We assign a fundamental rating of 5 out of 10 to JHX. JHX was compared to 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
JHX had positive earnings in each of the past 5 years.
Each year in the past 5 years JHX had a positive operating cash flow.

1.2 Ratios

JHX has a worse Return On Assets (1.37%) than 84.62% of its industry peers.
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.
With a Return On Invested Capital value of 3.80%, JHX is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years 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.
JHX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.93%, JHX is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of JHX has grown nicely.
JHX has a better Gross Margin (36.27%) than 92.31% of its industry peers.
JHX's Gross Margin has improved in the last couple of years.

		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.
Compared to 1 year ago, JHX has less shares outstanding
Compared to 5 years ago, JHX has less shares outstanding
JHX has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.48, we must say that JHX is in the distress zone and has some risk of bankruptcy.
JHX's Altman-Z score of 1.48 is on the low side compared to the rest of the industry. JHX is outperformed by 69.23% of its industry peers.
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.
JHX has a worse Debt to FCF ratio (17.06) than 61.54% of its industry peers.
JHX has a Debt/Equity ratio of 0.80. This is a neutral value indicating JHX is somewhat dependend on debt financing.
JHX has a worse Debt to Equity ratio (0.80) than 84.62% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.8
Debt/FCF	17.06
Altman-Z	1.48

ROIC/WACC0.52

WACC7.26%

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.
Looking at the Quick ratio, with a value of 1.23, JHX is in line with its industry, 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

The earnings per share for JHX have decreased strongly by -19.62% in the last year.
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.
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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.44, JHX is valued correctly.
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.
When comparing the Price/Earnings ratio of JHX to the average of the S&P500 Index (28.32), we can say JHX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.81, the valuation of JHX can be described as correct.
92.31% of the companies in the same industry are more expensive than JHX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.57. JHX is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	13.44
Fwd PE	13.81

4.2 Price Multiples

JHX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, JHX is valued cheaper than 84.62% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	32.95
EV/EBITDA	13.94

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)0.98

EPS Next 2Y-8.79%

EPS Next 3Y2.22%

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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 2.09, 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 1.83.

		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 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 13.44 and the Price/Book (PB) ratio is 1.56.

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.