Growth For The Quarter Ended 2020-12-31
Valhi Inc does not report a significant amount of sales growth. It is not favorable. With that, traders will appreciate VHI’s gross profit margin of 22%. Last year, the company showed sales of $1849. 7 million.
VHI does not report substantial EBITDA growth. In spite of that, the company’s EBITDA ratio is equal to 10%. I do appreciate it. I do appreciate that net income grew a 80%. I think that net income grows because interest expenses diminished a -100%. D&A expense diminished a -100%.
Balance Sheet Statement As Of 2020-12-31
With an A/L ratio of more than 1x, VHI’s balance sheet looks stable. In Q4, the total amount of assets was equal to $2889 million, with total liabilities of $1882 million. VHI shows $518 million in cash. In my experience, the company is cash rich. I feel that shareholders will most likely appreciate it. The balance sheet shows deferred revenue of $20 million, which I like. Deferred revenue represents a prepayment by VHI’s clients that have yet to be delivered. Summarising, Valhi Inc receives money in advance of it being earned. Moreover, Valhi Inc has positive working capital, which investors will like. It means that VHI can cover its short-term liabilities when they come due.
VHI’s short term debt is less significant than the company’s cash. As for me, I think that Valhi Inc may not have to worry about any liquidity risk. Furthermore, the price/book value ratio is below 1. 5x, which means that VHI is undervalued. Valhi Inc has $2889 million in total assets, and $1882 million in total liabilities. I think that VHI is cheap. In addition, notice that the cash per share is equal to $18, and the stock price is $26. 31. VHI’s debt to equity ratio is below 2x. Summarising, the debt level appears to be under control. Note that Valhi Inc reports cash and cash equivalents of $518 million, and net debt of $270 million. With regards to the EV/EBITDA, Valhi Inc trades at 11. I think that investors will most likely appreciate this low figure. null
Quarterly Figures For The Quarter Ended 2020-12-31
In Q4 VHI reported quarterly sales of $516 million, and gross profit of $118 million. The gross profit margin was equal to 22%. In addition, VHI is profitable, which is favorable. Valhi Inc released positive quarterly EBITDA of $63. 4 million. I do appreciate it. VHI also released positive net income of $24. 5 million. In my experience, considering the quality of the business, I see room for VHI to grow into its valuation over time.
Valhi Inc has a market cap of $743 million. The enterprise value is equal to $728 million. With forward sales of $1849 million, VHI sells at less than 2x forward sales. In my view, traders will most likely believe that Valhi Inc is cheap. Institutional shareholders Advisory Services Network, LLC, California Public Employees’ Retirement System, and Mellon Investments Corporation are Valhi Inc investors. The company shows a beta of 2. 03823. It is more significant than 1, which means that the stock price can show substantial volatility. VHI’s stock price volatility is larger than that of the market. In summary, if you are not a volatility expert don’t trade Valhi Inc.
The following VHI’s insiders acquired or sold equity recently.VHI’s traders will most likely study this information:
+In 2020-11-13, director, officer: President and CEO GRAHAM ROBERT D acquired equity of VHI.
+In 2020-11-11, director, officer: President and CEO GRAHAM ROBERT D acquired stock of VHI.
+In 2020-11-11, director, officer: President and CEO GRAHAM ROBERT D acquired equity of VHI.
About Valhi Inc
Valhi, Inc. is a holding company. The Company operates through three segments: Chemicals, Component Products, and Real Estate Management and Development.