JAMES HARDIE IND PLC-SP ADR (JHX) Stock Fundamental Analysis
NYSE:JHX - New York Stock Exchange, Inc. - US47030M1062 - ADR - Currency: USD
JHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Construction Materials industry. JHX has an excellent financial health rating, but there are some minor concerns on its profitability. JHX has a decent growth rate and is not valued too expensively.
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.
JHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.88%, JHX is in line with its industry, outperforming 41.67% of the companies in the same industry.
JHX has a Return On Equity (20.76%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 14.47%, JHX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
JHX had an Average Return On Invested Capital over the past 3 years of 15.42%. This is below the industry average of 20.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.88% | ||
| ROE | 20.76% | ||
| ROIC | 14.47% |
ROA(3y)10.88%
ROA(5y)9.01%
ROE(3y)31.22%
ROE(5y)28.35%
ROIC(3y)15.42%
ROIC(5y)13.9%
1.3 Margins
JHX's Profit Margin of 11.15% is in line compared to the rest of the industry. JHX outperforms 50.00% of its industry peers.
JHX's Profit Margin has improved in the last couple of years.
JHX has a better Operating Margin (22.60%) than 75.00% of its industry peers.
JHX's Operating Margin has improved in the last couple of years.
JHX's Gross Margin of 39.45% is amongst the best of the industry. JHX outperforms 91.67% of its industry peers.
JHX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.6% | ||
| PM (TTM) | 11.15% | ||
| GM | 39.45% |
OM growth 3Y3.29%
OM growth 5Y8.96%
PM growth 3Y12.78%
PM growth 5Y7.26%
GM growth 3Y3.66%
GM growth 5Y4.01%
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.
The debt/assets ratio for JHX has been reduced compared to a year ago.
2.2 Solvency
JHX has an Altman-Z score of 4.13. This indicates that JHX is financially healthy and has little risk of bankruptcy at the moment.
JHX has a better Altman-Z score (4.13) than 66.67% of its industry peers.
The Debt to FCF ratio of JHX is 3.00, which is a good value as it means it would take JHX, 3.00 years of fcf income to pay off all of its debts.
JHX's Debt to FCF ratio of 3.00 is fine compared to the rest of the industry. JHX outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that JHX is somewhat dependend on debt financing.
JHX's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. JHX is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3 | ||
| Altman-Z | 4.13 |
ROIC/WACC2.1
WACC6.88%
2.3 Liquidity
JHX has a Current Ratio of 2.18. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
JHX has a Current ratio (2.18) which is comparable to the rest of the industry.
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.
The Quick ratio of JHX (1.67) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| 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 -0.65%.
The Earnings Per Share has been growing by 18.85% on average over the past years. This is quite good.
Looking at the last year, JHX shows a small growth in Revenue. The Revenue has grown by 1.60% in the last year.
The Revenue has been growing by 9.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.65%
EPS 3Y16.09%
EPS 5Y18.85%
EPS Q2Q%-12.2%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y10.61%
Revenue growth 5Y9.45%
Sales Q2Q%-2.56%
3.2 Future
The Earnings Per Share is expected to grow by 11.69% on average over the next years. This is quite good.
Based on estimates for the next years, JHX will show a small growth in Revenue. The Revenue will grow by 7.16% on average per year.
EPS Next Y-6.35%
EPS Next 2Y0.53%
EPS Next 3Y5.52%
EPS Next 5Y11.69%
Revenue Next Year-1.65%
Revenue Next 2Y2.46%
Revenue Next 3Y5.14%
Revenue Next 5Y7.16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.69, which indicates a correct valuation of JHX.
75.00% of the companies in the same industry are more expensive than JHX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (28.29), we can say JHX is valued slightly cheaper.
JHX is valuated correctly with a Price/Forward Earnings ratio of 13.78.
Based on the Price/Forward Earnings ratio, JHX is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, JHX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.78 |
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 75.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.26 | ||
| EV/EBITDA | 9.39 |
4.3 Compensation for Growth
The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y0.53%
EPS Next 3Y5.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, JHX has a reasonable but not impressive dividend return.
The stock price of JHX dropped by -33.55% 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.
