JAMES HARDIE IND PLC-SP ADR (JHX) Stock Fundamental Analysis
NYSE:JHX - New York Stock Exchange, Inc. - US47030M1062 - ADR - Currency: USD
Overall JHX gets a fundamental rating of 6 out of 10. We evaluated JHX against 12 industry peers in the Construction Materials industry. JHX has an excellent financial health rating, but there are some minor concerns on its profitability. JHX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
JHX had positive earnings in the past year.
JHX had a positive operating cash flow in the past year.
Each year in the past 5 years JHX has been profitable.
JHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 8.88%, JHX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Equity of JHX (20.76%) is comparable to the rest of the industry.
The Return On Invested Capital of JHX (14.47%) is better than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JHX is below the industry average of 19.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.88% | ||
| ROE | 20.76% | ||
| ROIC | 14.47% |
ROA(3y)10.88%
ROA(5y)9.01%
ROE(3y)31.22%
ROE(5y)28.35%
ROIC(3y)15.42%
ROIC(5y)13.9%
1.3 Margins
JHX has a Profit Margin (11.15%) which is in line with its industry peers.
In the last couple of years the Profit Margin of JHX has grown nicely.
JHX has a better Operating Margin (22.60%) than 66.67% of its industry peers.
JHX's Operating Margin has improved in the last couple of years.
JHX has a better Gross Margin (39.45%) than 91.67% of its industry peers.
In the last couple of years the Gross Margin of JHX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.6% | ||
| PM (TTM) | 11.15% | ||
| GM | 39.45% |
OM growth 3Y3.29%
OM growth 5Y8.96%
PM growth 3Y12.78%
PM growth 5Y7.26%
GM growth 3Y3.66%
GM growth 5Y4.01%
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
Compared to 5 years ago, JHX has less shares outstanding
JHX has a better debt/assets ratio than last year.
2.2 Solvency
JHX has an Altman-Z score of 4.39. This indicates that JHX is financially healthy and has little risk of bankruptcy at the moment.
JHX has a better Altman-Z score (4.39) than 75.00% of its industry peers.
The Debt to FCF ratio of JHX is 3.00, which is a good value as it means it would take JHX, 3.00 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.00, JHX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that JHX is somewhat dependend on debt financing.
JHX has a Debt to Equity ratio (0.52) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3 | ||
| Altman-Z | 4.39 |
ROIC/WACC2
WACC7.22%
2.3 Liquidity
JHX has a Current Ratio of 2.18. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
JHX has a Current ratio of 2.18. This is comparable to the rest of the industry: JHX outperforms 50.00% of 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 Quick ratio of 1.67. This is amongst the best in the industry. JHX outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for JHX have decreased by -0.65% 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 18.85% on average per year.
The Revenue has been growing slightly by 1.60% in the past year.
Measured over the past years, JHX shows a quite strong growth in Revenue. The Revenue has been growing by 9.45% on average per year.
EPS 1Y (TTM)-0.65%
EPS 3Y16.09%
EPS 5Y18.85%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y10.61%
Revenue growth 5Y9.45%
Sales Q2Q%-2.56%
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 11.69% yearly.
Based on estimates for the next years, JHX will show a small growth in Revenue. The Revenue will grow by 7.16% on average per year.
EPS Next Y-6.52%
EPS Next 2Y-0.89%
EPS Next 3Y5.07%
EPS Next 5Y11.69%
Revenue Next Year-1.48%
Revenue Next 2Y4.43%
Revenue Next 3Y7.41%
Revenue Next 5Y7.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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 16.16, the valuation of JHX can be described as correct.
75.00% of the companies in the same industry are more expensive than JHX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (26.60), we can say JHX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.60, JHX is valued correctly.
66.67% of the companies in the same industry are more expensive than JHX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of JHX to the average of the S&P500 Index (22.43), we can say JHX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 15.6 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than JHX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, JHX is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.88 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y-0.89%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
JHX has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of JHX has falen by -21.96%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
JHX's Dividend Yield is rather good when compared to the industry average which is at 5.29. JHX pays more dividend than 91.67% of the companies in the same industry.
