Valhi Inc. (VHI) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, VHI scores 28 out of 100 and carries a letter grade of E, labeled "Roarable Strong Sell — Forensic Risk / Avoid." The five pillars are:

• Fundamental Cash Engine (9 / 20): Per the Roarable RQD rating, ROIC is 6.2% and FCF yield is -20.72%. Negative free-cash-flow yield means the company is consuming cash relative to its market value, a weak foundation for the upside drivers an investor typically looks for.
• Whale 13F Flow (5 / 20): Per the Roarable RQD rating, institutional accumulation and options positioning score low. Limited institutional support removes a potential source of price confirmation.
• Insider Conviction (3 / 20): Per the Roarable RQD rating, SEC Form 4 and Congressional PTR cluster flow scores very low, indicating no visible insider-buying signal to offset fundamental weakness.
• Macro Regime Fit (3 / 20): Per the Roarable RQD rating, beta is 1.0 with a sector sensitivity score of 3 / 20, implying market-level volatility without a clear regime tailwind.
• Forensic Balance Sheet (8 / 20): Per the Roarable RQD rating, Altman Z is 2.5, Piotroski F is 2/9, and Debt/Equity is 0.5. These readings point to a balance sheet that the rating treats as a risk factor rather than a cushion.

Taken together, the rating frames VHI as a name where valuation tradeoffs are unfavorable: the stock may look inexpensive on a price basis, but the cash-generation and forensic signals weigh against that appearance. Investors weighing the stock today would be evaluating whether the upside drivers justify accepting the forensic and cash-flow risks flagged across these pillars.

Valhi Inc. is a NYSE-listed issuer classified in the Materials sector and Major Chemicals industry, per the profile section. The source data does not describe its products, customers, or revenue model. The gross margin of 14.2% and operating margin of 3% per the market data indicate a thin-margin operating profile. The market capitalization is $0.4B per the profile.

Per the SEC financials, revenue was broadly stable across the three periods while net income swung from $-9.9M to $108.0M and back to $-57.6M in FY 2025. Per the market data, net margin is -2.8% and ROIC is 6.2%. Per the Roarable RQD rating, the Altman Z-Score is 2.5 and the Piotroski F-Score is 2/9, and Debt/Equity is 0.5. Cash declined from $348.3M to $214.0M between FY 2024 and FY 2025 per the SEC financials.

Per the recent news section, the headlines are dominated by the announcement of the expected third-quarter 2026 earnings release date, which appears in two separate wire items. Additional items reference a TradingView Q3'26 EPS estimate of 0.85 USD, a MarketBeat report that the stock price broke below its 200-day moving average, a seasonal returns chart, and a Stock Traders Daily piece on price-sensitive allocations. Every news item carries a YELLOW light and MARKET WIRE impact label. Per the Butterfly Supply-Chain Graph, the sector is Materials, the industry is Major Chemicals, the supply chain is listed as NONE, and there are no butterfly links or proprietary signals.

• What are the company's principal products, customers, and geographic exposures, given that the source data provides only sector and industry classification?
• Why is the FCF yield at -20.72% and what drove the swing in FY 2025 net income to $-57.6M from $108.0M in FY 2024?
• What are the reported EPS, debt, and cash balances for FY 2023 and FY 2025, which are marked N/A or unavailable in the source data?
• What do the forward earnings expectations look like for the Q3 2026 release, given only a single EPS estimate of 0.85 USD appears in the news wire?
• What drove the decline in cash from $348.3M to $214.0M between FY 2024 and FY 2025, and how does that affect the balance sheet posture behind the Piotroski F-Score of 2/9?