JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JHX - US47030M1062 - Common Stock
21.01 USD
-0.03 (-0.14%)
21.04 USD
+0.03 (+0.14%)
Taking everything into account, JHX scores 5 out of 10 in our fundamental rating. JHX was compared to 13 industry peers in the Construction Materials industry. While JHX is still in line with the averages on profitability rating, there are concerns on its financial health. JHX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
JHX had positive earnings in the past year.
JHX had a positive operating cash flow in the past year.
In the past 5 years JHX has always been profitable.
Each year in the past 5 years JHX had a positive operating cash flow.
1.2 Ratios
JHX's Return On Assets of 1.37% is on the low side compared to the rest of the industry. JHX is outperformed by 84.62% of its industry peers.
The Return On Equity of JHX (3.04%) is worse than 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.80%, JHX is doing worse than 84.62% 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 9.37%.
The last Return On Invested Capital (3.80%) 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 | 1.37% | ||
| ROE | 3.04% | ||
| ROIC | 3.8% |
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
With a Profit Margin value of 4.67%, JHX is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of JHX has grown nicely.
JHX has a Operating Margin of 17.93%. This is in the better half of the industry: JHX outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of JHX has grown nicely.
Looking at the Gross Margin, with a value of 36.27%, JHX belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Gross Margin of JHX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.93% | ||
| PM (TTM) | 4.67% | ||
| GM | 36.27% |
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.
JHX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, JHX has less shares outstanding
The debt/assets ratio for JHX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that JHX is in the distress zone and has some risk of bankruptcy.
JHX has a worse Altman-Z score (1.42) than 69.23% of its industry peers.
JHX has a debt to FCF ratio of 17.06. This is a negative value and a sign of low solvency as JHX would need 17.06 years to pay back of all of its debts.
The Debt to FCF ratio of JHX (17.06) is worse than 61.54% of its industry peers.
JHX has a Debt/Equity ratio of 0.80. This is a neutral value indicating JHX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, JHX is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 17.06 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.53
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.79 indicates that JHX should not have too much problems paying its short term obligations.
JHX has a Current ratio (1.79) which is in line with its industry peers.
A Quick Ratio of 1.23 indicates that JHX should not have too much problems paying its short term obligations.
The Quick ratio of JHX (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
JHX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.62%.
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 small growth in Revenue. The Revenue has grown by 4.60% 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)-19.62%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-27.78%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%34.49%
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 8.91% yearly.
Based on estimates for the next years, JHX will show a quite strong growth in Revenue. The Revenue will grow by 13.86% on average per year.
EPS Next Y-30.56%
EPS Next 2Y-8.76%
EPS Next 3Y2.2%
EPS Next 5Y8.91%
Revenue Next Year22.84%
Revenue Next 2Y19.02%
Revenue Next 3Y15.96%
Revenue Next 5Y13.86%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.29, which indicates a correct valuation of JHX.
92.31% 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 (26.84), we can say JHX is valued rather cheaply.
A Price/Forward Earnings ratio of 12.61 indicates a correct valuation of JHX.
Based on the Price/Forward Earnings ratio, JHX is valued cheaper than 92.31% of the companies in the same industry.
JHX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
JHX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, JHX is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.11 | ||
| EV/EBITDA | 13.13 |
4.3 Compensation for Growth
The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-8.76%
EPS Next 3Y2.2%
5. Dividend
5.1 Amount
JHX has a Yearly Dividend Yield of 2.07%.
Compared to an average industry Dividend Yield of 2.15, 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 2.00.
| 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 2Y-8.76%
EPS Next 3Y2.2%
21.01
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners50.04%
Inst Owner Change92.41%
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap9.03B
Revenue(TTM)4.12B
Net Income(TTM)192.10M
Analysts78.82
Price Target25.65 (22.08%)
Short Float %27.9%
Short Ratio2.71
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)-5.28%
Min EPS beat(2)-13.86%
Max EPS beat(2)3.3%
EPS beat(4)2
Avg EPS beat(4)-2.58%
Min EPS beat(4)-13.86%
Max EPS beat(4)3.3%
EPS beat(8)5
Avg EPS beat(8)-0.42%
EPS beat(12)7
Avg EPS beat(12)-0.62%
EPS beat(16)7
Avg EPS beat(16)-1.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.74%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)-0.37%
Revenue beat(8)1
Avg Revenue beat(8)-1.96%
Revenue beat(12)4
Avg Revenue beat(12)-1.54%
Revenue beat(16)6
Avg Revenue beat(16)-1.27%
PT rev (1m)2.92%
PT rev (3m)7.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)46.57%
EPS NY rev (1m)12.95%
EPS NY rev (3m)61.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)6.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 12.61 | ||
| P/S | 2.19 | ||
| P/FCF | 30.11 | ||
| P/OCF | 13.04 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.13 |
EPS(TTM)1.71
EY8.14%
EPS(NY)1.67
Fwd EY7.93%
FCF(TTM)0.7
FCFY3.32%
OCF(TTM)1.61
OCFY7.67%
SpS9.58
BVpS14.71
TBVpS-4.76
PEG (NY)N/A
PEG (5Y)0.89
Graham Number23.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 3.04% | ||
| ROCE | 5.7% | ||
| ROIC | 3.8% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 12.29% | ||
| OM | 17.93% | ||
| PM (TTM) | 4.67% | ||
| GM | 36.27% | ||
| FCFM | 7.28% |
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%
ROICexgc growth 3Y-3.58%
ROICexgc 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-Score3
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 17.06 | ||
| Debt/EBITDA | 4.9 | ||
| Cap/Depr | 132.11% | ||
| Cap/Sales | 9.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.91% | ||
| Profit Quality | 156.12% | ||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 1.42 |
F-Score3
WACC7.12%
ROIC/WACC0.53
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)-19.62%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-27.78%
EPS Next Y-30.56%
EPS Next 2Y-8.76%
EPS Next 3Y2.2%
EPS Next 5Y8.91%
Revenue 1Y (TTM)4.6%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%34.49%
Revenue Next Year22.84%
Revenue Next 2Y19.02%
Revenue Next 3Y15.96%
Revenue Next 5Y13.86%
EBIT growth 1Y-19.01%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year40.9%
EBIT Next 3Y26.66%
EBIT Next 5Y24.03%
FCF growth 1Y4.02%
FCF growth 3Y-8.66%
FCF growth 5Y8.14%
OCF growth 1Y-13.63%
OCF growth 3Y1.97%
OCF growth 5Y12.21%
JAMES HARDIE IND PLC / JHX FAQ
Can you provide the ChartMill fundamental rating for JAMES HARDIE IND PLC?
ChartMill assigns a fundamental rating of 5 / 10 to JHX.
What is the valuation status for JHX stock?
ChartMill assigns a valuation rating of 6 / 10 to JAMES HARDIE IND PLC (JHX). This can be considered as Fairly Valued.
Can you provide the profitability details for JAMES HARDIE IND PLC?
JAMES HARDIE IND PLC (JHX) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for JHX stock?
The Price/Earnings (PE) ratio for JAMES HARDIE IND PLC (JHX) is 12.29 and the Price/Book (PB) ratio is 1.43.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 3 / 10.