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Valhi (VHI) Gross Margin %

: 14.35% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Valhi's Gross Profit for the three months ended in Dec. 2023 was $65 Mil. Valhi's Revenue for the three months ended in Dec. 2023 was $453 Mil. Therefore, Valhi's Gross Margin % for the quarter that ended in Dec. 2023 was 14.35%.

Warning Sign:

Valhi Inc gross margin has been in long-term decline. The average rate of decline per year is -12.8%.


The historical rank and industry rank for Valhi's Gross Margin % or its related term are showing as below:

VHI' s Gross Margin % Range Over the Past 10 Years
Min: 12.76   Med: 22.18   Max: 33.47
Current: 12.76


During the past 13 years, the highest Gross Margin % of Valhi was 33.47%. The lowest was 12.76%. And the median was 22.18%.

VHI's Gross Margin % is ranked worse than
77.07% of 1509 companies
in the Chemicals industry
Industry Median: 22.35 vs VHI: 12.76

Valhi had a gross margin of 14.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Valhi was -12.80% per year.


Valhi Gross Margin % Historical Data

The historical data trend for Valhi's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Valhi Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.90 22.28 25.27 22.07 12.76

Valhi Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.07 10.98 12.92 12.92 14.35

Competitive Comparison

For the Chemicals subindustry, Valhi's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Valhi Gross Margin % Distribution

For the Chemicals industry and Basic Materials sector, Valhi's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Valhi's Gross Margin % falls into.



Valhi Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Valhi's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=245.2 / 1921.7
=(Revenue - Cost of Goods Sold) / Revenue
=(1921.7 - 1676.5) / 1921.7
=12.76 %

Valhi's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=65 / 453
=(Revenue - Cost of Goods Sold) / Revenue
=(453 - 388) / 453
=14.35 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Valhi  (NYSE:VHI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Valhi had a gross margin of 14.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Valhi Gross Margin % Related Terms

Thank you for viewing the detailed overview of Valhi's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Valhi (VHI) Business Description

Traded in Other Exchanges
N/A
Address
5430 LBJ Freeway, Suite 1700, Dallas, TX, USA, 75240-2620
Valhi Inc is a holding company that provides chemicals, security products, waste management systems, and real estate development and management through its subsidiaries. It operates its business in three segments, which are Chemicals, Component Products, and Real Estate Management and Development. Through its segments the company produces and markets titanium dioxide pigments which generate the majority of the company revenues; manufactures security products; processes, treats, stores, and disposes of radioactive and toxic waste; and provides real estate management services. Valhi derives maximum revenue from the Chemicals segment. The company has a presence in Europe, North America, Asia Pacific, and the Rest of the World.
Executives
Gina A. Norris director 1329 MILLWOOD ROAD, MCKINNEY TX 75069
Amy A. Samford officer: Vice President and Controller 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Kevin B Kramer director C/O STONERIGDGE INC., 9400 E. MARKET ST, WARREN OH 44484
Bart W Reichert officer: Vice President, Internal Audit 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Patty S. Brinda officer: Vice President and Controller 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Robert D Graham director, officer: Executive VP and CLO 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Bryan A. Hanley officer: Vice President and Treasurer 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Darci B Scott officer: VP, Tax - Financial Reporting 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Kristin B Mccoy officer: Vice President, Tax 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Michael Shawn Simmons officer: VP & Chief Accounting Officer 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
Jane Rast Grimm officer: VP and Assistant Secretary 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Valhi Inc /de/ 10 percent owner THREE LINCOLN CENTER, 5430 LBJ FREEWAY SUITE 1700, DALLAS TX 75240-2620
Dixie Rice Agricultural L.l.c. 10 percent owner 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240
Terri Herrington director C/O CONTRAN CORPORATION, 5430 LBJ FREEWAY, SUITE 1700, DALLAS TX 75240-2620
W Hayden Mcilroy director 25 HIGHLAND PARK VILLAGE, STE. 100-341, DALLAS TX 75205

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