ASX:JHX

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James Hardie Industries

Executive Summary

James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement siding and backer board products primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

JHX

8.1%

AU Basic Materials

4.2%

AU Market


1 Year Return

47.3%

JHX

6.6%

AU Basic Materials

-7.3%

AU Market

Return vs Industry: JHX exceeded the Australian Basic Materials industry which returned 7% over the past year.

Return vs Market: JHX exceeded the Australian Market which returned -7% over the past year.


Shareholder returns

JHXIndustryMarket
7 Day3.9%8.1%4.2%
30 Day25.5%27.2%12.6%
90 Day-2.7%-2.5%-2.5%
1 Year48.0%47.3%9.8%6.6%-3.5%-7.3%
3 Year45.1%36.9%3.2%-7.3%18.6%3.0%
5 Year74.0%55.9%26.4%4.9%33.4%4.6%

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?

34.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JHX (A$26.95) is trading above our estimate of fair value (A$12.82)

Significantly Below Fair Value: JHX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JHX is poor value based on its PE Ratio (34.5x) compared to the Basic Materials industry average (29.6x).

PE vs Market: JHX is poor value based on its PE Ratio (34.5x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: JHX is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: JHX is overvalued based on its PB Ratio (8.1x) compared to the AU Basic Materials industry average (1.9x).


Next Steps

Future Growth

How is James Hardie Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHX's forecast earnings growth (19.4% per year) is above the savings rate (2.3%).

Earnings vs Market: JHX's earnings (19.4% per year) are forecast to grow faster than the Australian market (15% per year).

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

Revenue vs Market: JHX's revenue (5.6% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: JHX's revenue (5.6% 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 high in 3 years time (23.9%)


Next Steps

Past Performance

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

-6.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JHX has a large one-off loss of $81.5M impacting its March 31 2020 financial results.

Growing Profit Margin: JHX's current net profit margins (9.3%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: JHX's earnings have declined by -6.7% per year over the past 5 years.

Accelerating Growth: JHX's earnings growth over the past year (5.6%) exceeds its 5-year average (-6.7% per year).

Earnings vs Industry: JHX earnings growth over the past year (5.6%) exceeded the Basic Materials industry -55.8%.


Return on Equity

High ROE: Whilst JHX's Return on Equity (23.33%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is James Hardie Industries's financial position?


Financial Position Analysis

Short Term Liabilities: JHX's short term assets ($908.4M) exceed its short term liabilities ($510.0M).

Long Term Liabilities: JHX's short term assets ($908.4M) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: JHX's debt to equity ratio (130.8%) 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 (33.3%).

Interest Coverage: JHX's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.81%

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?

3.8yrs

Average management tenure


CEO

Jack Truong (57yo)

1.42yrs

Tenure

US$6,068,263

Compensation

Dr. Jack G. Truong, BS, Ph.D., has been 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 ($USD6.07M) is above average for companies of similar size in the Australian market ($USD2.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jack Truong
CEO & Director1.42yrsUS$6.07mno data
Jason Miele
Senior VP & CFO0.33yrUS$1.25m0.0042% $501.6k
Ryan Kilcullen
Executive Vice President of Operations3.83yrsUS$1.43mno data
Joseph Blasko
General Counsel & Chief Compliance Officer9yrsUS$1.59m0.015% $1.7m
Sean Gadd
Executive Vice President of North America Commercial4.67yrsUS$2.68m0.015% $1.8m
Julie Katigan
Chief Human Resource Officer1.08yrsno datano data
Natasha Mercer
Company Secretary6.33yrsno datano data

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: JHX's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jack Truong
CEO & Director1.42yrsUS$6.07mno data
Michael Hammes
Independent Chairman12.42yrsUS$1.09m0.010% $1.2m
Brian Anderson
Independent Non Executive Director13.5yrsUS$256.25k0.0043% $510.0k
Moe Nozari
Independent Non-Executive Director0.58yrUS$102.67k0.00023% $27.5k
David Harrison
Independent Non Executive Director12.08yrsUS$424.27k0.0043% $519.5k
Anne Lloyd
Independent Non-Executive Director1.58yrsUS$751.38k0.0020% $242.4k
Russell Chenu
Independent Non-Executive Director5.83yrsUS$210.55k0.024% $2.8m
Andrea Joosen
Independent Non-Executive Director5.25yrsUS$225.36k0.00088% $105.1k
Persio Lisboa
Independent Non-Executive Director2.33yrsUS$253.18k0.00054% $64.5k
Rada Rodriguez
Independent Non Executive Director1.58yrsUS$232.41kno data

3.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: JHX's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JHX 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$11.943b
  • Shares outstanding: 443.14m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JHXNYSE (New York Stock Exchange)SPONSORED ADRUSUSDOct 1995
JHXASX (Australian Securities Exchange)YesCHESS DEP INTAUAUDOct 2001
JHIU.FOTCPK (Pink Sheets LLC)YesCHESS DEP INTUSUSDOct 2001
JHADB (Deutsche Boerse AG)YesCHESS DEP INTDEEUROct 2001
JHXCHIA (Chi-X Australia)YesCHESS DEP INTAUAUDOct 2001

Biography

James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement siding and backer board products primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe. It operates through North America Fiber Cement, Asia Pacific Fiber Cement, Europe Building Products, and Research and Development segments. The company offers fiber cement interior linings, exterior siding products, and related accessories; and fiber cement building materials for a range of applications, including external siding, internal walls, floors, ceilings, soffits, trim, fencing, and decking. It also provides planks, which are used for external siding; flat panels that are used for internal and external wall linings; floor underlayments; fiber gypsum and cement-bonded boards for interior applications, such as dry lining walls, walls in timber frame buildings, and flooring solutions; and cement-bonded boards for use in exterior and industrial applications, and fire protection. The company’s products are use in various markets comprising new residential construction, manufactured housing, repair and remodeling, and commercial and industrial applications. It markets its fiber cement products and systems under various brands that include HardiePlank, HardiePanel, HardieTrim, and HardieBacker boards; and Hardieflex, HardieEdge, HardieFire, HardieBreak, and HardieSmart Boundary, as well as other brands, which comprise Aspyre Collection by James Hardie, Artisan, and Reveal; and Stria, Axon, ExoTec, Scyon, Ritek, Fermacell, and AESTUVER. The company was founded in 1888 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 10:43
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.