JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JHX - US47030M1062 - Common Stock
23.84 USD
-0.52 (-2.13%)
Overall JHX gets a fundamental rating of 5 out of 10. We evaluated JHX against 13 industry peers in the Construction Materials industry. JHX has a medium profitability rating, but doesn't score so well on its financial health evaluation. JHX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year JHX was profitable.
- JHX had a positive operating cash flow in the past year.
- 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 1.37% is on the low side compared to the rest of the industry. JHX is outperformed by 84.62% of its industry peers.
- Looking at the Return On Equity, with a value of 3.04%, JHX is doing worse than 84.62% of the companies in the same industry.
- 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
- 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.
- JHX's Profit Margin has improved in the last couple of years.
- JHX has a better Operating Margin (17.93%) than 61.54% of its industry peers.
- JHX's Operating Margin has improved in the last couple of years.
- The Gross Margin of JHX (36.27%) 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 | 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
- 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
- JHX has a better debt/assets ratio than last year.
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.
- With a Altman-Z score value of 1.53, JHX is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
- 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.
- 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.
- A Debt/Equity ratio of 0.80 indicates that JHX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.80, JHX is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 17.06 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.52
WACC7.28%
2.3 Liquidity
- JHX has a Current Ratio of 1.79. This is a normal value and indicates that JHX is financially healthy and should not expect problems in meeting its short term obligations.
- JHX's Current ratio of 1.79 is in line compared to the rest of the industry. JHX outperforms 46.15% of 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.
- 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
- 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.
- 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
- The Earnings Per Share is expected to grow by 8.91% on average over the next years. This is quite good.
- 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-30.17%
EPS Next 2Y-8.79%
EPS Next 3Y2.22%
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
- JHX is valuated correctly with a Price/Earnings ratio of 13.94.
- Compared to the rest of the industry, the Price/Earnings ratio of JHX indicates a rather cheap valuation: JHX is cheaper than 92.31% of the companies listed in the same industry.
- JHX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 14.32, the valuation of JHX can be described as correct.
- Based on the Price/Forward Earnings ratio, JHX is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- JHX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as JHX.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.17 | ||
| EV/EBITDA | 14.51 |
4.3 Compensation for Growth
- The decent profitability rating of JHX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y-8.79%
EPS Next 3Y2.22%
5. Dividend
5.1 Amount
- JHX has a Yearly Dividend Yield of 2.07%.
- JHX's Dividend Yield is rather good when compared to the industry average which is at 2.03. 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 1.82.
| 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-8.79%
EPS Next 3Y2.22%
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 13.94 and the Price/Book (PB) ratio is 1.62.
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 -30.17% in the next year.