JAMES HARDIE IND PLC-SP ADR (JHX) Stock Fundamental Analysis
NYSE:JHX - New York Stock Exchange, Inc. - US47030M1062 - ADR - Currency: USD
JHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Construction Materials industry. Both the health and profitability get an excellent rating, making JHX a very profitable company, without any liquidiy or solvency issues. JHX has a decent growth rate and is not valued too expensively. This makes JHX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year JHX was profitable.
In the past year JHX had a positive cash flow from operations.
In the past 5 years JHX has always been profitable.
Each year in the past 5 years JHX had a positive operating cash flow.
1.2 Ratios
JHX has a Return On Assets (8.11%) which is comparable to the rest of the industry.
JHX has a Return On Equity of 19.62%. This is in the better half of the industry: JHX outperforms 75.00% of its industry peers.
JHX's Return On Invested Capital of 12.97% is amongst the best of the industry. JHX outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JHX is above the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 19.62% | ||
| ROIC | 12.97% |
ROA(3y)9.97%
ROA(5y)9.43%
ROE(3y)26.28%
ROE(5y)27.61%
ROIC(3y)13.97%
ROIC(5y)14.14%
1.3 Margins
JHX has a Profit Margin (10.93%) which is comparable to the rest of the industry.
JHX's Profit Margin has improved in the last couple of years.
JHX has a Operating Margin of 22.19%. This is in the better half of the industry: JHX outperforms 75.00% of its industry peers.
JHX's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 38.81%, JHX belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
JHX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.19% | ||
| PM (TTM) | 10.93% | ||
| GM | 38.81% |
OM growth 3Y-0.52%
OM growth 5Y3.46%
PM growth 3Y-4.87%
PM growth 5Y3.37%
GM growth 3Y2.21%
GM growth 5Y1.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so JHX is creating value.
Compared to 1 year ago, JHX has less shares outstanding
Compared to 5 years ago, JHX has less shares outstanding
The debt/assets ratio for JHX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.22 indicates that JHX is not in any danger for bankruptcy at the moment.
JHX has a better Altman-Z score (4.22) than 75.00% of its industry peers.
JHX has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as JHX would need 2.95 years to pay back of all of its debts.
The Debt to FCF ratio of JHX (2.95) is better than 91.67% of its industry peers.
JHX has a Debt/Equity ratio of 0.51. This is a neutral value indicating JHX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, JHX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 4.22 |
ROIC/WACC1.76
WACC7.35%
2.3 Liquidity
A Current Ratio of 2.10 indicates that JHX has no problem at all paying its short term obligations.
JHX has a Current ratio (2.10) which is in line with its industry peers.
A Quick Ratio of 1.67 indicates that JHX should not have too much problems paying its short term obligations.
JHX has a better Quick ratio (1.67) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for JHX have decreased by -7.45% in the last year.
JHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.73% yearly.
The Revenue has decreased by -1.49% in the past year.
The Revenue has been growing by 8.27% on average over the past years. This is quite good.
EPS 1Y (TTM)-7.45%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-10%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-3.32%
3.2 Future
Based on estimates for the next years, JHX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.48% on average per year.
The Revenue is expected to grow by 15.32% on average over the next years. This is quite good.
EPS Next Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y10.76%
EPS Next 5Y15.48%
Revenue Next Year10.68%
Revenue Next 2Y12.16%
Revenue Next 3Y11.95%
Revenue Next 5Y15.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.31 indicates a rather expensive valuation of JHX.
75.00% of the companies in the same industry are more expensive than JHX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.59, JHX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.22, the valuation of JHX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, JHX is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, JHX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 17.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, JHX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.81 | ||
| EV/EBITDA | 11.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JHX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)2.99
PEG (5Y)1.33
EPS Next 2Y11.95%
EPS Next 3Y10.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, JHX has a reasonable but not impressive dividend return.
JHX's Dividend Yield is rather good when compared to the industry average which is at 5.39. JHX pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, JHX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
JHX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y11.95%
EPS Next 3Y10.76%
27.28
+0.34 (+1.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.39%
Inst Owner Change318.32%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap11.73B
Analysts73.75
Price Target29.35 (7.59%)
Short Float %5.74%
Short Ratio6.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.12%
Min EPS beat(2)-2.01%
Max EPS beat(2)2.25%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-2.01%
Max EPS beat(4)6.34%
EPS beat(8)5
Avg EPS beat(8)2.59%
EPS beat(12)6
Avg EPS beat(12)-0.6%
EPS beat(16)7
Avg EPS beat(16)-1.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)-1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)-1.34%
Revenue beat(16)8
Avg Revenue beat(16)-0.53%
PT rev (1m)-7.12%
PT rev (3m)-17.02%
EPS NQ rev (1m)-4.82%
EPS NQ rev (3m)-8.98%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 17.22 | ||
| P/S | 3.02 | ||
| P/FCF | 30.81 | ||
| P/OCF | 14.61 | ||
| P/B | 5.43 | ||
| P/tB | 6.44 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)1.49
EY5.46%
EPS(NY)1.58
Fwd EY5.81%
FCF(TTM)0.89
FCFY3.25%
OCF(TTM)1.87
OCFY6.85%
SpS9.02
BVpS5.03
TBVpS4.24
PEG (NY)2.99
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 19.62% | ||
| ROCE | 19.47% | ||
| ROIC | 12.97% | ||
| ROICexc | 14.87% | ||
| ROICexgc | 16.3% | ||
| OM | 22.19% | ||
| PM (TTM) | 10.93% | ||
| GM | 38.81% | ||
| FCFM | 9.82% |
ROA(3y)9.97%
ROA(5y)9.43%
ROE(3y)26.28%
ROE(5y)27.61%
ROIC(3y)13.97%
ROIC(5y)14.14%
ROICexc(3y)15.23%
ROICexc(5y)15.2%
ROICexgc(3y)16.77%
ROICexgc(5y)16.93%
ROCE(3y)20.96%
ROCE(5y)21.22%
ROICexcg growth 3Y-3.58%
ROICexcg growth 5Y8.58%
ROICexc growth 3Y-2.86%
ROICexc growth 5Y9.05%
OM growth 3Y-0.52%
OM growth 5Y3.46%
PM growth 3Y-4.87%
PM growth 5Y3.37%
GM growth 3Y2.21%
GM growth 5Y1.56%
F-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 195.28% | ||
| Cap/Sales | 10.89% | ||
| Interest Coverage | 13.53 | ||
| Cash Conversion | 74.58% | ||
| Profit Quality | 89.76% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 4.22 |
F-Score6
WACC7.35%
ROIC/WACC1.76
Cap/Depr(3y)260.24%
Cap/Depr(5y)204.41%
Cap/Sales(3y)12.65%
Cap/Sales(5y)9.78%
Profit Quality(3y)61.36%
Profit Quality(5y)110.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.45%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-10%
EPS Next Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y10.76%
EPS Next 5Y15.48%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-3.32%
Revenue Next Year10.68%
Revenue Next 2Y12.16%
Revenue Next 3Y11.95%
Revenue Next 5Y15.32%
EBIT growth 1Y-8.4%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year36.44%
EBIT Next 3Y23.39%
EBIT Next 5Y24.62%
FCF growth 1Y-18.13%
FCF growth 3Y-8.66%
FCF growth 5Y8.14%
OCF growth 1Y-12.19%
OCF growth 3Y1.97%
OCF growth 5Y12.21%