VHI Valhi Inc

Valhi, Inc. is a holding company, which engages in the manufacture and marketing of titanium dioxide pigments. It operates through the following segments: Chemicals, Component Products, and Real Estate Management and Development. The Chemicals segment produces and markets titanium dioxide pigments for paints, plastics, paper, fibers, and ceramics. The Component Products segment includes security products, stainless steel exhaust systems, gauges, throttle controls, and trim tabs. The Real Estate Management and Development segment develops land holdings for commercial, industrial, and residential purposes. The company was founded in 1987 and is headquartered in Dallas, TX.

Company profile

Ticker

VHI

Exchange

NYSE

Website

www.valhi.net

CEO

Robert Dennis Graham

Incorporated in

Delaware

Location

Texas

Fiscal year end

Dec 31

Sector

Process Industries > Chemicals: Specialty

Industry (SEC)

Industrial Inorganic Chemicals

Venator Materials • Tronox • Linde • Kronos Worldwide • LSB Industries • Air Products & Chemicals • NL Industries • Minerals • Luxfer • Quantumsphere ...

SEC CIK

0000059255

Corporate docs

Articles of Incorporation & Bylaws

IRS number

870110150

VHI stock data

S&P 500

1M 1Y 2Y 5Y

FINRA relative short interest over last month (20 trading days) ?

Company financial data Financial data

Chart VHI financial data

Quarter (USD)	Dec 19	Sep 19	Jun 19	Mar 19
Revenue	414.1M	475.2M	528.6M	479.6M
Net income	10.8M	13.1M	7.1M	18.2M
Diluted EPS	0.03	0.04	0.02	0.05
Net profit margin	2.61%	2.76%	1.34%	3.79%
Operating income	25M	41.4M	65.9M	60.4M
Net change in cash	19.4M	33.9M	6.6M	-35.9M
Cash on hand	523.8M	504.4M	470.5M	463.9M
Cost of revenue	322.9M	376.8M	405.4M	357.8M

Annual (USD)	Dec 19	Dec 18	Dec 17	Dec 16
Revenue	1.9B	1.82B	1.88B	1.52B
Net income	49.2M	262.2M	207.5M	-15.9M
Diluted EPS	0.14	0.77	0.61	-0.05
Net profit margin	2.59%	14.41%	11.04%	-1.05%
Operating income	192.7M	370.7M	380.3M	119.2M
Net change in cash	24M	64.1M	276M	-42.6M
Cash on hand	523.8M	499.8M	435.7M	159.7M
Cost of revenue	1.46B	1.21B	1.27B	1.21B

Financial data from Valhi earnings reports

Recent insider trades

VHI insider ownership history Insider history

Date	Owner	Security	Transaction	Code	#Shares	#Remaining
23 May 19	Mary A. Tidlund	Common stock, $0.01 par value per share	Grant	Aquire A	10,000	16,900
23 May 19	Loretta J. Feehan	Common stock, $0.01 par value per share	Grant	Aquire A	10,000	19,900
23 May 19	Terri Herrington	Common stock, $0.01 par value per share	Grant	Aquire A	10,000	12,900
23 May 19	Thomas E Barry	Common stock, $0.01 par value per share	Grant	Aquire A	10,000	68,400

Data from 3, 4 and 5 filings. Stock values as filed, not updated for current price.

Institutional ownership Q4 2019

VHI institutional ownership history Ownership history

2.9% owned by funds/institutions

13F holders	Current	Prev Q	Change
Total holders	75	67	+11.9%
Opened positions	13	6	+116.7%
Closed positions	5	13	-61.5%
Increased positions	21	19	+10.5%
Reduced positions	22	21	+4.8%

13F shares	Current	Prev Q	Change
Total value	50.97M	49.03M	+4.0%
Total shares	9.8M	11.1M	-11.7%
Total puts	0	0	–
Total calls	0	0	–
Total put/call ratio	–	–	–

Largest owners	Shares	Value	Change
BLK BlackRock	1.75M	$3.28M	+0.6%
Renaissance Technologies	1.55M	$2.9M	+5.8%
California Public Employees Retirement System	1.3M	$2.44M	0.0%
NTRS Northern Trust	422.11K	$789K	-5.9%
STT State Street	419.3K	$784K	+18.8%
BK Bank Of New York Mellon	386.71K	$724K	-66.4%
Geode Capital Management	365.23K	$682K	+2.2%
Greenbrier Partners Capital Management	334.63K	$626K	-2.4%
Arrowstreet Capital, Limited Partnership	302.11K	$565K	-13.0%
Raymond James & Associates	274.05K	$512K	-14.4%

