JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JHX - US47030M1062 - Common Stock
19.14 USD
+0.51 (+2.74%)
19.6 USD
+0.46 (+2.4%)
JHX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. There are concerns on the financial health of JHX while its profitability can be described as average. JHX has a decent growth rate and is not valued too expensively.
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
With a Return On Assets value of 1.37%, JHX is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
With a Return On Equity value of 3.04%, JHX is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
The Return On Invested Capital of JHX (3.80%) is worse than 84.62% of its industry peers.
JHX had an Average Return On Invested Capital over the past 3 years of 13.97%. This is above the industry average of 9.42%.
The last Return On Invested Capital (3.80%) 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 | 1.37% | ||
| ROE | 3.04% | ||
| ROIC | 3.8% |
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 worse Profit Margin (4.67%) than 84.62% of its industry peers.
JHX's Profit Margin has improved in the last couple of years.
The Operating Margin of JHX (17.93%) is better than 61.54% of its industry peers.
JHX's Operating Margin has improved in the last couple of years.
JHX has a better Gross Margin (36.27%) than 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 | 17.93% | ||
| PM (TTM) | 4.67% | ||
| GM | 36.27% |
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
JHX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, JHX has less shares outstanding
JHX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, JHX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.35, we must say that JHX is in the distress zone and has some risk of bankruptcy.
JHX has a Altman-Z score of 1.35. This is in the lower half of the industry: JHX underperforms 69.23% of its industry peers.
JHX has a debt to FCF ratio of 17.06. This is a negative value and a sign of low solvency as JHX would need 17.06 years to pay back of all of its debts.
JHX has a Debt to FCF ratio of 17.06. This is in the lower half of the industry: JHX underperforms 61.54% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that JHX is somewhat dependend on debt financing.
JHX has a worse Debt to Equity ratio (0.80) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 17.06 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.54
WACC7.06%
2.3 Liquidity
JHX has a Current Ratio of 1.79. This is a normal value and indicates that JHX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.79, JHX is in line with its industry, outperforming 46.15% of the companies in the same industry.
JHX has a Quick Ratio of 1.23. This is a normal value and indicates that JHX is financially healthy and should not expect problems in meeting its short term obligations.
JHX has a Quick ratio (1.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for JHX have decreased strongly by -19.62% in the last year.
Measured over the past years, JHX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.73% on average per year.
Looking at the last year, JHX shows a small growth in Revenue. The Revenue has grown by 4.60% in the last year.
The Revenue has been growing by 8.27% on average over the past years. This is quite good.
EPS 1Y (TTM)-19.62%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-27.78%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%34.49%
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 8.91% on average per year.
The Revenue is expected to grow by 13.86% on average over the next years. This is quite good.
EPS Next Y-38.52%
EPS Next 2Y-12.64%
EPS Next 3Y1.69%
EPS Next 5Y8.91%
Revenue Next Year20.05%
Revenue Next 2Y18.44%
Revenue Next 3Y15.68%
Revenue Next 5Y13.86%
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 decreasing.
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 11.19 indicates a reasonable valuation of JHX.
Based on the Price/Earnings ratio, JHX is valued cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (25.98), we can say JHX is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.53, JHX is valued correctly.
92.31% of the companies in the same industry are more expensive than JHX, based on the Price/Forward Earnings ratio.
JHX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JHX is on the same level as its industry peers.
JHX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JHX is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.43 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y-12.64%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
JHX has a Yearly Dividend Yield of 2.07%.
Compared to an average industry Dividend Yield of 4.03, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
JHX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y-12.64%
EPS Next 3Y1.69%
19.14
+0.51 (+2.74%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change92.4%
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap8.23B
Revenue(TTM)4.12B
Net Income(TTM)192.10M
Analysts74.12
Price Target24.92 (30.2%)
Short Float %25.21%
Short Ratio2.38
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)-5.28%
Min EPS beat(2)-13.86%
Max EPS beat(2)3.3%
EPS beat(4)2
Avg EPS beat(4)-2.58%
Min EPS beat(4)-13.86%
Max EPS beat(4)3.3%
EPS beat(8)5
Avg EPS beat(8)-0.42%
EPS beat(12)7
Avg EPS beat(12)-0.62%
EPS beat(16)7
Avg EPS beat(16)-1.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)-0.37%
Revenue beat(8)1
Avg Revenue beat(8)-1.96%
Revenue beat(12)4
Avg Revenue beat(12)-1.54%
Revenue beat(16)6
Avg Revenue beat(16)-1.27%
PT rev (1m)4.61%
PT rev (3m)14.43%
EPS NQ rev (1m)11.38%
EPS NQ rev (3m)-25.22%
EPS NY rev (1m)42.91%
EPS NY rev (3m)25.35%
Revenue NQ rev (1m)3.82%
Revenue NQ rev (3m)5.53%
Revenue NY rev (1m)4.45%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 12.53 | ||
| P/S | 2 | ||
| P/FCF | 27.43 | ||
| P/OCF | 11.88 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.34 |
EPS(TTM)1.71
EY8.93%
EPS(NY)1.53
Fwd EY7.98%
FCF(TTM)0.7
FCFY3.65%
OCF(TTM)1.61
OCFY8.42%
SpS9.58
BVpS14.71
TBVpS-4.76
PEG (NY)N/A
PEG (5Y)0.82
Graham Number23.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 3.04% | ||
| ROCE | 5.7% | ||
| ROIC | 3.8% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 12.29% | ||
| OM | 17.93% | ||
| PM (TTM) | 4.67% | ||
| GM | 36.27% | ||
| FCFM | 7.28% |
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-Score3
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 17.06 | ||
| Debt/EBITDA | 4.9 | ||
| Cap/Depr | 132.11% | ||
| Cap/Sales | 9.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.91% | ||
| Profit Quality | 156.12% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.35 |
F-Score3
WACC7.06%
ROIC/WACC0.54
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)-19.62%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-27.78%
EPS Next Y-38.52%
EPS Next 2Y-12.64%
EPS Next 3Y1.69%
EPS Next 5Y8.91%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%34.49%
Revenue Next Year20.05%
Revenue Next 2Y18.44%
Revenue Next 3Y15.68%
Revenue Next 5Y13.86%
EBIT growth 1Y-19.01%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year28.33%
EBIT Next 3Y26.06%
EBIT Next 5Y24.03%
FCF growth 1Y4.02%
FCF growth 3Y-8.66%
FCF growth 5Y8.14%
OCF growth 1Y-13.63%
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 5 / 10 to JHX.
What is the valuation status for JHX stock?
ChartMill assigns a valuation rating of 6 / 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 6 / 10.
Can you provide the PE and PB ratios for JHX stock?
The Price/Earnings (PE) ratio for JAMES HARDIE IND PLC (JHX) is 11.19 and the Price/Book (PB) ratio is 1.3.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 3 / 10.