JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - NYSE:JHX - US47030M1062 - Common Stock
19.99 USD
-0.02 (-0.1%)
20.1654 USD
+0.18 (+0.88%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. JHX has a correct valuation and a medium growth rate. These ratings would make JHX suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year JHX was profitable.
In the past year JHX had a positive cash flow from operations.
Each year in the past 5 years JHX has 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 4.88% is on the low side compared to the rest of the industry. JHX is outperformed by 76.92% of its industry peers.
JHX has a Return On Equity (14.68%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 8.90%, JHX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
JHX had an Average Return On Invested Capital over the past 3 years of 13.97%. This is above the industry average of 10.47%.
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
JHX has a Profit Margin of 8.75%. This is in the lower half of the industry: JHX underperforms 76.92% of its industry peers.
JHX's Profit Margin has improved in the last couple of years.
The Operating Margin of JHX (20.97%) is better than 76.92% of its industry peers.
JHX's Operating Margin has improved in the last couple of years.
The Gross Margin of JHX (38.17%) is better 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 | 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
JHX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, JHX has less shares outstanding
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
An Altman-Z score of 2.86 indicates that JHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
JHX's Altman-Z score of 2.86 is in line compared to the rest of the industry. JHX outperforms 53.85% of its industry peers.
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.
JHX's Debt to FCF ratio of 5.89 is fine compared to the rest of the industry. JHX outperforms 61.54% 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's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. JHX is outperformed by 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.86 |
ROIC/WACC1.26
WACC7.06%
2.3 Liquidity
A Current Ratio of 3.76 indicates that JHX has no problem at all paying 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.
A Quick Ratio of 3.31 indicates that JHX has no problem at all paying its short term obligations.
JHX has a better Quick ratio (3.31) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.76 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
The earnings per share for JHX have decreased strongly by -15.95% in the last year.
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 decrease in Revenue. The Revenue has decreased by -4.74% 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)-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
JHX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.52% yearly.
JHX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.47% yearly.
EPS Next Y-34.23%
EPS Next 2Y-8.35%
EPS Next 3Y-2.06%
EPS Next 5Y11.52%
Revenue Next Year14.98%
Revenue Next 2Y16.21%
Revenue Next 3Y14.55%
Revenue Next 5Y14.47%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 14.59 indicates a correct valuation of JHX.
Compared to the rest of the industry, the Price/Earnings ratio of JHX indicates a rather cheap valuation: JHX is cheaper than 84.62% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (27.30), we can say JHX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.92, JHX is valued correctly.
JHX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JHX is cheaper than 76.92% of the companies in the same industry.
JHX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 15.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JHX indicates a rather cheap valuation: JHX is cheaper than 84.62% 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 rather cheap valuation: JHX is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.03 | ||
| EV/EBITDA | 10.55 |
4.3 Compensation for Growth
The decent profitability rating of JHX may justify a higher PE ratio.
A cheap valuation may be justified as JHX's earnings are expected to decrease with -2.06% in the coming years.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y-8.35%
EPS Next 3Y-2.06%
5. Dividend
5.1 Amount
JHX has a Yearly Dividend Yield of 2.07%.
In the last 3 months the price of JHX has falen by -23.91%. 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 4.11. JHX pays more dividend than 92.31% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, JHX has a dividend comparable with the average S&P500 company.
| 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-8.35%
EPS Next 3Y-2.06%
19.99
-0.02 (-0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change198.7%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap8.59B
Analysts71.76
Price Target23.93 (19.71%)
Short Float %12.84%
Short Ratio0.88
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)-19.24%
PT rev (3m)-18.48%
EPS NQ rev (1m)-31.55%
EPS NQ rev (3m)-41.47%
EPS NY rev (1m)-37.96%
EPS NY rev (3m)-37.96%
Revenue NQ rev (1m)1.96%
Revenue NQ rev (3m)17.4%
Revenue NY rev (1m)1.92%
Revenue NY rev (3m)3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.59 | ||
| Fwd PE | 15.92 | ||
| P/S | 2.27 | ||
| P/FCF | 20.03 | ||
| P/OCF | 10.42 | ||
| P/B | 3.81 | ||
| P/tB | 4.54 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)1.37
EY6.85%
EPS(NY)1.26
Fwd EY6.28%
FCF(TTM)1
FCFY4.99%
OCF(TTM)1.92
OCFY9.6%
SpS8.81
BVpS5.25
TBVpS4.4
PEG (NY)N/A
PEG (5Y)1.06
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%
ROICexcg growth 3Y-3.58%
ROICexcg 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 | 2.86 |
F-Score4
WACC7.06%
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-34.23%
EPS Next 2Y-8.35%
EPS Next 3Y-2.06%
EPS Next 5Y11.52%
Revenue 1Y (TTM)-4.74%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-9.28%
Revenue Next Year14.98%
Revenue Next 2Y16.21%
Revenue Next 3Y14.55%
Revenue Next 5Y14.47%
EBIT growth 1Y-15.63%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year36.44%
EBIT Next 3Y23.74%
EBIT Next 5Y24.65%
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%