Compared to an average industry Dividend Yield of 7.70, JHX pays a better dividend. On top of this JHX pays more dividend than 91.67% of the companies listed in the same industry.
JHX's Dividend Yield is comparable with the S&P500 average which is at 2.52.
| 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 2Y0.53%
EPS Next 3Y5.52%
22.48
+0.99 (+4.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.39%
Inst Owner Change0.08%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap9.66B
Analysts73.75
Price Target30.93 (37.59%)
Short Float %0.01%
Short Ratio0.43
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)2
Avg EPS beat(2)4.29%
Min EPS beat(2)2.25%
Max EPS beat(2)6.34%
EPS beat(4)3
Avg EPS beat(4)1.66%
Min EPS beat(4)-5.65%
Max EPS beat(4)6.34%
EPS beat(8)6
Avg EPS beat(8)3.03%
EPS beat(12)6
Avg EPS beat(12)-0.65%
EPS beat(16)8
Avg EPS beat(16)-0.89%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)-1.38%
Revenue beat(8)4
Avg Revenue beat(8)-0.27%
Revenue beat(12)6
Avg Revenue beat(12)-0.94%
Revenue beat(16)9
Avg Revenue beat(16)-0.32%
PT rev (1m)-12.55%
PT rev (3m)-13.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)1.69%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 13.78 | ||
| P/S | 2.47 | ||
| P/FCF | 26.26 | ||
| P/OCF | 11.75 | ||
| P/B | 4.6 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)1.53
EY6.81%
EPS(NY)1.63
Fwd EY7.26%
FCF(TTM)0.86
FCFY3.81%
OCF(TTM)1.91
OCFY8.51%
SpS9.1
BVpS4.89
TBVpS4.13
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.88% | ||
| ROE | 20.76% | ||
| ROCE | 20.92% | ||
| ROIC | 14.47% | ||
| ROICexc | 16.59% | ||
| ROICexgc | 18.21% | ||
| OM | 22.6% | ||
| PM (TTM) | 11.15% | ||
| GM | 39.45% | ||
| FCFM | 9.41% |
ROA(3y)10.88%
ROA(5y)9.01%
ROE(3y)31.22%
ROE(5y)28.35%
ROIC(3y)15.42%
ROIC(5y)13.9%
ROICexc(3y)16.28%
ROICexc(5y)14.69%
ROICexgc(3y)18.06%
ROICexgc(5y)16.43%
ROCE(3y)22.29%
ROCE(5y)20.1%
ROICexcg growth 3Y4.34%
ROICexcg growth 5Y16.97%
ROICexc growth 3Y5.82%
ROICexc growth 5Y17.42%
OM growth 3Y3.29%
OM growth 5Y8.96%
PM growth 3Y12.78%
PM growth 5Y7.26%
GM growth 3Y3.66%
GM growth 5Y4.01%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 221.4% | ||
| Cap/Sales | 11.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.51% | ||
| Profit Quality | 84.4% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 4.13 |
F-Score7
WACC6.88%
ROIC/WACC2.1
Cap/Depr(3y)248.26%
Cap/Depr(5y)194.83%
Cap/Sales(3y)11.4%
Cap/Sales(5y)9.09%
Profit Quality(3y)67.69%
Profit Quality(5y)113.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.65%
EPS 3Y16.09%
EPS 5Y18.85%
EPS Q2Q%-12.2%
EPS Next Y-6.35%
EPS Next 2Y0.53%
EPS Next 3Y5.52%
EPS Next 5Y11.69%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y10.61%
Revenue growth 5Y9.45%
Sales Q2Q%-2.56%
Revenue Next Year-1.65%
Revenue Next 2Y2.46%
Revenue Next 3Y5.14%
Revenue Next 5Y7.16%
EBIT growth 1Y-1.19%
EBIT growth 3Y14.25%
EBIT growth 5Y19.25%
EBIT Next Year14.27%
EBIT Next 3Y13.31%
EBIT Next 5Y13.95%
FCF growth 1Y260.78%
FCF growth 3Y-11.74%
FCF growth 5YN/A
OCF growth 1Y29.26%
OCF growth 3Y5.13%
OCF growth 5Y24.63%