JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - NYSE:JHX - US47030M1062 - Common Stock
22.34 USD
+0.34 (+1.55%)
22.42 USD
+0.08 (+0.36%)
We assign a fundamental rating of 6 out of 10 to JHX. JHX was compared to 13 industry peers in the Construction Materials industry. JHX gets an excellent profitability rating and is at the same time showing great financial health properties. JHX has a correct valuation and a medium growth rate. These ratings would make JHX suitable for quality investing!
1. Profitability
1.1 Basic Checks
JHX had positive earnings in the past year.
In the past year JHX had a positive cash flow from operations.
In the past 5 years JHX has always been profitable.
In the past 5 years JHX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.88%, JHX is doing worse than 69.23% of the companies in the same industry.
With a decent Return On Equity value of 14.68%, JHX is doing good in the industry, outperforming 61.54% of the companies in the same industry.
JHX has a better Return On Invested Capital (8.90%) than 69.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JHX is above the industry average of 10.33%.
The last Return On Invested Capital (8.90%) for JHX is well below the 3 year average (13.97%), which needs to be investigated, but indicates that JHX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 14.68% | ||
| ROIC | 8.9% |
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 of 8.75%. This is in the lower half of the industry: JHX underperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of JHX has grown nicely.
With a decent Operating Margin value of 20.97%, JHX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of JHX has grown nicely.
JHX's Gross Margin of 38.17% is amongst the best of the industry. JHX outperforms 92.31% of its industry peers.
In the last couple of years the Gross Margin of JHX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.97% | ||
| PM (TTM) | 8.75% | ||
| GM | 38.17% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JHX is creating value.
Compared to 1 year ago, JHX has less shares outstanding
The number of shares outstanding for JHX has been reduced compared to 5 years ago.
JHX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.98 indicates that JHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
JHX has a Altman-Z score of 2.98. This is comparable to the rest of the industry: JHX outperforms 53.85% of its industry peers.
JHX has a debt to FCF ratio of 5.89. This is a neutral value as JHX would need 5.89 years to pay back of all of its debts.
The Debt to FCF ratio of JHX (5.89) is better than 69.23% of its industry peers.
JHX has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
JHX has a Debt to Equity ratio of 1.12. This is amonst the worse of the industry: JHX underperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.98 |
ROIC/WACC1.24
WACC7.19%
2.3 Liquidity
JHX has a Current Ratio of 3.76. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
JHX has a better Current ratio (3.76) than 92.31% of its industry peers.
JHX has a Quick Ratio of 3.31. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
JHX has a Quick ratio of 3.31. This is amongst the best in the industry. JHX outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
The earnings per share for JHX have decreased strongly by -15.95% 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.
JHX shows a decrease in Revenue. In the last year, the revenue decreased by -4.74%.
JHX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.27% yearly.
EPS 1Y (TTM)-15.95%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-29.27%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
3.2 Future
JHX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.43% yearly.
JHX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.76% yearly.
EPS Next Y-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
EPS Next 5Y13.43%
Revenue Next Year14.93%
Revenue Next 2Y16.29%
Revenue Next 3Y15.12%
Revenue Next 5Y13.76%
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
Based on the Price/Earnings ratio of 16.31, the valuation of JHX can be described as correct.
Based on the Price/Earnings ratio, JHX is valued cheaper than 84.62% of the companies in the same industry.
JHX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.62 indicates a rather expensive valuation of JHX.
JHX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.92. JHX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JHX is valued a bit cheaper than 69.23% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than JHX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.38 | ||
| EV/EBITDA | 11.4 |
4.3 Compensation for Growth
JHX has a very decent profitability rating, which may justify a higher PE ratio.
JHX's earnings are expected to decrease with -2.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, JHX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.09, JHX pays a better dividend. On top of this JHX pays more dividend than 92.31% of the companies listed in the same industry.
