JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - NYSE:JHX - US47030M1062 - Common Stock
19.72 USD
+0.04 (+0.2%)
19.72 USD
0 (0%)
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 decent growth rate and is not valued too expensively. This makes JHX very considerable 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.
In the past 5 years JHX always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.88%, JHX is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
JHX has a better Return On Equity (14.68%) than 61.54% of its industry peers.
With a decent Return On Invested Capital value of 8.90%, JHX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for JHX is above the industry average of 10.33%.
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
JHX has a Profit Margin of 8.75%. This is in the lower half of the industry: JHX underperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of JHX has grown nicely.
The Operating Margin of JHX (20.97%) is better than 76.92% of its industry peers.
In the last couple of years the Operating Margin of JHX has grown nicely.
JHX has a better Gross Margin (38.17%) than 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
JHX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, JHX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 indicates that JHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.85, JHX perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
The Debt to FCF ratio of JHX is 5.89, which is a neutral value as it means it would take JHX, 5.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.89, JHX is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
JHX has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
JHX's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. JHX is outperformed by 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.25
WACC7.14%
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.
With an excellent Current ratio value of 3.76, JHX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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 better Quick ratio (3.31) than 92.31% of its industry peers.
| 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
JHX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.52% yearly.
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 Y-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y0.05%
EPS Next 5Y11.52%
Revenue Next Year14.98%
Revenue Next 2Y16.21%
Revenue Next 3Y14.55%
Revenue Next 5Y14.47%
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.
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
JHX is valuated correctly with a Price/Earnings ratio of 14.39.
Compared to the rest of the industry, the Price/Earnings ratio of JHX indicates a rather cheap valuation: JHX is cheaper than 84.62% of the companies listed in the same industry.
JHX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
JHX is valuated rather expensively with a Price/Forward Earnings ratio of 17.32.
69.23% of the companies in the same industry are more expensive than JHX, based on the Price/Forward Earnings ratio.
JHX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 17.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 76.92% of the companies listed 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 | 19.76 | ||
| EV/EBITDA | 10.44 |
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)1.05
EPS Next 2Y-12.72%
EPS Next 3Y0.05%
5. Dividend
5.1 Amount
JHX has a Yearly Dividend Yield of 2.07%.
The stock price of JHX dropped by -31.46% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
JHX's Dividend Yield is rather good when compared to the industry average which is at 4.34. JHX pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, 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 3Y0.05%
19.72
+0.04 (+0.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change198.7%
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap8.48B
Analysts71.76
Price Target23.93 (21.35%)
Short Float %23.52%
Short Ratio1.79
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)9.86%
PT rev (3m)-18%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)-41.47%
EPS NY rev (1m)-12.39%
EPS NY rev (3m)-45.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)17.4%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.39 | ||
| Fwd PE | 17.32 | ||
| P/S | 2.24 | ||
| P/FCF | 19.76 | ||
| P/OCF | 10.28 | ||
| P/B | 3.76 | ||
| P/tB | 4.48 | ||
| EV/EBITDA | 10.44 |
EPS(TTM)1.37
EY6.95%
EPS(NY)1.14
Fwd EY5.77%
FCF(TTM)1
FCFY5.06%
OCF(TTM)1.92
OCFY9.73%
SpS8.81
BVpS5.25
TBVpS4.4
PEG (NY)N/A
PEG (5Y)1.05
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%
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-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 | 2.85 |
F-Score4
WACC7.14%
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-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y0.05%
EPS Next 5Y11.52%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
Revenue Next Year14.98%
Revenue Next 2Y16.21%
Revenue Next 3Y14.55%
Revenue Next 5Y14.47%
EBIT growth 1Y-15.63%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year28.33%
EBIT Next 3Y24.11%
EBIT Next 5Y24.65%
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%