JAMES HARDIE IND PLC (JHX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:JHX - US47030M1062 - Common Stock
23.97 USD
+0.05 (+0.21%)
23.74 USD
-0.23 (-0.96%)
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 has a decent growth rate and is not valued too expensively.
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.
- JHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 1.37%, JHX is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
- JHX has a Return On Equity of 3.04%. This is amonst the worse of the industry: JHX underperforms 84.62% of its industry peers.
- JHX has a worse Return On Invested Capital (3.80%) 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 3 year average ROIC (13.97%) for JHX is well above the current ROIC(3.80%). The reason for the recent decline needs to be investigated.
| 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.
- The Operating Margin of JHX (17.93%) is better than 61.54% 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 36.27%, JHX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JHX 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
- The debt/assets ratio for JHX has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.51, we must say that JHX is in the distress zone and has some risk of bankruptcy.
- JHX's Altman-Z score of 1.51 is on the low side compared to the rest of the industry. JHX is outperformed by 69.23% of its industry peers.
- 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 has a Debt to FCF ratio of 17.06. This is in the lower half of the industry: JHX underperforms 61.54% of its industry peers.
- A Debt/Equity ratio of 0.80 indicates that JHX is somewhat dependend on debt financing.
- JHX's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. JHX is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 17.06 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.52
WACC7.27%
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.
- The Current ratio of JHX (1.79) is comparable to the rest of the industry.
- 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.
- The Quick ratio of JHX (1.23) 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%.
- JHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.73% yearly.
- 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.
- Based on estimates for the next years, JHX will show a quite strong growth in Revenue. The Revenue will grow by 13.86% on average per year.
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
- 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
- A Price/Earnings ratio of 14.02 indicates a correct valuation of JHX.
- JHX's Price/Earnings ratio is rather cheap when compared to the industry. JHX is cheaper than 92.31% of the companies in the same industry.
- When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (28.60), we can say JHX is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 14.40, the valuation of JHX can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of JHX indicates a rather cheap valuation: JHX is cheaper than 84.62% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. JHX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 14.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of JHX is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of JHX indicates a somewhat cheap valuation: JHX is cheaper than 76.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 14.33 |
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
- With a Yearly Dividend Yield of 2.07%, JHX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.03, 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 1.82.
| 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-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 14.02 and the Price/Book (PB) ratio is 1.63.
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.