JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
NYSE:JHX - New York Stock Exchange, Inc. - US47030M1062 - Common Stock - Currency: USD
We assign a fundamental rating of 7 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 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
In the past year JHX was profitable.
In the past year JHX had a positive cash flow from operations.
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 8.11% is fine compared to the rest of the industry. JHX outperforms 61.54% of its industry peers.
With a decent Return On Equity value of 19.62%, JHX is doing good in the industry, outperforming 76.92% of the companies in the same industry.
JHX's Return On Invested Capital of 12.97% is amongst the best of the industry. JHX outperforms 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 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 19.62% | ||
| ROIC | 12.97% |
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 10.93%. This is in the better half of the industry: JHX outperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of JHX has grown nicely.
JHX's Operating Margin of 22.19% is fine compared to the rest of the industry. JHX outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of JHX has grown nicely.
With an excellent Gross Margin value of 38.81%, JHX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
JHX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.19% | ||
| PM (TTM) | 10.93% | ||
| GM | 38.81% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so JHX is creating value.
Compared to 1 year ago, JHX has less shares outstanding
JHX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, JHX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.26 indicates that JHX is not in any danger for bankruptcy at the moment.
JHX has a better Altman-Z score (4.26) than 76.92% of its industry peers.
The Debt to FCF ratio of JHX is 2.95, which is a good value as it means it would take JHX, 2.95 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.95, JHX belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
JHX has a Debt/Equity ratio of 0.51. This is a neutral value indicating JHX is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, JHX is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.8
WACC7.2%
2.3 Liquidity
JHX has a Current Ratio of 2.10. This indicates that JHX is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.10, JHX perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
JHX has a Quick Ratio of 1.67. 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 better Quick ratio (1.67) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for JHX have decreased by -7.45% 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 decrease in Revenue. In the last year, the revenue decreased by -1.49%.
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)-7.45%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-10%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-3.32%
3.2 Future
Based on estimates for the next years, JHX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.48% on average per year.
The Revenue is expected to grow by 15.32% on average over the next years. This is quite good.
EPS Next Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y10.77%
EPS Next 5Y15.48%
Revenue Next Year10.68%
Revenue Next 2Y12.16%
Revenue Next 3Y11.95%
Revenue Next 5Y15.32%
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.
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 18.46, the valuation of JHX can be described as rather expensive.
76.92% of the companies in the same industry are more expensive than JHX, based on the Price/Earnings ratio.
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 17.37, JHX is valued on the expensive side.
JHX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. JHX is cheaper than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of JHX to the average of the S&P500 Index (21.76), we can say JHX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 17.37 |
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 76.92% of the companies listed in the same industry.
JHX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. JHX is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.07 | ||
| EV/EBITDA | 11.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
JHX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)1.34
EPS Next 2Y11.95%
EPS Next 3Y10.77%
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.
JHX's Dividend Yield is rather good when compared to the industry average which is at 5.15. 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 2.35.
| 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 2Y11.95%
EPS Next 3Y10.77%
27.51
-0.76 (-2.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners55.56%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap11.83B
Analysts73.75
Price Target29.18 (6.07%)
Short Float %9.17%
Short Ratio8.6
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)0.12%
Min EPS beat(2)-2.01%
Max EPS beat(2)2.25%
EPS beat(4)3
Avg EPS beat(4)2.57%
Min EPS beat(4)-2.01%
Max EPS beat(4)6.34%
EPS beat(8)5
Avg EPS beat(8)2.59%
EPS beat(12)6
Avg EPS beat(12)-0.6%
EPS beat(16)7
Avg EPS beat(16)-1.13%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)-1.51%
Revenue beat(8)3
Avg Revenue beat(8)-0.54%
Revenue beat(12)5
Avg Revenue beat(12)-1.34%
Revenue beat(16)8
Avg Revenue beat(16)-0.53%
PT rev (1m)-0.59%
PT rev (3m)-5.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 17.37 | ||
| P/S | 3.05 | ||
| P/FCF | 31.07 | ||
| P/OCF | 14.73 | ||
| P/B | 5.47 | ||
| P/tB | 6.49 | ||
| EV/EBITDA | 11.51 |
EPS(TTM)1.49
EY5.42%
EPS(NY)1.58
Fwd EY5.76%
FCF(TTM)0.89
FCFY3.22%
OCF(TTM)1.87
OCFY6.79%
SpS9.02
BVpS5.03
TBVpS4.24
PEG (NY)3.01
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.11% | ||
| ROE | 19.62% | ||
| ROCE | 19.47% | ||
| ROIC | 12.97% | ||
| ROICexc | 14.87% | ||
| ROICexgc | 16.3% | ||
| OM | 22.19% | ||
| PM (TTM) | 10.93% | ||
| GM | 38.81% | ||
| FCFM | 9.82% |
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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.95 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 195.28% | ||
| Cap/Sales | 10.89% | ||
| Interest Coverage | 13.53 | ||
| Cash Conversion | 74.58% | ||
| Profit Quality | 89.76% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 4.26 |
F-Score6
WACC7.2%
ROIC/WACC1.8
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)-7.45%
EPS 3Y2.07%
EPS 5Y13.73%
EPS Q2Q%-10%
EPS Next Y6.13%
EPS Next 2Y11.95%
EPS Next 3Y10.77%
EPS Next 5Y15.48%
Revenue 1Y (TTM)-1.49%
Revenue growth 3Y2.37%
Revenue growth 5Y8.27%
Sales Q2Q%-3.32%
Revenue Next Year10.68%
Revenue Next 2Y12.16%
Revenue Next 3Y11.95%
Revenue Next 5Y15.32%
EBIT growth 1Y-8.4%
EBIT growth 3Y1.83%
EBIT growth 5Y12.01%
EBIT Next Year36.44%
EBIT Next 3Y23.39%
EBIT Next 5Y24.62%
FCF growth 1Y-18.13%
FCF growth 3Y-8.66%
FCF growth 5Y8.14%
OCF growth 1Y-12.19%
OCF growth 3Y1.97%
OCF growth 5Y12.21%