Overall JHX gets a fundamental rating of 5 out of 10. We evaluated JHX against 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
JHX had positive earnings in each of the past 5 years.
In the past 5 years JHX always reported a positive cash flow from operatings.

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 worse Return On Equity (3.04%) than 84.62% of its industry peers.
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 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

Looking at the Profit Margin, with a value of 4.67%, JHX is doing worse than 84.62% of the companies in the same industry.
JHX's Profit Margin has improved in the last couple of years.
JHX has a Operating Margin of 17.93%. This is in the better half of the industry: JHX outperforms 61.54% of its industry peers.
JHX's Operating Margin has improved in the last couple of years.
JHX has a better Gross Margin (36.27%) 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), JHX is creating value.
JHX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for JHX has been reduced compared to 5 years ago.
The debt/assets ratio for JHX has been reduced compared to a year ago.

2.2 Solvency

JHX has an Altman-Z score of 1.53. 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.
The Debt to FCF ratio of JHX is 17.06, which is on the high side as it means it would take JHX, 17.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of JHX (17.06) is worse than 61.54% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that JHX is somewhat dependend on debt financing.
The Debt to Equity ratio of JHX (0.80) is worse than 84.62% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.8
Debt/FCF	17.06
Altman-Z	1.53

ROIC/WACC0.52

WACC7.28%

2.3 Liquidity

A Current Ratio of 1.79 indicates that JHX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.79, JHX perfoms like the industry average, outperforming 46.15% of the companies in the same 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.
With a Quick ratio value of 1.23, JHX perfoms like the industry average, outperforming 53.85% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.79
Quick Ratio	1.23

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
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.
JHX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.60%.
The Revenue has been growing by 8.27% on average over the past years. This is quite good.

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.
The Revenue is expected to grow by 13.86% on average over the next years. This is quite good.

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.25, JHX is valued correctly.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.25, JHX is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.63 indicates a correct valuation of JHX.
Based on the Price/Forward Earnings ratio, JHX is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.98. JHX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	14.25
Fwd PE	14.63

4.2 Price Multiples

JHX's Enterprise Value to EBITDA ratio is in line with the industry average.
69.23% 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	34.92
EV/EBITDA	14.57

4.3 Compensation for Growth

The decent profitability rating of JHX may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)1.04

EPS Next 2Y-8.79%

EPS Next 3Y2.22%

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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.
Compared to an average S&P500 Dividend Yield of 1.82, JHX has a dividend comparable with the average S&P500 company.

		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%

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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 14.25 and the Price/Book (PB) ratio is 1.66.

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.