JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JHX - US47030M1062 - Common Stock
20.86 USD
-0.15 (-0.71%)
20.76 USD
-0.1 (-0.48%)
Taking everything into account, JHX scores 5 out of 10 in our fundamental rating. JHX was compared to 13 industry peers in the Construction Materials industry. While JHX is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
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
The Return On Assets of JHX (1.37%) is worse than 84.62% of its industry peers.
JHX has a worse Return On Equity (3.04%) than 84.62% of its industry peers.
JHX has a Return On Invested Capital of 3.80%. This is amonst the worse of the industry: JHX underperforms 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for JHX 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 has a worse Profit Margin (4.67%) than 84.62% of its industry peers.
In the last couple of years the Profit Margin of JHX has grown nicely.
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.
Compared to 1 year ago, JHX has less shares outstanding
Compared to 5 years ago, JHX has less shares outstanding
The debt/assets ratio for JHX has been reduced compared to a year ago.
2.2 Solvency
JHX has an Altman-Z score of 1.41. This is a bad value and indicates that JHX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, JHX is doing worse than 69.23% of the companies in the same industry.
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.
JHX's Debt to FCF ratio of 17.06 is on the low side compared to the rest of the industry. JHX is outperformed by 61.54% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that JHX is somewhat dependend on debt financing.
JHX has a Debt to Equity ratio of 0.80. This is amonst the worse of the industry: JHX underperforms 84.62% of its industry peers.
| 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 of 1.79. This is comparable to the rest of the industry: JHX outperforms 46.15% of its industry peers.
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 in line with its industry peers.
| 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.
The Earnings Per Share has been growing by 13.73% on average over the past years. This is quite good.
JHX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
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.
The Revenue is expected to grow by 13.86% on average over the next years. This is quite good.
EPS Next Y-30.56%
EPS Next 2Y-8.76%
EPS Next 3Y2.2%
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
With a Price/Earnings ratio of 12.20, JHX is valued correctly.
Based on the Price/Earnings ratio, JHX is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (26.77), we can say JHX is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.52, JHX is valued correctly.
Based on the Price/Forward Earnings ratio, JHX is valued cheaper than 92.31% of the companies in the same industry.
JHX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
JHX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of JHX indicates a rather cheap valuation: JHX is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.9 | ||
| EV/EBITDA | 13.06 |
4.3 Compensation for Growth
JHX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-8.76%
EPS Next 3Y2.2%
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 2.15, 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 2.00.
| 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-8.76%
EPS Next 3Y2.2%
20.86
-0.15 (-0.71%)
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 Cap8.97B
Revenue(TTM)4.12B
Net Income(TTM)192.10M
Analysts78.82
Price Target25.65 (22.96%)
Short Float %25.09%
Short Ratio2.62
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)2.92%
PT rev (3m)7.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)46.57%
EPS NY rev (1m)12.95%
EPS NY rev (3m)61.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)2.33%
Revenue NY rev (3m)6.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.2 | ||
| Fwd PE | 12.52 | ||
| P/S | 2.18 | ||
| P/FCF | 29.9 | ||
| P/OCF | 12.94 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.06 |
EPS(TTM)1.71
EY8.2%
EPS(NY)1.67
Fwd EY7.99%
FCF(TTM)0.7
FCFY3.34%
OCF(TTM)1.61
OCFY7.73%
SpS9.58
BVpS14.71
TBVpS-4.76
PEG (NY)N/A
PEG (5Y)0.89
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-30.56%
EPS Next 2Y-8.76%
EPS Next 3Y2.2%
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 12.2 and the Price/Book (PB) ratio is 1.42.
How financially healthy is JAMES HARDIE IND PLC?
The financial health rating of JAMES HARDIE IND PLC (JHX) is 3 / 10.