Valhi Intrinsic Stock Value – VALHI Stock Soars to 12-Month High After Barclays Upgrades Price Target

🌥️Trending News

VALHI ($NYSE:VHI), Inc. is a diversified holding company that operates through its subsidiaries in the chemicals, component products, and waste management industries. The company’s subsidiaries include NL Industries, Inc., Kronos Worldwide, Inc., and CompX International Inc. VALHI specializes in manufacturing and marketing titanium dioxide pigments, specialty chemicals, and component products. On Thursday, VALHI’s stock experienced a surge in price after Barclays, a multinational investment bank, upgraded their price target for the company. Barclays increased their target from $11.00 to $14.00, causing the stock to reach a 12-month high. This upgrade from Barclays comes as a positive sign for VALHI and its investors.

However, with this new price target from Barclays, VALHI’s stock has shown resilience and potential for growth. One of the factors contributing to this upgrade is the performance of VALHI’s subsidiaries. NL Industries, one of VALHI’s key subsidiaries, has seen an increase in demand for its titanium dioxide pigments, which are used in various industries such as paints, plastics, and paper. This uptick in demand is expected to continue in the coming months, further boosting VALHI’s financial performance.

Additionally, Kronos Worldwide, another subsidiary of VALHI, has also been performing well. The company has reported strong sales and earnings in recent quarters, driven by increased demand for its titanium dioxide pigments from the construction industry. Moreover, VALHI’s component products business has also shown signs of growth. CompX International Inc., which manufactures security products and ergonomic computer support systems, has seen an increase in demand for its products as remote work and virtual learning have become the new normal. With the demand for its products increasing, VALHI is well-positioned for future growth and success.

Stock Price

The stock opened at $34.38 and closed at $33.7, only down by 1.72% from its previous closing price of $34.29. Barclays, a multinational investment bank, raised their price target for VALHI, a holding company that focuses on chemicals, metals, and real estate management. This upgrade from Barclays shows a growing confidence in VALHI’s future prospects and potential for growth. The company’s diversified portfolio and strategic focus on industries such as chemicals, metals, and real estate have proven to be successful, leading to impressive financial results.

Additionally, VALHI’s strong performance and promising outlook have attracted the attention of investors, resulting in a surge in stock prices. The company’s 12-month high is a testament to its resilience and ability to thrive even in uncertain market conditions. This latest development is not only good news for VALHI, but also for the overall industry it operates in. The company’s success can serve as an indicator of a potential economic recovery, as many businesses have been impacted by the ongoing pandemic. This is a result of the company’s strong performance and potential for growth, which have been recognized by investors and industry experts alike. It will be interesting to see how VALHI continues to navigate and capitalize on the current economic climate in the coming months. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Valhi. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Valhi. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Valhi. More…

Key Ratios Snapshot

Some of the financial key ratios for Valhi are shown below. More…

Analysis – Valhi Intrinsic Stock Value

After conducting a thorough analysis of the fundamentals of VALHI, I have determined that the current intrinsic value of its share is around $20.5. This calculation is based on our proprietary Valuation Line, which takes into account various factors such as the company’s financial performance, growth potential, and market trends. At its current trading price of $33.7, VALHI stock is overvalued by 64.4%. This implies that investors are paying a significantly higher price for the stock than its actual worth. This could be due to factors such as market speculation or high demand for the stock. However, from a fundamental analysis standpoint, there are several reasons why VALHI may be overvalued. Firstly, the company’s financial performance has not been strong in recent years, with declining revenues and profits. Additionally, there are concerns about its long-term sustainability in its current lines of business, as they are highly dependent on the cyclical nature of the market. Moreover, VALHI’s growth potential is limited, as it operates in mature industries with little room for expansion. This further decreases the company’s intrinsic value and justifies a lower stock price. Based on these factors, my analysis indicates that VALHI may be overvalued at its current trading price. Investors should carefully consider these factors before making any investment decisions regarding VALHI stock. 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, Inc., a company with a diverse portfolio ranging from chemicals to real estate, saw its stock hit a new 12-month high after an analyst upgrade. This move may be attributed to the company’s strong financials, with revenue growth and improved margins in recent years. Additionally, Valhi’s diverse business operations provide stability and potential for growth in different sectors. This positive sentiment from analysts may attract investors looking for potential long-term gains, but it is important to conduct thorough research and consider all factors before making investment decisions.