JAMES HARDIE IND PLC-SP ADR (JHX)
US47030M1062 - ADR
We assign a fundamental rating of 6 out of 10 to JHX. JHX was compared to 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 is not valued too expensively and it also shows a decent growth rate. This makes JHX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year JHX was profitable.
JHX had a positive operating cash flow in the past year.
JHX had positive earnings in each of the past 5 years.
In the past 5 years JHX always reported a positive cash flow from operatings.
1.2 Ratios
JHX's Return On Assets of 11.13% is fine compared to the rest of the industry. JHX outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 28.28%, JHX belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.63%, JHX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 28.28% | ||
| ROIC | 15.63% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.92%, JHX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
JHX's Profit Margin has improved in the last couple of years.
JHX has a Operating Margin of 23.23%. This is amongst the best in the industry. JHX outperforms 83.33% of its industry peers.
JHX's Operating Margin has improved in the last couple of years.
The Gross Margin of JHX (39.17%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of JHX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.23% | ||
| PM (TTM) | 13.92% | ||
| GM | 39.17% |
OM growth 3Y3.26%
OM growth 5Y1.85%
PM growth 3Y13.53%
PM growth 5Y13.77%
GM growth 3Y-1.12%
GM growth 5Y-0.48%
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.
JHX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 5.22 indicates that JHX is not in any danger for bankruptcy at the moment.
JHX has a better Altman-Z score (5.22) than 75.00% of its industry peers.
The Debt to FCF ratio of JHX is 2.50, which is a good value as it means it would take JHX, 2.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.50, JHX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
JHX has a Debt/Equity ratio of 0.60. This is a neutral value indicating JHX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, JHX is in line with its industry, outperforming 41.67% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for JHX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 2.5 | ||
| Altman-Z | 5.22 |
ROIC/WACC2.11
WACC7.4%
2.3 Liquidity
A Current Ratio of 1.89 indicates that JHX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.89, JHX is in line with its industry, outperforming 41.67% of the companies in the same industry.
JHX has a Quick Ratio of 1.46. 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 (1.46) which is comparable to the rest of the industry.
JHX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
JHX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.99%.
JHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.84% yearly.
JHX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.57%.
JHX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.95% yearly.
EPS 1Y (TTM)7.99%
EPS 3Y20.09%
EPS 5Y15.84%
EPS growth Q2Q41.38%
Revenue 1Y (TTM)0.57%
Revenue growth 3Y13.16%
Revenue growth 5Y12.95%
Revenue growth Q2Q13.65%
3.2 Future
The Earnings Per Share is expected to grow by 13.82% on average over the next years. This is quite good.
JHX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.
EPS Next Y20.53%
EPS Next 2Y14.38%
EPS Next 3Y15.3%
EPS Next 5Y13.82%
Revenue Next Year4.94%
Revenue Next 2Y6.67%
Revenue Next 3Y8.34%
Revenue Next 5Y8.2%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.22, the valuation of JHX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. JHX is around the same levels.
Based on the Price/Forward Earnings ratio of 20.13, the valuation of JHX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, JHX is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
JHX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 20.13 |
4.2 Price Multiples
JHX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. JHX is cheaper than 75.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JHX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.32 | ||
| EV/EBITDA | 15.19 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
JHX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as JHX's earnings are expected to grow with 15.30% in the coming years.
PEG (NY)1.13
PEG (5Y)1.47
EPS Next 2Y14.38%
EPS Next 3Y15.3%
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 1.79, JHX pays a better dividend. On top of this JHX pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, JHX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
The dividend of JHX has a limited annual growth rate of 4.43%.
JHX has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
JHX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0%
EPS Next 2Y14.38%
EPS Next 3Y15.3%
JAMES HARDIE IND PLC-SP ADR
NYSE:JHX (5/3/2024, 7:04:00 PM)
35.76
+0.66 (+1.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 20.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.13
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.13% | ||
| ROE | 28.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.23% | ||
| PM (TTM) | 13.92% | ||
| GM | 39.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.99%
EPS 3Y20.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.57%
Revenue growth 3Y13.16%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y