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James Hardie Industries

Market Cap

AU$24.0b

Last Updated

2021/09/18 08:03 UTC

Data Sources

Company Financials +

Executive Summary

James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, the Philippines, and Canada. More Details


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has James Hardie Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JHX is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: JHX's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

JHX

1.6%

AU Basic Materials

-0.02%

AU Market


1 Year Return

77.6%

JHX

59.5%

AU Basic Materials

27.0%

AU Market

Return vs Industry: JHX exceeded the Australian Basic Materials industry which returned 59.5% over the past year.

Return vs Market: JHX exceeded the Australian Market which returned 27% over the past year.


Shareholder returns

JHXIndustryMarket
7 Day1.2%1.6%-0.02%
30 Day2.4%0.1%-0.5%
90 Day16.9%8.0%0.7%
1 Year81.6%77.6%63.2%59.5%32.4%27.0%
3 Year174.6%159.3%66.7%53.6%35.9%19.3%
5 Year192.3%162.8%97.7%68.9%65.4%32.7%

Long-Term Price Volatility Vs. Market

How volatile is James Hardie Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is James Hardie Industries undervalued compared to its fair value and its price relative to the market?

15.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JHX (A$53.95) is trading below our estimate of fair value (A$64.09)

Significantly Below Fair Value: JHX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JHX is poor value based on its PE Ratio (46.6x) compared to the Australian Basic Materials industry average (26.6x).

PE vs Market: JHX is poor value based on its PE Ratio (46.6x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: JHX is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: JHX is overvalued based on its PB Ratio (14.7x) compared to the AU Basic Materials industry average (2.6x).


Future Growth

How is James Hardie Industries forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHX's forecast earnings growth (13.4% per year) is above the savings rate (1.9%).

Earnings vs Market: JHX's earnings (13.4% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: JHX's earnings are forecast to grow, but not significantly.

Revenue vs Market: JHX's revenue (8.8% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: JHX's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JHX's Return on Equity is forecast to be very high in 3 years time (69.1%).


Past Performance

How has James Hardie Industries performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JHX has high quality earnings.

Growing Profit Margin: JHX's current net profit margins (12%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: JHX's earnings have declined by 0.3% per year over the past 5 years.

Accelerating Growth: JHX's earnings growth over the past year (128%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: JHX earnings growth over the past year (128%) exceeded the Basic Materials industry 30.6%.


Return on Equity

High ROE: JHX's Return on Equity (31.6%) is considered high.


Financial Health

How is James Hardie Industries's financial position?


Financial Position Analysis

Short Term Liabilities: JHX's short term assets ($859.1M) exceed its short term liabilities ($603.3M).

Long Term Liabilities: JHX's short term assets ($859.1M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: JHX's debt to equity ratio (78.9%) is considered high.

Reducing Debt: JHX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: JHX's debt is well covered by operating cash flow (83.5%).

Interest Coverage: JHX's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet


Dividend

What is James Hardie Industries's current dividend yield, its reliability and sustainability?

2.26%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate JHX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate JHX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JHX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JHX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JHX is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JHX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Jack Truong (59 yo)

2.67yrs

Tenure

US$19,715,085

Compensation

Dr. Jack G. Truong, BS, Ph D., serves as Chief Executive Officer and Director at James Hardie Industries plc since Janauary 31, 2019 and was its President and Chief Operating Officer since 2018. Dr. Truong...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD19.72M) is above average for companies of similar size in the Australian market ($USD3.56M).

Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: JHX's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: JHX's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

James Hardie Industries plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: James Hardie Industries plc
  • Ticker: JHX
  • Exchange: ASX
  • Founded: 1888
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: AU$24.015b
  • Shares outstanding: 445.13m
  • Website: https://www.ir.jameshardie.com.au

Number of Employees


Location

  • James Hardie Industries plc
  • Europa House
  • 2nd Floor
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings


Biography

James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applicati...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.