JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
NYSE:JHX - New York Stock Exchange, Inc. - US47030M1062 - Common Stock - Currency: USD
Taking everything into account, JHX scores 7 out of 10 in our fundamental rating. JHX was compared to 13 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. 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.
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 has a Return On Assets of 8.11%. This is in the better half of the industry: JHX outperforms 61.54% 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 61.54% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.97%, JHX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for JHX is above the industry average of 10.71%.
| 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
Looking at the Profit Margin, with a value of 10.93%, JHX is in line with its industry, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Profit Margin of JHX has grown nicely.
Looking at the Operating Margin, with a value of 22.19%, JHX is in the better half of 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 38.81%. 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so JHX is creating value.
Compared to 1 year ago, JHX has less shares outstanding
JHX has less shares outstanding than it did 5 years ago.
JHX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.34 indicates that JHX is not in any danger for bankruptcy at the moment.
JHX's Altman-Z score of 4.34 is fine compared to the rest of the industry. JHX outperforms 76.92% of its industry peers.
The Debt to FCF ratio of JHX is 2.95, which is a good value as it means it would take JHX, 2.95 years of fcf income to pay off all of its debts.
JHX has a Debt to FCF ratio of 2.95. This is amongst the best in the industry. JHX outperforms 84.62% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that JHX is somewhat dependend on debt financing.
JHX's Debt to Equity ratio of 0.51 is in line compared to the rest of the industry. JHX outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 4.34 |
ROIC/WACC1.85
WACC7.03%
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.
JHX's Current ratio of 2.10 is in line compared to the rest of the industry. JHX outperforms 53.85% of its industry peers.
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.
With an excellent Quick ratio value of 1.67, JHX belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.67 |
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%.
JHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.73% yearly.
Looking at the last year, JHX shows a decrease in Revenue. The Revenue has decreased by -1.49% in the last 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)-15.95%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-29.27%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
3.2 Future
The Earnings Per Share is expected to grow by 10.68% 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 14.47% yearly.
EPS Next Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y9.28%
EPS Next 5Y10.68%
Revenue Next Year12.82%
Revenue Next 2Y15.3%
Revenue Next 3Y20.58%
Revenue Next 5Y14.47%
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 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 13.61, JHX is valued correctly.
Based on the Price/Earnings ratio, JHX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
JHX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.97 indicates a reasonable valuation of JHX.
Based on the Price/Forward Earnings ratio, JHX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
JHX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, JHX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
JHX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JHX is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.05 | ||
| EV/EBITDA | 11.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates JHX does not grow enough to justify the current Price/Earnings ratio.
JHX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)0.99
EPS Next 2Y11.95%
EPS Next 3Y9.28%
5. Dividend
5.1 Amount
JHX has a Yearly Dividend Yield of 2.07%.
In the last 3 months the price of JHX has falen by -20.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.46, JHX pays a better dividend. On top of this JHX pays more dividend than 92.31% of the companies listed 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 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 2Y11.95%
EPS Next 3Y9.28%
18.64
-9.79 (-34.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change198.69%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap8.01B
Analysts73.75
Price Target29.63 (58.96%)
Short Float %1.75%
Short Ratio1.17
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)1.54%
PT rev (3m)-7.86%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-15.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-2.24%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)1.93%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 9.97 | ||
| P/S | 2.07 | ||
| P/FCF | 21.05 | ||
| P/OCF | 9.98 | ||
| P/B | 3.71 | ||
| P/tB | 4.4 | ||
| EV/EBITDA | 11.87 |
EPS(TTM)1.37
EY7.35%
EPS(NY)1.87
Fwd EY10.04%
FCF(TTM)0.89
FCFY4.75%
OCF(TTM)1.87
OCFY10.02%
SpS9.02
BVpS5.03
TBVpS4.24
PEG (NY)2.22
PEG (5Y)0.99
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 | 4.34 |
F-Score6
WACC7.03%
ROIC/WACC1.85
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 Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y9.28%
EPS Next 5Y10.68%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
Revenue Next Year12.82%
Revenue Next 2Y15.3%
Revenue Next 3Y20.58%
Revenue Next 5Y14.47%
EBIT growth 1Y-8.4%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year36.44%
EBIT Next 3Y34.03%
EBIT Next 5Y22.88%
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%