unggul Indah Cahaya Tbk ($IDX:UNIC)
PT Unggul Indah Cahaya Tbk is one of the largest companies in Indonesia with a market capitalization of 4.28 trillion as of 2022. The company has a strong focus on the mining and energy sectors and has a return on equity of 18.4%.
– Brenntag SE ($OTCPK:BNTGF)
Brenntag SE is a global chemical distribution company with a market cap of 9.51B as of 2022. The company has a return on equity of 16.33%. Brenntag SE operates in over 30 countries and serves more than 25,000 customers. The company offers a wide range of services such as sourcing, logistics, and distribution of chemicals and related products.
– Diamines & Chemicals Ltd ($BSE:500120)
Diamines & Chemicals Ltd is a publicly traded company with a market capitalization of 4.31 billion as of 2022. The company has a return on equity of 20.25%. Diamines & Chemicals Ltd is engaged in the manufacture and sale of chemicals. The company’s products are used in a variety of industries, including the textile, leather, plastics, and food industries.
Summary
VALHI is an investment with a degree of risk. The stock price is volatile and can change quickly, making it a risky investment for those not comfortable with short-term instability.
However, the company has a strong history of consistent returns over the long term and is well-positioned in the industry, particularly concerning its famous subsidiaries. Thus, while investing in VALHI may carry some risk, it could also yield lucrative rewards. Investors should review the company’s financial performance, analyze recent trends, and research the industry before making any decisions.
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