JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - NYSE:JHX - US47030M1062 - Common Stock
22.34 USD
+0.34 (+1.55%)
22.42 USD
+0.08 (+0.36%)
We assign a fundamental rating of 6 out of 10 to JHX. JHX was compared to 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 would make JHX suitable 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.
JHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
JHX has a worse Return On Assets (4.88%) than 69.23% 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.
JHX has a Return On Invested Capital of 8.90%. This is in the better half of the industry: JHX outperforms 69.23% 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 10.33%.
The 3 year average ROIC (13.97%) for JHX is well above the current ROIC(8.90%). The reason for the recent decline needs to be investigated.
| 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 76.92% of the companies in the same industry.
JHX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.97%, JHX is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of JHX has grown nicely.
With an excellent Gross Margin value of 38.17%, JHX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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
Compared to 1 year ago, JHX has an improved debt to assets ratio.
2.2 Solvency
JHX has an Altman-Z score of 3.00. This indicates that JHX is financially healthy and has little risk of bankruptcy at the moment.
JHX's Altman-Z score of 3.00 is in line compared to the rest of the industry. JHX outperforms 53.85% of 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 better Debt to FCF ratio (5.89) than 69.23% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that JHX has dependencies on debt 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 | 3 |
ROIC/WACC1.24
WACC7.19%
2.3 Liquidity
A Current Ratio of 3.76 indicates that JHX has no problem at all paying 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.
Looking at the Quick ratio, with a value of 3.31, JHX belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
JHX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.95%.
The Earnings Per Share has been growing by 13.73% on average over the past years. This is quite good.
JHX shows a decrease in Revenue. In the last year, the revenue decreased by -4.74%.
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 13.43% 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 13.76% on average per year.
EPS Next Y-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
EPS Next 5Y13.43%
Revenue Next Year14.93%
Revenue Next 2Y16.29%
Revenue Next 3Y15.12%
Revenue Next 5Y13.76%
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
A Price/Earnings ratio of 16.31 indicates a correct valuation of JHX.
Based on the Price/Earnings ratio, JHX is valued cheaper than 84.62% of the companies in the same industry.
JHX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
JHX is valuated rather expensively with a Price/Forward Earnings ratio of 19.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JHX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, JHX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 19.62 |
4.2 Price Multiples
JHX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. JHX is cheaper than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, JHX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.38 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
The decent profitability rating of JHX may justify a higher PE ratio.
A cheap valuation may be justified as JHX's earnings are expected to decrease with -2.13% in the coming years.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
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 4.19, 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 2.31, JHX has a dividend comparable with the average S&P500 company.
| 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-12.72%
EPS Next 3Y-2.13%
22.34
+0.34 (+1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change1.52%
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap9.60B
Revenue(TTM)3.79B
Net Income(TTM)331.30M
Analysts71.76
Price Target23.83 (6.67%)
Short Float %26.21%
Short Ratio1.84
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)-0.43%
PT rev (3m)-19.36%
EPS NQ rev (1m)15.54%
EPS NQ rev (3m)-28.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-45.64%
Revenue NQ rev (1m)3.52%
Revenue NQ rev (3m)25.65%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 19.62 | ||
| P/S | 2.54 | ||
| P/FCF | 22.38 | ||
| P/OCF | 11.65 | ||
| P/B | 4.26 | ||
| P/tB | 5.08 | ||
| EV/EBITDA | 11.54 |
EPS(TTM)1.37
EY6.13%
EPS(NY)1.14
Fwd EY5.1%
FCF(TTM)1
FCFY4.47%
OCF(TTM)1.92
OCFY8.59%
SpS8.81
BVpS5.25
TBVpS4.4
PEG (NY)N/A
PEG (5Y)1.19
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 | 3 |
F-Score4
WACC7.19%
ROIC/WACC1.24
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-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
EPS Next 5Y13.43%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
Revenue Next Year14.93%
Revenue Next 2Y16.29%
Revenue Next 3Y15.12%
Revenue Next 5Y13.76%
EBIT growth 1Y-15.63%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year28.33%
EBIT Next 3Y23.57%
EBIT Next 5Y24%
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 5 / 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 16.31 and the Price/Book (PB) ratio is 4.26.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 7 / 10.