Valhi (VHI) Stock Forecast & Price Target

Valhi Inc is positioned for significant financial growth, with projected EBITDA expected to rise at a 37% CAGR, increasing from $25 million in fiscal year 2025 to $47 million by fiscal year 2027, alongside an expansion in EBITDA margins from 24.2% to 30.1%. Furthermore, the company anticipates a robust 23% increase in earnings per share over the next 12 months, substantially outpacing the growth rates of its Canadian software consolidator peers, which are forecasted at 12% and 13%. This positive outlook is further bolstered by increasing operational efficiencies and strong market demand in the Chemicals segment, particularly for titanium dioxide products.

The financial outlook for Valhi Inc. appears negative due to a significant decline in revenue from its Attend Anywhere platform, which has experienced a 57% drop over the past two years, culminating in a revenue of only £5.0 million in FY25. This decline can be attributed to pricing pressures stemming from the NHS's transition to usage-based pricing and intensified competition from platforms like Microsoft Teams, compounded by a broader decrease in NHS productivity, which remains 11% below pre-pandemic levels. Additionally, while projections suggest a recovery in EBITDA margins from 21.5% back to 25% within the next year, the anticipated drop from 26.4% to 21.5% in the near term raises further concerns regarding the company’s profitability trajectory.