Valhi (VHI) Beneish M-Score: -2.39 (As of Jun. 25, 2026)

What is Valhi Beneish M-Score?

Valhi VHI -3.49% 65 Beneish M-Score is -2.39 as of Jun. 25, 2026. GuruFocus rates VHI with a GF Score™ of 65/100 and a GF Value™ of $17.13 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,529 Chemicals companies, Valhi ranks worse than 59.39% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.39 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Valhi's Beneish M-Score or its related term are showing as below:

VHI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.93 Med: -2.54 Max: -1.91
Current: -2.39

During the past 13 years, the highest Beneish M-Score of Valhi was -1.91. The lowest was -2.93. And the median was -2.54.

Valhi Beneish M-Score Related Terms

Valhi Beneish M-Score Historical Data

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The historical data trend for Valhi's Beneish M-Score 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.

Valhi Beneish M-Score Chart

Valhi Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.93

-2.62

-1.91

-2.83

-2.37

Valhi Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Beneish M-Score	Get a 7-Day Free Trial															-2.60	-2.59	-2.43	-2.37	-2.39

VHI vs ASIX, RYAM, ACNT: Beneish M-Score Comparison

For the Chemicals subindustry, Valhi's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Valhi's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Valhi's Beneish M-Score falls into.

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65GF Score

Valhi Inc VHI

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Valhi Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Valhi for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0744

0.528 * 1.6585

0.404 * 1.0653

0.892 * 0.9932

0.115 * 1.0281

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1778

4.679 * -0.06636

0.327 * 1.0118

-2.39

This Year (Mar26) TTM:

Last Year (Mar25) TTM:

Total Receivables was $415 Mil.
Revenue was 560.1 + 494.5 + 503.5 + 540.4 = $2,099 Mil.
Gross Profit was 103 + 34.2 + 60.6 + 78.1 = $276 Mil.
Total Current Assets was $1,254 Mil.
Total Assets was $2,610 Mil.
Property, Plant and Equipment(Net PPE) was $759 Mil.
Depreciation, Depletion and Amortization(DDA) was $68 Mil.
Selling, General, & Admin. Expense(SGA) was $311 Mil.
Total Current Liabilities was $386 Mil.
Long-Term Debt & Capital Lease Obligation was $640 Mil.
Net Income was 2 + -53.2 + -22.2 + 0.9 = $-73 Mil.
Non Operating Income was -0.4 + -27.9 + 24.3 + 30.4 = $26 Mil.
Cash Flow from Operations was -46.1 + 100.6 + -1.9 + 21.7 = $74 Mil.

Total Receivables was $389 Mil.
Revenue was 538.6 + 480.9 + 533.6 + 559.7 = $2,113 Mil.
Gross Profit was 122.5 + 100.6 + 116.3 + 121.3 = $461 Mil.
Total Current Assets was $1,410 Mil.
Total Assets was $2,757 Mil.
Property, Plant and Equipment(Net PPE) was $755 Mil.
Depreciation, Depletion and Amortization(DDA) was $70 Mil.
Selling, General, & Admin. Expense(SGA) was $266 Mil.
Total Current Liabilities was $529 Mil.
Long-Term Debt & Capital Lease Obligation was $543 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(414.8 / 2098.5)	/	(388.7 / 2112.8)
	=	0.197665	/	0.183974
	=	1.0744

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(460.7 / 2112.8)	/	(275.9 / 2098.5)
	=	0.218052	/	0.131475
	=	1.6585

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1253.6 + 759) / 2610)	/	(1 - (1410 + 754.8) / 2757.2)
	=	0.228889	/	0.214856
	=	1.0653

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2098.5	/	2112.8
	=	0.9932

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(69.6 / (69.6 + 754.8))	/	(67.9 / (67.9 + 759))
	=	0.084425	/	0.082114
	=	1.0281

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(311.3 / 2098.5)	/	(266.1 / 2112.8)
	=	0.148344	/	0.125947
	=	1.1778

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((640.3 + 386) / 2610)	/	((542.9 + 528.6) / 2757.2)
	=	0.393218	/	0.388619
	=	1.0118

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-72.5 - 26.4	-	74.3)	/	2610
	=	-0.06636

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Valhi has a M-score of -2.39 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -2.39 mean?

Valhi (VHI) has a Beneish M-Score of -2.39 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Valhi and its competitors. According to the industry distribution chart, Valhi ranks #908 out of 1529 companies in the Chemicals industry, placing it in the top 59.4%.

Is Valhi's Beneish M-Score too high?

Valhi's current Beneish M-Score is -2.39. Based on the distribution chart, Valhi ranks #908 out of 1529 companies in the Chemicals industry, which is below the industry midpoint. Overall, Valhi has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Valhi's Beneish M-Score compare to ASIX and RYAM?

According to the Chemicals industry distribution chart, Valhi ranks #908 out of 1529 companies for Beneish M-Score. This places Valhi in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a Chemicals company?

A good Beneish M-Score depends on the Chemicals industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Valhi and its competitors. Valhi's current Beneish M-Score is -2.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Valhi stock overvalued right now?

Based on GuruFocus' analysis, Valhi (VHI) is currently considered Modestly Undervalued. The stock's GF Value™ is $17.13, compared to a current price of $13.00 — trading 24.1% below its estimated fair value. The current Beneish M-Score is -2.39. Valhi's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Valhi (VHI), the current Beneish M-Score is -2.39 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Valhi (VHI) Overvalued in 2026?

Based on GuruFocus' analysis, Valhi stock appears to be undervalued. The current stock price of $13.00 is trading 24.1% below its estimated GF Value™ of $17.13. GuruFocus considers Valhi to be Modestly Undervalued.

Key valuation signals for VHI:

Beneish M-Score: -2.39
GF Value™: $17.13 vs. price of $13.00 (24.1% below fair value)
GF Score™: 65/100 with 3 warning signs

No single metric tells the full story. See the VHI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Valhi Business Description

Industry Basic Materials Chemicals

Comparable Companies ASIX RYAM ACNT BLGO ORGN GURE WLKP LXU ASPI GPRE TSE:4063 XTER:BAS SAU:2010 SHSE:600989 DOW TSE:4004 SZSE:002460 XKRX:051910 SZSE:000408 SHSE:600346

Address 5430 LBJ Freeway, Suite 1700, Dallas, TX, USA, 75240-2620

Website https://www.valhi.net

Valhi Inc is a holding company that provides chemicals, security products, waste management systems, and real estate development and management services through its subsidiaries. It operates its business in three segments, which are Chemicals, Component Products, and Real Estate Management and Development. The company derives maximum revenue from the Chemicals segment, which produces and markets value-added titanium dioxide pigments (TiO2). TiO2 is used to impart whiteness, brightness, opacity, and durability to various products, including paints, plastics, paper, fibers, and ceramics. Geographically, the company generates maximum revenue from the United States and also has a presence in Germany, Canada, Norway, and Belgium.

65GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$13.00

Price

$17.13

GF Value

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