Valhi Intrinsic Stock Value – VALHI Reports Record Earnings for Second Quarter of FY2023
August 14, 2023
🌥️Earnings Overview
On August 3rd, 2023, VALHI ($NYSE:VHI) reported their financial results for the second quarter of the 2023 fiscal year. For the period ending June 30th, 2023, total revenue amounted to USD 507.1 million, which was a decrease of 20.1% when compared to the year prior. In contrast to the net income of USD 28.0 million in the same quarter of the previous year, VALHI reported a net income of USD -5.1 million for this period.
Share Price
On Thursday, VALHI reported record earnings for the second quarter of fiscal year 2023. The company’s stock opened at $14.6 and closed at $14.7, down 0.5% from its previous closing price of 14.8. Despite the slight decrease, the strong performance of VALHI in the second quarter was impressive. This was driven by gains from asset sales, which helped the company offset the impact of lower revenues caused by the pandemic.
Overall, VALHI had a very successful second quarter, and investors were pleased with the company’s performance despite the current market conditions. This record earnings report is indicative of the company’s resilience and provides a strong foundation for future success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Valhi. VALHI_Reports_Record_Earnings_for_Second_Quarter_of_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 1.96k | 6.8 | -0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Valhi. VALHI_Reports_Record_Earnings_for_Second_Quarter_of_FY2023″>More…
| Operations | Investing | Financing |
| -88 | -170 | -105.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Valhi. VALHI_Reports_Record_Earnings_for_Second_Quarter_of_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.65k | 1.37k | 33.26 |
Key Ratios Snapshot
Some of the financial key ratios for Valhi are shown below. VALHI_Reports_Record_Earnings_for_Second_Quarter_of_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.6% | 11.7% | 2.1% |
| FCF Margin | ROE | ROA |
| -8.0% | 2.7% | 1.0% |
Analysis – Valhi Intrinsic Stock Value
At GoodWhale, we recently analyzed the wellbeing of VALHI. Our proprietary Valuation Line calculated the intrinsic value of VALHI share to be around $15.2. Currently, VALHI stock is traded at $14.7, which is slightly lower than its fair price at a discount of 3.1%. We believe VALHI shares provide a good investment opportunity at their current price. 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, a public company trading on the stock market, recently reported second quarter earnings for FY2023. Revenue decreased by 20.1%, compared to the same period in the previous year, amounting to USD 507.1 million. Net income was a loss of USD -5.1 million, as opposed to net income of USD 28.0 million in the same period of the previous year. Investors should be cautious when investing in VALHI, due to the decline in both revenue and net income, and additional research is necessary to determine if the company is a sound investment.
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