JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - NYSE:JHX - US47030M1062 - Common Stock
22.41 USD
+0.97 (+4.52%)
22.41 USD
0 (0%)
JHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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.
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 4.88% is on the low side compared to the rest of the industry. JHX is outperformed by 69.23% of its industry peers.
Looking at the Return On Equity, with a value of 14.68%, JHX is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for JHX is above the industry average of 10.33%.
The last Return On Invested Capital (8.90%) 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 | 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 76.92% 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.
JHX has a better Gross Margin (38.17%) 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.
The number of shares outstanding for JHX has been reduced compared to 1 year ago.
Compared to 5 years ago, JHX has less shares outstanding
Compared to 1 year ago, JHX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.94 indicates that JHX is not a great score, but indicates only limited risk for bankruptcy at the moment.
JHX has a Altman-Z score of 2.94. This is comparable to the rest of the industry: JHX outperforms 53.85% of its industry peers.
JHX has a debt to FCF ratio of 5.89. This is a neutral value as JHX would need 5.89 years to pay back of all of its debts.
JHX has a Debt to FCF ratio of 5.89. This is in the better half of the industry: JHX outperforms 69.23% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that JHX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.12, JHX is doing worse than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 2.94 |
ROIC/WACC1.24
WACC7.17%
2.3 Liquidity
A Current Ratio of 3.76 indicates that JHX has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.76, JHX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Quick Ratio of 3.31 indicates that JHX has no problem at all paying its short term obligations.
JHX has a Quick ratio of 3.31. This is amongst the best in 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
The earnings per share for JHX have decreased strongly by -15.95% 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 decrease in Revenue. The Revenue has decreased by -4.74% in the last year.
The Revenue has been growing by 8.27% on average over the past years. This is quite good.
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
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
JHX is valuated correctly with a Price/Earnings ratio of 16.36.
Based on the Price/Earnings ratio, JHX is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.34. JHX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.68, the valuation of JHX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as JHX.
The average S&P500 Price/Forward Earnings ratio is at 22.86. JHX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 69.23% of the companies listed in the same industry.
100.00% 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 | 22.45 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
JHX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as JHX's earnings are expected to decrease with -2.13% in the coming years.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-12.72%
EPS Next 3Y-2.13%
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.
Compared to an average industry Dividend Yield of 4.27, JHX pays a better dividend. On top of this JHX pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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-12.72%
EPS Next 3Y-2.13%
22.41
+0.97 (+4.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners54.42%
Inst Owner Change0.69%
Ins Owners0.36%
Ins Owner ChangeN/A
Market Cap9.63B
Analysts71.76
Price Target23.83 (6.34%)
Short Float %23.52%
Short Ratio1.79
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)9.39%
PT rev (3m)-18.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.86%
EPS NY rev (1m)-12.39%
EPS NY rev (3m)-45.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)21.38%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 19.68 | ||
| P/S | 2.54 | ||
| P/FCF | 22.45 | ||
| P/OCF | 11.68 | ||
| P/B | 4.27 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)1.37
EY6.11%
EPS(NY)1.14
Fwd EY5.08%
FCF(TTM)1
FCFY4.45%
OCF(TTM)1.92
OCFY8.56%
SpS8.81
BVpS5.25
TBVpS4.4
PEG (NY)N/A
PEG (5Y)1.19
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 | 2.94 |
F-Score4
WACC7.17%
ROIC/WACC1.24
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%