JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
NYSE:JHX - New York Stock Exchange, Inc. - US47030M1062 - Common Stock - 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 outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. JHX has a correct valuation and a medium growth rate. This makes JHX very considerable 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.
Each year in the past 5 years JHX has been profitable.
Each year in the past 5 years JHX had a positive operating cash flow.
1.2 Ratios
JHX's Return On Assets of 8.11% is in line compared to the rest of the industry. JHX outperforms 58.33% of its industry peers.
Looking at the Return On Equity, with a value of 19.62%, JHX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
JHX has a Return On Invested Capital of 12.97%. This is amongst the best in the industry. JHX outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JHX is above the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 19.62% | ||
| ROIC | 12.97% |
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's Profit Margin of 10.93% is in line compared to the rest of the industry. JHX outperforms 58.33% of its industry peers.
JHX's Profit Margin has improved in the last couple of years.
JHX has a better Operating Margin (22.19%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of JHX has grown nicely.
Looking at the Gross Margin, with a value of 38.81%, JHX belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
JHX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.19% | ||
| PM (TTM) | 10.93% | ||
| GM | 38.81% |
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.
The number of shares outstanding for JHX has been reduced compared to 1 year ago.
JHX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for JHX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.37 indicates that JHX is not in any danger for bankruptcy at the moment.
JHX has a Altman-Z score of 4.37. This is in the better half of the industry: JHX outperforms 75.00% of its industry peers.
JHX has a debt to FCF ratio of 2.95. This is a good value and a sign of high solvency as JHX would need 2.95 years to pay back of all of its debts.
JHX has a better Debt to FCF ratio (2.95) than 91.67% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that JHX is somewhat dependend on debt financing.
The Debt to Equity ratio of JHX (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 4.37 |
ROIC/WACC1.8
WACC7.2%
2.3 Liquidity
JHX has a Current Ratio of 2.10. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.10, JHX perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
JHX has a Quick Ratio of 1.67. 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 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 | 2.1 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for JHX have decreased by -7.45% 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.
The Revenue has decreased by -1.49% in the past year.
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)-7.45%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-10%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-3.32%
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 15.48% yearly.
JHX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.32% yearly.
EPS Next Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y10.76%
EPS Next 5Y15.48%
Revenue Next Year10.68%
Revenue Next 2Y12.16%
Revenue Next 3Y11.95%
Revenue Next 5Y15.32%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 19.31, JHX is valued on the expensive side.
Based on the Price/Earnings ratio, JHX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (27.45), we can say JHX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.16, JHX is valued on the expensive side.
JHX's Price/Forward Earnings is on the same level as the industry average.
JHX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 18.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JHX is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.49 | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JHX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.15
PEG (5Y)1.41
EPS Next 2Y11.95%
EPS Next 3Y10.76%
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 4.22, JHX pays a better dividend. On top of this JHX pays more dividend than 91.67% of the companies listed in the same industry.
JHX's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| 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 2Y11.95%
EPS Next 3Y10.76%
28.77
+0.42 (+1.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change318.32%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap12.37B
Analysts73.75
Price Target29.18 (1.43%)
Short Float %9.17%
Short Ratio8.6
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)0.12%
Min EPS beat(2)-2.01%
Max EPS beat(2)2.25%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-2.01%
Max EPS beat(4)6.34%
EPS beat(8)5
Avg EPS beat(8)2.59%
EPS beat(12)6
Avg EPS beat(12)-0.6%
EPS beat(16)7
Avg EPS beat(16)-1.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)-1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)-1.34%
Revenue beat(16)8
Avg Revenue beat(16)-0.53%
PT rev (1m)-9.25%
PT rev (3m)-19.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 18.16 | ||
| P/S | 3.19 | ||
| P/FCF | 32.49 | ||
| P/OCF | 15.4 | ||
| P/B | 5.72 | ||
| P/tB | 6.79 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)1.49
EY5.18%
EPS(NY)1.58
Fwd EY5.51%
FCF(TTM)0.89
FCFY3.08%
OCF(TTM)1.87
OCFY6.49%
SpS9.02
BVpS5.03
TBVpS4.24
PEG (NY)3.15
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 19.62% | ||
| ROCE | 19.47% | ||
| ROIC | 12.97% | ||
| ROICexc | 14.87% | ||
| ROICexgc | 16.3% | ||
| OM | 22.19% | ||
| PM (TTM) | 10.93% | ||
| GM | 38.81% | ||
| FCFM | 9.82% |
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%
ROICexcg growth 3Y-3.58%
ROICexcg 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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 195.28% | ||
| Cap/Sales | 10.89% | ||
| Interest Coverage | 13.53 | ||
| Cash Conversion | 74.58% | ||
| Profit Quality | 89.76% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 4.37 |
F-Score6
WACC7.2%
ROIC/WACC1.8
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)-7.45%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-10%
EPS Next Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y10.76%
EPS Next 5Y15.48%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-3.32%
Revenue Next Year10.68%
Revenue Next 2Y12.16%
Revenue Next 3Y11.95%
Revenue Next 5Y15.32%
EBIT growth 1Y-8.4%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year36.44%
EBIT Next 3Y23.39%
EBIT Next 5Y24.62%
FCF growth 1Y-18.13%
FCF growth 3Y-8.66%
FCF growth 5Y8.14%
OCF growth 1Y-12.19%
OCF growth 3Y1.97%
OCF growth 5Y12.21%