Valhi, Inc.
In the quarter to June 2026, revenue grew 9.82%, EPS grew 2,500.0%, free cash flow grew 435.2% and total debt fell 7.26%, each against the same quarter a year earlier. Dividend growth for five consecutive years.
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Valhi, Inc. (VHI) Beneish M-score
Valhi, Inc.'s Beneish M-score for fiscal 2025 is −2.36; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −2.36 | 0.17 |
| FY2024 | −2.53 | (0.59) |
| FY2023 | −1.93 | 0.61 |
| FY2022 | −2.54 | 0.25 |
| FY2021 | −2.79 | (0.27) |
| FY2020 | −2.52 | (0.16) |
| FY2019 | −2.36 | 0.15 |
| FY2018 | −2.52 | (0.42) |
| FY2017 | −2.09 | 0.52 |
| FY2016 | −2.61 | 0.29 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.99 | — | 0.91 | |
| Gross margin index | 1.35 | — | 0.71 | |
| Asset quality index | 1.06 | — | 0.43 | |
| Sales growth index | 0.99 | — | 0.88 | |
| Depreciation index | 1.04 | — | 0.12 | |
| SG&A index | 1.24 | — | −0.21 | |
| Total accruals to total assets | (0.01) | — | −0.03 | |
| Leverage index | 0.98 | — | −0.32 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −2.36 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| RYAM Rayonier Advanced Materials Inc. compare | −3.9× |
| GPRE Green Plains, Inc. compare | −3.5× |
| ASIX AdvanSix compare | −2.6× |
| WLKP Westlake Chemical Partners LP compare | −2.5× |
| TROX Tronox Holdings PLC compare | −2.4× |
| VHI Valhi, Inc. | −2.4× |
| LXU Lsb Industries Inc. compare | −2.3× |
| BAK Braskem S.A. compare | −1.5× |
| ASPI ASP Isotopes Inc. compare | 11.9× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI