Does JAMES HARDIE IND PLC-SP ADR (NYSE:JHX) match Peter Lynch’s “Invest in What You Know” philosophy?

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if JAMES HARDIE IND PLC-SP ADR (NYSE:JHX) fits his winning formula.

Does JAMES HARDIE IND PLC-SP ADR (NYSE:JHX) meet Peter Lynch’s stock-picking criteria?

• With a solid Return on Equity (ROE) of 20.76%, JHX exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• With a Debt/Equity ratio of 0.52, JHX appears to have a manageable debt load relative to its assets.
• Over the past 5 years, JHX has demonstrated 18.85 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio at 0.83, JHX is priced attractively relative to its earnings expansion.
• With a Current Ratio of 2.18, JHX appears well-positioned to meet its near-term financial obligations.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, JHX scores 6 out of 10 in our fundamental rating. JHX was compared to 11 industry peers in the Construction Materials industry. JHX is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. JHX is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of JHX contains the most current fundamental analsysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.