JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JHX - US47030M1062 - Common Stock
24.51 USD
-0.03 (-0.12%)
24.51 USD
0 (0%)
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. There are concerns on the financial health of JHX while its profitability can be described as average. JHX has a correct valuation and a medium growth rate.
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 has a worse Return On Assets (1.37%) than 84.62% of its industry peers.
- JHX's Return On Equity of 3.04% is on the low side compared to the rest of the industry. JHX is outperformed by 84.62% of its industry peers.
- JHX's Return On Invested Capital of 3.80% is on the low side compared to the rest of the industry. JHX is outperformed by 84.62% of its industry peers.
- JHX had an Average Return On Invested Capital over the past 3 years of 13.97%. This 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
- JHX's Profit Margin of 4.67% is on the low side compared to the rest of the industry. JHX is outperformed by 84.62% of its industry peers.
- In the last couple of years the Profit Margin of JHX has grown nicely.
- With a decent Operating Margin value of 17.93%, JHX is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- In the last couple of years the Operating Margin of JHX has grown nicely.
- JHX has a better Gross Margin (36.27%) than 92.31% of its industry peers.
- JHX's Gross Margin has improved in the last couple of years.
| 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.
- 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
- JHX has an Altman-Z score of 1.53. This is a bad value and indicates that JHX is not financially healthy and even has some risk of bankruptcy.
- JHX has a Altman-Z score of 1.53. This is in the lower half of the industry: JHX underperforms 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.
- With a Debt to FCF ratio value of 17.06, JHX is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
- JHX has a Debt/Equity ratio of 0.80. This is a neutral value indicating JHX is somewhat dependend on debt financing.
- JHX has a Debt to Equity ratio of 0.80. This is amonst the worse of the industry: JHX underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 17.06 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.52
WACC7.28%
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.
- JHX has a Quick Ratio of 1.23. This is a normal value and indicates that JHX is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.23, JHX perfoms like the industry average, outperforming 53.85% of the companies in the same 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.
- JHX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.86% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- With a Price/Earnings ratio of 14.33, JHX is valued correctly.
- JHX's Price/Earnings ratio is rather cheap when compared to the industry. JHX is cheaper than 92.31% of the companies in the same industry.
- JHX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- JHX is valuated correctly with a Price/Forward Earnings ratio of 14.71.
- JHX's Price/Forward Earnings ratio is rather cheap when compared to the industry. JHX is cheaper than 84.62% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. JHX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 14.71 |
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 a bit cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.13 | ||
| EV/EBITDA | 14.58 |
4.3 Compensation for Growth
- The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-8.76%
EPS Next 3Y2.2%
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.
- JHX's Dividend Yield is rather good when compared to the industry average which is at 2.08. JHX pays more dividend than 92.31% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 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-8.76%
EPS Next 3Y2.2%
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 of JAMES HARDIE IND PLC (JHX) stock?
ChartMill assigns a valuation rating of 5 / 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 14.33 and the Price/Book (PB) ratio is 1.67.
What is the earnings growth outlook for JAMES HARDIE IND PLC?
The Earnings per Share (EPS) of JAMES HARDIE IND PLC (JHX) is expected to decline by -30.56% in the next year.