Why We Like The Returns At James Hardie Industries (ASX:JHX)
Nov 23
Australian (ASX) Basic Materials Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies7
- 7D2.5%
- 3M-5.0%
- 1Y-40.3%
- YTD-42.2%
Over the last 7 days, the Basic Materials industry has risen 2.5%, driven by gains from James Hardie Industries of 1.8%. In the past year, the industry is down 40%. Looking forward, earnings are forecast to grow by 4.1% annually.
Industry Valuation and Performance
Has the Australian Basic Materials Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | AU$23.7b | AU$14.2b | AU$2.0b | 10.9x | 12.2x | 1.7x |
| Wed, 26 Oct 2022 | AU$24.3b | AU$14.3b | AU$2.0b | 9x | 12x | 1.7x |
| Fri, 23 Sep 2022 | AU$24.5b | AU$14.0b | AU$2.0b | 11.8x | 12.3x | 1.7x |
| Sun, 21 Aug 2022 | AU$27.3b | AU$13.7b | AU$1.9b | 14.9x | 14.5x | 2x |
| Tue, 19 Jul 2022 | AU$24.4b | AU$13.5b | AU$1.8b | 12.9x | 13.4x | 1.8x |
| Thu, 16 Jun 2022 | AU$23.1b | AU$13.4b | AU$1.8b | 13.6x | 12.7x | 1.7x |
| Sat, 14 May 2022 | AU$29.1b | AU$13.2b | AU$1.9b | 16.3x | 15.4x | 2.2x |
| Mon, 11 Apr 2022 | AU$30.5b | AU$12.7b | AU$1.8b | 16.7x | 17x | 2.4x |
| Wed, 09 Mar 2022 | AU$30.6b | AU$12.3b | AU$1.3b | 17.9x | 23.5x | 2.5x |
| Fri, 04 Feb 2022 | AU$36.3b | AU$12.5b | AU$1.2b | 22.1x | 29.1x | 2.9x |
| Sun, 02 Jan 2022 | AU$40.1b | AU$12.4b | AU$1.2b | 22.6x | 32.5x | 3.2x |
| Tue, 30 Nov 2021 | AU$39.8b | AU$12.5b | AU$1.2b | 23.2x | 31.9x | 3.2x |
| Thu, 28 Oct 2021 | AU$38.8b | AU$11.9b | AU$1.0b | 26.6x | 37.5x | 3.3x |
| Sat, 25 Sep 2021 | AU$39.4b | AU$12.1b | AU$1.0b | 26.8x | 37.6x | 3.3x |
| Mon, 23 Aug 2021 | AU$40.6b | AU$12.0b | AU$1.1b | 27.9x | 36.4x | 3.4x |
| Sat, 10 Jul 2021 | AU$37.9b | AU$12.0b | AU$1.1b | 29.4x | 34x | 3.2x |
| Fri, 02 Apr 2021 | AU$33.1b | AU$12.8b | AU$374.6m | 21.1x | 88.5x | 2.6x |
| Mon, 04 Jan 2021 | AU$31.1b | AU$13.8b | -AU$372,953,087.00 | 23.3x | -83.4x | 2.3x |
| Thu, 08 Oct 2020 | AU$27.4b | AU$14.1b | -AU$405,271,174.00 | 19.8x | -67.7x | 2x |
| Wed, 01 Jul 2020 | AU$23.3b | AU$14.2b | -AU$467,547,029.25 | 18.4x | -49.8x | 1.6x |
| Sat, 04 Apr 2020 | AU$15.6b | AU$14.9b | AU$193.1m | 19.1x | 81x | 1.1x |
| Tue, 07 Jan 2020 | AU$25.4b | AU$14.4b | AU$794.7m | 38.6x | 31.9x | 1.8x |
Price to Earnings Ratio
29.8x
Current Industry PE
- Investors are optimistic on the Australian Basic Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 12.2x which is higher than its 3-year average PE of 10.7x.
- The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.7x.
Past Earnings Growth
- The earnings for companies in the Basic Materials industry have grown 30% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the Australian Materials industry?
| AU Market | 1.17% | |
| Materials | 0.12% | |
| Basic Materials | 2.46% | |
| Construction Materials | 2.46% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| JHX James Hardie Industries | AU$30.07 | 3.2% +AU$418.9m | -45.3% | PE17.4x | |
| BKW Brickworks | AU$21.83 | 4.5% +AU$142.7m | -4.7% | PE3.8x | |
| CSR CSR | AU$4.85 | 3.0% +AU$65.8m | -17.1% | PE10.6x | |
| ABC Adbri | AU$1.81 | 3.1% +AU$35.9m | -37.4% | PE10.9x | |
| BLD Boral | AU$3.03 | 0.3% +AU$11.0m | -50.5% | PS1.1x |