JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
NYSE:JHX - New York Stock Exchange, Inc. - US47030M1062 - Common Stock - Currency: USD
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
In the past year JHX had a positive cash flow from operations.
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's Return On Assets of 8.11% is fine compared to the rest of the industry. JHX outperforms 61.54% of its industry peers.
The Return On Equity of JHX (19.62%) is better than 69.23% of its industry peers.
JHX's Return On Invested Capital of 12.97% is fine compared to the rest of the industry. JHX outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for JHX is above the industry average of 10.96%.
| 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 has a Profit Margin (10.93%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of JHX has grown nicely.
JHX's Operating Margin of 22.19% is fine compared to the rest of the industry. JHX outperforms 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 (38.81%) 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 | 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.
The number of shares outstanding for JHX has been reduced compared to 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 4.22 indicates that JHX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.22, JHX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 2.95, JHX belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
JHX has a Debt/Equity ratio of 0.51. This is a neutral value indicating 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 | 4.22 |
ROIC/WACC1.81
WACC7.16%
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 has a Current ratio (2.10) which is in line with its industry peers.
A Quick Ratio of 1.67 indicates that JHX should not have too much problems paying its short term obligations.
JHX has a Quick ratio of 1.67. This is amongst the best in the industry. JHX outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
JHX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.45%.
The Earnings Per Share has been growing by 13.73% on average over the past years. This is quite good.
Looking at the last year, JHX shows a decrease in Revenue. The Revenue has decreased by -1.49% in the last 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)-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
The Earnings Per Share is expected to grow by 15.48% on average over the next years. This is quite good.
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 Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y10.77%
EPS Next 5Y15.48%
Revenue Next Year10.68%
Revenue Next 2Y12.16%
Revenue Next 3Y11.95%
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
The Price/Earnings ratio is 18.08, which indicates a rather expensive current valuation of JHX.
76.92% of the companies in the same industry are more expensive than JHX, based on the Price/Earnings ratio.
JHX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.61, which is the current average of the S&P500 Index.
JHX is valuated rather expensively with a Price/Forward Earnings ratio of 17.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 69.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.13, JHX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 17.01 |
4.2 Price Multiples
84.62% of the companies in the same industry are more expensive than JHX, based on the Enterprise Value to EBITDA ratio.
84.62% of the companies in the same industry are more expensive than JHX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.43 | ||
| EV/EBITDA | 11.28 |
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.
The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)1.32
EPS Next 2Y11.95%
EPS Next 3Y10.77%
5. Dividend
5.1 Amount
JHX has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.43, 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 2.32.
| 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 3Y10.77%
26.94
-0.36 (-1.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change-0.01%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap11.58B
Analysts73.75
Price Target29.54 (9.65%)
Short Float %2.04%
Short Ratio1.3
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)1.25%
PT rev (3m)-6.51%
EPS NQ rev (1m)-1.87%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.08 | ||
| Fwd PE | 17.01 | ||
| P/S | 2.99 | ||
| P/FCF | 30.43 | ||
| P/OCF | 14.43 | ||
| P/B | 5.36 | ||
| P/tB | 6.36 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)1.49
EY5.53%
EPS(NY)1.58
Fwd EY5.88%
FCF(TTM)0.89
FCFY3.29%
OCF(TTM)1.87
OCFY6.93%
SpS9.02
BVpS5.03
TBVpS4.24
PEG (NY)2.95
PEG (5Y)1.32
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 | 4.22 |
F-Score6
WACC7.16%
ROIC/WACC1.81
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 3Y10.77%
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%