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ValhiVHI +0.44%67 3-Year ROIIC % is -162.93 as of Dec. 2025. GuruFocus rates VHI with a GF Score™ of 67/100 and a GF Value™ of $17.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,522 Chemicals companies, Valhi ranks worse than 95.4% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Valhi's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -162.93%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Valhi's 3-Year ROIIC % or its related term are showing as below:
VHI's 3-Year ROIIC % is ranked worse than 95.4% of 1522
companies
in the Chemicals industry
Industry Median: 0.02
vs VHI: -162.93
Valhi (NYSE:VHI) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Valhi 3-Year ROIIC % Related Terms
Valhi 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Valhi's 3-Year ROIIC % 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.
VHI vs ASPI, RYAM, ASIX: 3-Year ROIIC % Comparison
For the Chemicals subindustry, Valhi's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Valhi's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Valhi's 3-Year ROIIC % falls into.
Valhi's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -16.9 (Dec. 2025) - 146.02576 (Dec. 2022) )
/
( 2043.8 (Dec. 2025) - 1943.8 (Dec. 2022) )
=
-162.92576
/
100
=
-162.93%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Valhi (VHI) has a 3-Year ROIIC % of -162.93 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Valhi and its competitors. According to the industry distribution chart, Valhi ranks #1452 out of 1522 companies in the Chemicals industry, placing it in the top 95.4%.
Is Valhi's 3-Year ROIIC % too high?
Valhi's current 3-Year ROIIC % is -162.93. Based on the distribution chart, Valhi ranks #1452 out of 1522 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Valhi has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Valhi's 3-Year ROIIC % compare to ASPI and RYAM?
According to the Chemicals industry distribution chart, Valhi ranks #1452 out of 1522 companies for 3-Year ROIIC %. This places Valhi in the lower half of its industry. The industry median 3-Year ROIIC % is 0.02. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Chemicals company?
The median 3-Year ROIIC % among Chemicals companies is 0.02, based on 1,522 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Valhi and its competitors. For the Chemicals industry, the median 3-Year ROIIC % is 0.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valhi's current 3-Year ROIIC % is -162.93. 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 $17.64, compared to a current price of $13.81 — trading 21.7% below its estimated fair value. The current 3-Year ROIIC % is -162.93. Valhi's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Valhi (VHI), the current 3-Year ROIIC % is -162.93 as of Dec. 2025. 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 $13.81 is trading 21.7% below its estimated GF Value™ of $17.64.
GuruFocus considers Valhi to be Modestly Undervalued.
Key valuation signals for VHI:
3-Year ROIIC %: -162.93
GF Value™: $17.64 vs. price of $13.81 (21.7% below fair value)
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 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.
67GF Score
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