JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - NYSE:JHX - US47030M1062 - Common Stock
17.83 USD
+1.14 (+6.83%)
17.77 USD
-0.06 (-0.34%)
JHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. JHX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. JHX has a correct valuation and a medium growth rate. These ratings could make JHX a good candidate 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.
In the past 5 years JHX has always been profitable.
JHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of JHX (4.88%) is worse than 61.54% of its industry peers.
Looking at the Return On Equity, with a value of 14.68%, JHX is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
The Return On Invested Capital of JHX (8.90%) is better than 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JHX is above the industry average of 9.84%.
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
Looking at the Profit Margin, with a value of 8.75%, JHX is doing worse than 69.23% of the companies in the same industry.
JHX's Profit Margin has improved in the last couple of years.
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.
JHX's Operating Margin has improved in the last couple of years.
JHX has a Gross Margin of 38.17%. This is amongst the best in 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
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 2.74 indicates that JHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
JHX has a Altman-Z score (2.74) which is in line with 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.
JHX has a Debt to FCF ratio of 5.89. This is in the better half of the industry: JHX outperforms 61.54% 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.
Looking at the Debt to Equity ratio, with a value of 1.12, JHX is doing worse than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.74 |
ROIC/WACC1.25
WACC7.1%
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.
The Current ratio of JHX (3.76) is better 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.
The Earnings Per Share has been growing by 13.73% on average over the past years. This is quite good.
The Revenue has decreased by -4.74% in the past year.
Measured over the past years, JHX shows a quite strong growth in Revenue. The Revenue has been growing by 8.27% on average per year.
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
Based on estimates for the next years, JHX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.17% on average per year.
Based on estimates for the next years, JHX will show a quite strong growth in Revenue. The Revenue will grow by 15.32% on average per year.
EPS Next Y-38.52%
EPS Next 2Y-12.64%
EPS Next 3Y-0.45%
EPS Next 5Y12.17%
Revenue Next Year20.05%
Revenue Next 2Y18.44%
Revenue Next 3Y16.45%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.01, JHX is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of JHX indicates a rather cheap valuation: JHX is cheaper than 92.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (25.51), we can say JHX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.64, JHX is valued correctly.
JHX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JHX is cheaper than 76.92% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. JHX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
JHX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. JHX is cheaper than 76.92% of the companies in the same industry.
JHX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JHX is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.87 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
JHX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-12.64%
EPS Next 3Y-0.45%
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 3.99, JHX pays a better dividend. On top of this JHX pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, JHX has a dividend comparable with the average S&P500 company.
| 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 3Y-0.45%
17.83
+1.14 (+6.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change89.96%
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap7.66B
Revenue(TTM)3.79B
Net Income(TTM)331.30M
Analysts74.12
Price Target24.92 (39.76%)
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)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)5.76%
PT rev (3m)-14.96%
EPS NQ rev (1m)-8.61%
EPS NQ rev (3m)-27.72%
EPS NY rev (1m)6.7%
EPS NY rev (3m)-42%
Revenue NQ rev (1m)4.94%
Revenue NQ rev (3m)10.76%
Revenue NY rev (1m)4.45%
Revenue NY rev (3m)6.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 15.64 | ||
| P/S | 2.02 | ||
| P/FCF | 17.87 | ||
| P/OCF | 9.29 | ||
| P/B | 3.4 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 9.64 |
EPS(TTM)1.37
EY7.68%
EPS(NY)1.14
Fwd EY6.4%
FCF(TTM)1
FCFY5.6%
OCF(TTM)1.92
OCFY10.76%
SpS8.81
BVpS5.25
TBVpS4.4
PEG (NY)N/A
PEG (5Y)0.95
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 | 2.74 |
F-Score4
WACC7.1%
ROIC/WACC1.25
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-38.52%
EPS Next 2Y-12.64%
EPS Next 3Y-0.45%
EPS Next 5Y12.17%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
Revenue Next Year20.05%
Revenue Next 2Y18.44%
Revenue Next 3Y16.45%
Revenue Next 5Y15.32%
EBIT growth 1Y-15.63%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year28.33%
EBIT Next 3Y25.05%
EBIT Next 5Y24.62%
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 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 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 13.01 and the Price/Book (PB) ratio is 3.4.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 7 / 10.