Is VALHI INC /DE/ (VHI) Halal?

NYSE Basic Materials United States $398M
✗ NOT HALAL
Confidence: 90/100
VALHI INC /DE/ (VHI) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 153.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. VALHI INC /DE/ operates in the Basic Materials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 153.2%
/ 30%
91.9%
/ 30%
86.0%
/ 30%
1.04%
/ 5%
✗ NOT HALAL
DJIM 153.2%
/ 33%
91.9%
/ 33%
86.0%
/ 33%
1.04%
/ 5%
✗ NOT HALAL
MSCI 20.9%
/ 33%
12.5%
/ 33%
11.7%
/ 33%
1.04%
/ 5%
✓ HALAL
S&P 153.2%
/ 33%
91.9%
/ 33%
86.0%
/ 33%
1.04%
/ 5%
✗ NOT HALAL
FTSE 20.9%
/ 33%
12.5%
/ 33%
11.7%
/ 50%
1.04%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-2.02
Dividend Yield
227.0%
Payout: 49.2%
P/B Ratio
0.4
EV/EBITDA
18.4
EV: $1.1B
Revenue
$2.1B
Growth: 2.8%
Beta
1.2
Average volatility
Current Ratio
2.8

Profitability

Gross Margin 14.4%
Operating Margin -12.7%
Net Margin -2.8%
Return on Equity (ROE) -4.0%
Return on Assets (ROA) -0.1%

Cash Flow & Balance Sheet

Operating Cash Flow$44M
Free Cash Flow$13M
Total Debt$584M
Debt-to-Equity44.8
Current Ratio2.8
Total Assets$2.8B

Price & Trading

Last Close$14.24
50-Day MA$14.30
200-Day MA$14.83
Avg Volume25K
Beta1.2
52-Week Range
$11.44
$20.00

About VALHI INC /DE/ (VHI)

CEO
Mr. Michael S. Simmons
Employees
2,826
Sector
Basic Materials
Industry
Chemicals
Country
United States
Exchange
NYSE
Market Cap
$398M
Currency
USD

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, paper, fibers and ceramics, decorative laminate, and paper manufacturers. This segment also provides TiO2 under the KRONOS name through agents and distributors. The Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in mailboxes, ignition systems, file cabinets, desk drawers, tool storage cabinets, medical cabinetry security, integrated inventory and access control secured narcotics boxes, electronic circuit panels, storage compartments, gas station security, and vending and cash containment machine applications. This segment also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The Real Estate Management and Development segment offers utility services to industrial customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. This segment also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.

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Frequently Asked Questions

Is VALHI INC /DE/ (VHI) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), VALHI INC /DE/ is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is VALHI INC /DE/'s debt ratio?

VALHI INC /DE/'s debt ratio is 153.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 20.9%.

What are VALHI INC /DE/'s key financial metrics?

VALHI INC /DE/ has a market capitalization of $398M, and revenue of $2.1B. The company maintains a gross margin of 14.4% and a net margin of -2.8%. Return on equity stands at -4.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.