JHX's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| 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-0.89%
EPS Next 3Y5.07%
24.73
-0.52 (-2.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.39%
Inst Owner Change318.86%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap10.63B
Analysts73.75
Price Target32.15 (30%)
Short Float %5.34%
Short Ratio8.92
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)2
Avg EPS beat(2)4.29%
Min EPS beat(2)2.25%
Max EPS beat(2)6.34%
EPS beat(4)3
Avg EPS beat(4)1.66%
Min EPS beat(4)-5.65%
Max EPS beat(4)6.34%
EPS beat(8)6
Avg EPS beat(8)3.03%
EPS beat(12)6
Avg EPS beat(12)-0.65%
EPS beat(16)8
Avg EPS beat(16)-0.89%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)-1.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.27%
Revenue beat(12)6
Avg Revenue beat(12)-0.94%
Revenue beat(16)9
Avg Revenue beat(16)-0.32%
PT rev (1m)3.94%
PT rev (3m)-14.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 15.6 | ||
| P/S | 2.72 | ||
| P/FCF | 28.88 | ||
| P/OCF | 12.93 | ||
| P/B | 5.06 | ||
| P/tB | 5.99 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)1.53
EY6.19%
EPS(NY)1.59
Fwd EY6.41%
FCF(TTM)0.86
FCFY3.46%
OCF(TTM)1.91
OCFY7.73%
SpS9.1
BVpS4.89
TBVpS4.13
PEG (NY)N/A
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.88% | ||
| ROE | 20.76% | ||
| ROCE | 20.92% | ||
| ROIC | 14.47% | ||
| ROICexc | 16.59% | ||
| ROICexgc | 18.21% | ||
| OM | 22.6% | ||
| PM (TTM) | 11.15% | ||
| GM | 39.45% | ||
| FCFM | 9.41% |
ROA(3y)10.88%
ROA(5y)9.01%
ROE(3y)31.22%
ROE(5y)28.35%
ROIC(3y)15.42%
ROIC(5y)13.9%
ROICexc(3y)16.28%
ROICexc(5y)14.69%
ROICexgc(3y)18.06%
ROICexgc(5y)16.43%
ROCE(3y)22.29%
ROCE(5y)20.1%
ROICexcg growth 3Y4.34%
ROICexcg growth 5Y16.97%
ROICexc growth 3Y5.82%
ROICexc growth 5Y17.42%
OM growth 3Y3.29%
OM growth 5Y8.96%
PM growth 3Y12.78%
PM growth 5Y7.26%
GM growth 3Y3.66%
GM growth 5Y4.01%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 221.4% | ||
| Cap/Sales | 11.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.51% | ||
| Profit Quality | 84.4% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 4.39 |
F-Score7
WACC7.22%
ROIC/WACC2
Cap/Depr(3y)248.26%
Cap/Depr(5y)194.83%
Cap/Sales(3y)11.4%
Cap/Sales(5y)9.09%
Profit Quality(3y)67.69%
Profit Quality(5y)113.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.65%
EPS 3Y16.09%
EPS 5Y18.85%
EPS Q2Q%-12.2%
EPS Next Y-6.52%
EPS Next 2Y-0.89%
EPS Next 3Y5.07%
EPS Next 5Y11.69%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y10.61%
Revenue growth 5Y9.45%
Sales Q2Q%-2.56%
Revenue Next Year-1.48%
Revenue Next 2Y4.43%
Revenue Next 3Y7.41%
Revenue Next 5Y7.16%
EBIT growth 1Y-1.19%
EBIT growth 3Y14.25%
EBIT growth 5Y19.25%
EBIT Next Year14.27%
EBIT Next 3Y13.31%
EBIT Next 5Y13.95%
FCF growth 1Y260.78%
FCF growth 3Y-11.74%
FCF growth 5YN/A
OCF growth 1Y29.26%
OCF growth 3Y5.13%
OCF growth 5Y24.63%