Valhi (VHI) Stock Forecast & Price Target

Valhi Inc. is positioned for significant financial growth, as indicated by projections showing its EBITDA increasing at a 37% compound annual growth rate (CAGR), rising from $25 million in FY25 to $47 million in FY27, along with expanding margins from 24.2% to 30.1%. Additionally, the expected increase in earnings per share (EPS) by 23% over the next 12 months outpaces peers within the Canadian software consolidator sector, demonstrating strong relative performance. The company's diverse operations, particularly in the Chemicals segment which dominates revenue generation, support a robust outlook for long-term profitability and financial stability.

Valhi Inc. faces significant challenges due to a drastic decline in Attend Anywhere's revenue, which has fallen 57% over a two-year period to £5.0 million for the fiscal year ending March 2025, primarily attributed to pricing pressures and increased competition. Additionally, the ongoing difficulties in NHS productivity, which remains 11% below pre-pandemic levels, contribute further to concerns regarding revenue stability and growth potential. With an expected drop in EBITDA margin from 26.4% in Q2 FY25 to 21.5% in Q3 FY25, followed by a projected return to 25%, the financial outlook appears unfavorable amid these compounding pressures.