JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JHX - US47030M1062 - Common Stock
20.78 USD
+0.27 (+1.32%)
20.74 USD
-0.04 (-0.19%)
JHX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
JHX had positive earnings in the past year.
In the past year JHX had a positive cash flow from operations.
In the past 5 years JHX has always been profitable.
In the past 5 years JHX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.37%, JHX is doing worse than 84.62% of the companies in the same industry.
The Return On Equity of JHX (3.04%) is worse than 84.62% of its industry peers.
The Return On Invested Capital of JHX (3.80%) is worse than 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
The Profit Margin of JHX (4.67%) is worse than 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.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JHX is creating value.
Compared to 1 year ago, JHX has less shares outstanding
Compared to 5 years ago, JHX has less shares outstanding
JHX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that JHX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of JHX (1.41) is worse than 69.23% of its industry peers.
The Debt to FCF ratio of JHX is 17.06, which is on the high side as it means it would take JHX, 17.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.06, JHX is doing worse than 61.54% of the companies in the same industry.
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 | 1.41 |
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 comparable to the rest of the industry.
A Quick Ratio of 1.23 indicates that JHX should not have too much problems paying its short term obligations.
JHX has a Quick ratio (1.23) which 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
The earnings per share for JHX have decreased strongly by -19.62% in the last year.
Measured over the past years, JHX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.73% on average per year.
Looking at the last year, JHX shows a small growth in Revenue. The Revenue has grown by 4.60% in the last year.
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)-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-30.86%
EPS Next 2Y-9.25%
EPS Next 3Y1.83%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.15, 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 92.31% of the companies in the same industry.
JHX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.61.
A Price/Forward Earnings ratio of 12.61 indicates a correct valuation of JHX.
JHX's Price/Forward Earnings ratio is rather cheap when compared to the industry. JHX is cheaper than 92.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, JHX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as JHX.
84.62% of the companies in the same industry are more expensive than JHX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.78 | ||
| EV/EBITDA | 13.02 |
4.3 Compensation for Growth
The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y-9.25%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.07%, JHX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.20, 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 1.87.
| 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-9.25%
EPS Next 3Y1.83%
20.78
+0.27 (+1.32%)
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 Cap8.93B
Revenue(TTM)4.12B
Net Income(TTM)192.10M
Analysts78.82
Price Target24.48 (17.81%)
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)-1.78%
PT rev (3m)2.31%
EPS NQ rev (1m)37.65%
EPS NQ rev (3m)46.57%
EPS NY rev (1m)12.46%
EPS NY rev (3m)40.8%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)6.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 12.61 | ||
| P/S | 2.17 | ||
| P/FCF | 29.78 | ||
| P/OCF | 12.89 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.02 |
EPS(TTM)1.71
EY8.23%
EPS(NY)1.65
Fwd EY7.93%
FCF(TTM)0.7
FCFY3.36%
OCF(TTM)1.61
OCFY7.76%
SpS9.58
BVpS14.71
TBVpS-4.76
PEG (NY)N/A
PEG (5Y)0.88
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 | 1.41 |
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-30.86%
EPS Next 2Y-9.25%
EPS Next 3Y1.83%
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 12.15 and the Price/Book (PB) ratio is 1.41.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 3 / 10.