JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - NYSE:JHX - US47030M1062 - Common Stock
17.39 USD
+0.05 (+0.29%)
17.31 USD
-0.08 (-0.46%)
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 has a decent growth rate and is not valued too expensively. With these ratings, JHX could be worth investigating further for quality investing!.
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.
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
JHX has a Return On Assets of 4.88%. This is in the lower half of the industry: JHX underperforms 61.54% of its industry peers.
The Return On Equity of JHX (14.68%) is better than 61.54% of its industry peers.
JHX has a Return On Invested Capital of 8.90%. This is in the better half of the industry: JHX outperforms 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JHX is above the industry average of 10.40%.
The 3 year average ROIC (13.97%) for JHX is well above the current ROIC(8.90%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 14.68% | ||
| ROIC | 8.9% |
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
The Profit Margin of JHX (8.75%) is worse than 69.23% of its industry peers.
JHX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.97%, JHX is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
JHX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 38.17%, JHX belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
JHX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.97% | ||
| PM (TTM) | 8.75% | ||
| GM | 38.17% |
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.
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.
JHX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 indicates that JHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
JHX has a Altman-Z score (2.71) which is comparable to the rest of the industry.
The Debt to FCF ratio of JHX is 5.89, which is a neutral value as it means it would take JHX, 5.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JHX (5.89) is better than 69.23% of its industry peers.
JHX has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
JHX has a Debt to Equity ratio of 1.12. This is amonst the worse of the industry: JHX underperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.26
WACC7.09%
2.3 Liquidity
JHX has a Current Ratio of 3.76. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
JHX has a Current ratio of 3.76. This is amongst the best in the industry. JHX outperforms 92.31% of its industry peers.
JHX has a Quick Ratio of 3.31. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
JHX's Quick ratio of 3.31 is amongst the best of the industry. JHX outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
JHX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.95%.
The Earnings Per Share has been growing by 13.73% on average over the past years. This is quite good.
JHX shows a decrease in Revenue. In the last year, the revenue decreased by -4.74%.
JHX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.27% yearly.
EPS 1Y (TTM)-15.95%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-29.27%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
3.2 Future
The Earnings Per Share is expected to grow by 13.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.76% on average over the next years. This is quite good.
EPS Next Y-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
EPS Next 5Y13.43%
Revenue Next Year14.93%
Revenue Next 2Y16.29%
Revenue Next 3Y15.12%
Revenue Next 5Y13.76%
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.
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
Based on the Price/Earnings ratio of 12.69, the valuation of JHX can be described as correct.
JHX's Price/Earnings ratio is rather cheap when compared to the industry. JHX is cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (25.83), we can say JHX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 15.28, the valuation of JHX can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 76.92% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of JHX to the average of the S&P500 Index (32.68), we can say JHX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 15.28 |
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.
JHX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. JHX is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.42 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
JHX has a very decent profitability rating, which may justify a higher PE ratio.
JHX's earnings are expected to decrease with -2.13% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, JHX has a reasonable but not impressive dividend return.
In the last 3 months the price of JHX has falen by -38.36%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
JHX's Dividend Yield is rather good when compared to the industry average which is at 3.90. JHX pays more dividend than 92.31% of the companies in the same industry.
JHX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| 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-12.72%
EPS Next 3Y-2.13%
17.39
+0.05 (+0.29%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change4.73%
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap7.48B
Revenue(TTM)3.79B
Net Income(TTM)331.30M
Analysts71.76
Price Target24.81 (42.67%)
Short Float %31.66%
Short Ratio2.22
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)0
Avg EPS beat(2)-7.94%
Min EPS beat(2)-13.86%
Max EPS beat(2)-2.01%
EPS beat(4)2
Avg EPS beat(4)-1.82%
Min EPS beat(4)-13.86%
Max EPS beat(4)6.34%
EPS beat(8)4
Avg EPS beat(8)-0.94%
EPS beat(12)6
Avg EPS beat(12)-1.29%
EPS beat(16)7
Avg EPS beat(16)-1.79%
Revenue beat(2)0
Avg Revenue beat(2)-4.31%
Min Revenue beat(2)-7.1%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-7.1%
Max Revenue beat(4)-1.51%
Revenue beat(8)2
Avg Revenue beat(8)-1.76%
Revenue beat(12)4
Avg Revenue beat(12)-2.04%
Revenue beat(16)7
Avg Revenue beat(16)-1.22%
PT rev (1m)3.7%
PT rev (3m)-16.01%
EPS NQ rev (1m)5.59%
EPS NQ rev (3m)-29.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-45.64%
Revenue NQ rev (1m)8.88%
Revenue NQ rev (3m)21.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 15.28 | ||
| P/S | 1.97 | ||
| P/FCF | 17.42 | ||
| P/OCF | 9.07 | ||
| P/B | 3.31 | ||
| P/tB | 3.95 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)1.37
EY7.88%
EPS(NY)1.14
Fwd EY6.55%
FCF(TTM)1
FCFY5.74%
OCF(TTM)1.92
OCFY11.03%
SpS8.81
BVpS5.25
TBVpS4.4
PEG (NY)N/A
PEG (5Y)0.92
Graham Number12.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.88% | ||
| ROE | 14.68% | ||
| ROCE | 13.36% | ||
| ROIC | 8.9% | ||
| ROICexc | 9.53% | ||
| ROICexgc | 10.2% | ||
| OM | 20.97% | ||
| PM (TTM) | 8.75% | ||
| GM | 38.17% | ||
| FCFM | 11.33% |
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-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 177.48% | ||
| Cap/Sales | 10.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.11% | ||
| Profit Quality | 129.49% | ||
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.31 | ||
| Altman-Z | 2.71 |
F-Score4
WACC7.09%
ROIC/WACC1.26
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)-15.95%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-29.27%
EPS Next Y-42.38%
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
EPS Next 5Y13.43%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
Revenue Next Year14.93%
Revenue Next 2Y16.29%
Revenue Next 3Y15.12%
Revenue Next 5Y13.76%
EBIT growth 1Y-15.63%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year28.33%
EBIT Next 3Y23.57%
EBIT Next 5Y24%
FCF growth 1Y162.39%
FCF growth 3Y-8.66%
FCF growth 5Y8.14%
OCF growth 1Y16.75%
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 6 / 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 7 / 10.
Can you provide the PE and PB ratios for JHX stock?
The Price/Earnings (PE) ratio for JAMES HARDIE IND PLC (JHX) is 12.69 and the Price/Book (PB) ratio is 3.31.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 7 / 10.