Largest transactions	Shares	Bought/sold	Change
BK Bank Of New York Mellon	386.71K	-763.21K	-66.4%
Zebra Capital Management	59.53K	-349.94K	-85.5%
Fondren Management	0	-275K	EXIT
JPM JPMorgan Chase & Co.	220.76K	-193.87K	-46.8%
Millennium Management	160.74K	+160.74K	NEW
Chicago Equity Partners	150.16K	-106.37K	-41.5%
GS Goldman Sachs	114K	+94.8K	+493.8%
Renaissance Technologies	1.55M	+85.56K	+5.8%
STT State Street	419.3K	+66.33K	+18.8%
Russell Investments	0	-61.14K	EXIT

Data from 13F filings. Stock values as filed, not updated for current price. Long positions only.

Financial report summary

Competition

Huntsman • Huntsman International • Huntsman • Huntsman • Tronox • Tronox • Tronox • Tronox • Chemours • Venator Materials

Risks

Our assets consist primarily of investments in our operating subsidiaries, and we are dependent upon distributions from our subsidiaries to service our liabilities.
Demand for, and prices of, certain of our Chemicals Segment’s products are influenced by changing market conditions for its products, which may result in reduced earnings or operating losses.
Higher costs or limited availability of our raw materials may reduce our earnings and decrease our liquidity. In addition, many of our raw material contracts contain fixed quantities we are required to purchase.
We could incur significant costs related to legal and environmental remediation matters.
Many of the markets in which our Component Products Segment operates are mature and highly competitive resulting in pricing pressure and the need to continuously reduce costs.
Our development of innovative features for current products is critical to sustaining and growing our Component Product Segment’s sales.
If our intellectual property were to be declared invalid, or copied by or become known to competitors, or if our competitors were to develop similar or superior intellectual property or technology, our ability to compete could be adversely impacted.
Our Real Estate Management and Development Segment owns a significant amount of real property in Henderson, Nevada. A prolonged downturn in the local real estate market in Nevada could negatively impact our ability to successfully complete the development of such real property.
Our leverage may impair our financial condition or limit our ability to operate our businesses.
Global climate change legislation could negatively impact our financial results or limit our ability to operate our businesses.
Technology failures or cyber security breaches could have a material adverse effect on our operations.

Management Discussion

We are primarily a holding company. We operate through our wholly-owned and majority-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International, Inc., Tremont LLC, Basic Management, Inc. (“BMI”) and the LandWell Company (“LandWell”). Kronos (NYSE: KRO), NL (NYSE: NL) and CompX (NYSE American: CIX) each file periodic reports with the SEC.
On January 26, 2018 we completed the sale of our Waste Management Segment to JFL-WCS Partners, LLC ("JFL Partners"), an entity sponsored by certain investment affiliates of J.F. Lehman & Company, for consideration consisting of the assumption of all of WCS' third-party indebtedness and other liabilities. Accordingly the results of operations of our Waste Management Segment is reflected as discontinued operations in our Consolidated Statements of Income for the years ended December 31, 2017 and 2018. We recognized a pre-tax gain of approximately $58 million on the transaction in the first quarter of 2018 because the carrying value of the liabilities of the business assumed by the purchaser exceeded the carrying value of the assets sold at the time of sale in large part due to a long-lived asset impairment of $170.6 million recognized with respect to the Waste Management Segment in the second quarter of 2017. Such pre-tax gain is classified as part of discontinued operations. Our Waste Management Segment, which operated in the low-level radioactive, hazardous, toxic and other waste disposal industry historically struggled to generate sufficient recurring disposal volumes to generate positive operating results or cash flows. The sale enabled us to focus more effort on continuing to develop our remaining segments which we believe have greater opportunity for higher returns. See Note 3 to our Consolidated Financial Statements.
We reported net income from continuing operations attributable to Valhi stockholders of $49.2 million or $.14 per diluted share in 2019 compared to $228.1 million or $.67 per diluted share in 2018.

Content analysis ?

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From filing 10-K 2019 FY