Valhi (NYSE:VHI) Releases Earnings Results

Key Points

• Valhi reported mixed quarterly results: earnings per share came in at $0.78, below the $0.96 consensus estimate, while revenue of $606.1 million exceeded expectations of $559.69 million. The company posted a negative net margin of 3.45% and negative return on equity of 4.29%.
• Valhi announced a quarterly dividend of $0.08 per share, or $0.32 annualized, representing a 2.1% yield. The dividend is payable September 24 to shareholders of record as of September 3.
• Shares traded at $15.51 after declining $0.49, and the stock retains a consensus “Sell” rating from analysts. Institutional investors own only 3.83% of the company.

Valhi (NYSE:VHI - Get Free Report) posted its earnings results on Thursday. The basic materials company reported $0.78 EPS for the quarter, missing analysts' consensus estimates of $0.96 by ($0.18), FiscalAI reports. Valhi had a negative return on equity of 4.29% and a negative net margin of 3.45%.The business had revenue of $606.10 million during the quarter, compared to the consensus estimate of $559.69 million.

Valhi Stock Performance

VHI traded down $0.49 during mid-day trading on Friday, reaching $15.51. 33,820 shares of the company traded hands, compared to its average volume of 17,399. The stock has a market capitalization of $438.93 million, a P/E ratio of -6.11 and a beta of 0.97. The company has a quick ratio of 1.74, a current ratio of 3.25 and a debt-to-equity ratio of 0.46. The company's fifty day moving average price is $14.02 and its 200-day moving average price is $14.12. Valhi has a 52-week low of $11.44 and a 52-week high of $17.67.

Valhi Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be given a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, September 3rd. Valhi's payout ratio is -12.60%.

Institutional Trading of Valhi

Several large investors have recently modified their holdings of the company. Millennium Management LLC bought a new position in shares of Valhi during the 4th quarter valued at approximately $201,000. Jane Street Group LLC bought a new stake in Valhi during the 4th quarter worth approximately $183,000. Los Angeles Capital Management LLC bought a new stake in Valhi during the 4th quarter worth approximately $80,000. Deutsche Bank AG lifted its holdings in Valhi by 145.0% during the fourth quarter. Deutsche Bank AG now owns 7,006 shares of the basic materials company's stock valued at $84,000 after purchasing an additional 4,146 shares in the last quarter. Finally, Rhumbline Advisers lifted its holdings in Valhi by 79.9% during the third quarter. Rhumbline Advisers now owns 7,520 shares of the basic materials company's stock valued at $119,000 after purchasing an additional 3,341 shares in the last quarter. Institutional investors own 3.83% of the company's stock.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Valhi in a research report on Wednesday, July 8th. One research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Valhi currently has a consensus rating of "Sell".

Valhi Company Profile

Valhi, Inc is a diversified holding company incorporated in Delaware in 1987 and headquartered in Dallas, Texas. Through its three wholly owned subsidiaries—Kronos Worldwide, CompX International and NL Industries—Valhi participates in the manufacture and distribution of chemical and security products for industrial, commercial and consumer markets.

Kronos Worldwide is a leading independent producer of titanium dioxide pigment, a white powder that enhances brightness and opacity in paints, coatings, plastics, paper and other applications.

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