VHINot HalalF
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Compliance Status

Not Halal

Screened on Oct 15, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Valhi, Inc. (VHI) halal? Not Halal. Based on AAOIFI screening, Valhi, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

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HalalScreener rates Valhi, Inc. (VHI) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 15, 2026. Source: https://halalscreener.app/en/stock/VHI

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

144.9% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding VHI

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

Valhi, Inc.

VHI: Is Valhi, Inc. Halal?

Valhi, Inc.

NYSEBasic MaterialsUS

$14.68

Market Cap: 415.8M

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About Valhi, Inc.

Valhi, Inc. is a diversified enterprise operating in three core sectors: chemicals, component manufacturing, and property management and development. Its global reach encompasses the Asia Pacific region, Europe, and North America. The chemicals division specializes in the production and global distribution of titanium dioxide (TiO2) pigments. These white inorganic pigments are critical raw materials for industries manufacturing paints, plastics, decorative laminates, and paper products, marketed under the KRONOS brand through a network of agents and distributors. In its component products segment, Valhi manufactures various mechanical and electrical locking devices, including cabinet locks and other security mechanisms. These are vital for applications such as vehicle ignition systems, postal boxes, office furniture (e.g., file cabinets, desk drawers), tool storage, vending and cash containment machines, advanced inventory and access control systems (like secure narcotics boxes), medical cabinetry, electronic circuit panels, general storage, and gas station security. This segment also produces specialized stainless steel marine components, such as exhaust systems, gauges, throttle controls, wake enhancement devices, trim tabs, and associated hardware, primarily for high-performance and ski/wakeboard boats. Valhi's real estate management and development segment provides utility services to industrial and municipal customers. It also maintains a portfolio of owned real properties and undertakes land development for commercial, industrial, and residential purposes. Additionally, this segment manages marketable securities and other financial investments. Established in 1932 and headquartered in Dallas, Texas, Valhi, Inc. operates as a subsidiary of Contran Corporation.

Sector: Basic Materials · Industry: Chemicals

Why this does not pass

  • Interest-bearing debt is 144.9% of market cap, over the 30% AAOIFI limit.
  • Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 15, 2026

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The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Basic Materials

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is Valhi, Inc. (VHI) halal to invest in?
Valhi, Inc. (VHI) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Valhi, Inc. get a F compliance rating?
Valhi, Inc. (VHI) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 144.9% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Valhi, Inc.'s Shariah verdict?
Valhi, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Valhi, Inc. re-screened for Shariah compliance?
Valhi, Inc. (VHI) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 15, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.