JHX's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| 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 2Y-12.72%
EPS Next 3Y-2.13%
22.34
+0.34 (+1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change0.71%
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap9.60B
Revenue(TTM)3.79B
Net Income(TTM)331.30M
Analysts71.76
Price Target23.83 (6.67%)
Short Float %26.21%
Short Ratio1.84
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)0
Avg EPS beat(2)-7.94%
Min EPS beat(2)-13.86%
Max EPS beat(2)-2.01%
EPS beat(4)2
Avg EPS beat(4)-1.82%
Min EPS beat(4)-13.86%
Max EPS beat(4)6.34%
EPS beat(8)4
Avg EPS beat(8)-0.94%
EPS beat(12)6
Avg EPS beat(12)-1.29%
EPS beat(16)7
Avg EPS beat(16)-1.79%
Revenue beat(2)0
Avg Revenue beat(2)-4.31%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)-1.51%
Revenue beat(8)2
Avg Revenue beat(8)-1.76%
Revenue beat(12)4
Avg Revenue beat(12)-2.04%
Revenue beat(16)7
Avg Revenue beat(16)-1.22%
PT rev (1m)-0.43%
PT rev (3m)-19.36%
EPS NQ rev (1m)15.54%
EPS NQ rev (3m)-28.21%
EPS NY rev (1m)-12.39%
EPS NY rev (3m)-45.64%
Revenue NQ rev (1m)3.52%
Revenue NQ rev (3m)25.65%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 19.62 | ||
| P/S | 2.54 | ||
| P/FCF | 22.38 | ||
| P/OCF | 11.65 | ||
| P/B | 4.26 | ||
| P/tB | 5.08 | ||
| EV/EBITDA | 11.4 |
EPS(TTM)1.37
EY6.13%
EPS(NY)1.14
Fwd EY5.1%
FCF(TTM)1
FCFY4.47%
OCF(TTM)1.92
OCFY8.59%
SpS8.81
BVpS5.25
TBVpS4.4
PEG (NY)N/A
PEG (5Y)1.19
Graham Number12.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 14.68% | ||
| ROCE | 13.36% | ||
| ROIC | 8.9% | ||
| ROICexc | 9.53% | ||
| ROICexgc | 10.2% | ||
| OM | 20.97% | ||
| PM (TTM) | 8.75% | ||
| GM | 38.17% | ||
| FCFM | 11.33% |
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%
ROICexgc growth 3Y-3.58%
ROICexgc 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-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 177.48% | ||
| Cap/Sales | 10.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.11% | ||
| Profit Quality | 129.49% | ||
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.31 | ||
| Altman-Z | 2.98 |
F-Score4
WACC7.19%
ROIC/WACC1.24
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)-15.95%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-29.27%
EPS Next Y-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
EPS Next 5Y13.43%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
Revenue Next Year14.93%
Revenue Next 2Y16.29%
Revenue Next 3Y15.12%
Revenue Next 5Y13.76%
EBIT growth 1Y-15.63%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year28.33%
EBIT Next 3Y23.57%
EBIT Next 5Y24%
FCF growth 1Y162.39%
FCF growth 3Y-8.66%
FCF growth 5Y8.14%
OCF growth 1Y16.75%
OCF growth 3Y1.97%
OCF growth 5Y12.21%
JAMES HARDIE IND PLC / JHX FAQ
Can you provide the ChartMill fundamental rating for JAMES HARDIE IND PLC?
ChartMill assigns a fundamental rating of 6 / 10 to JHX.
What is the valuation status for JHX stock?
ChartMill assigns a valuation rating of 5 / 10 to JAMES HARDIE IND PLC (JHX). This can be considered as Fairly Valued.
Can you provide the profitability details for JAMES HARDIE IND PLC?
JAMES HARDIE IND PLC (JHX) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for JHX stock?
The Price/Earnings (PE) ratio for JAMES HARDIE IND PLC (JHX) is 16.31 and the Price/Book (PB) ratio is 4.26.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 7 / 10.