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JHX

James Hardie Industries ASX:JHX Stock Report

Last Price

AU$30.84

Market Cap

AU$13.7b

7D

-0.2%

1Y

-37.6%

Updated

01 Oct, 2022

Data

Company Financials +
JHX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance5/6
Financial Health4/6
Dividends4/6

JHX Stock Overview

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.

James Hardie Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for James Hardie Industries
Historical stock prices
Current Share PriceAU$30.84
52 Week HighAU$58.07
52 Week LowAU$28.60
Beta1.13
1 Month Change-7.14%
3 Month Change-3.78%
1 Year Change-37.56%
3 Year Change27.02%
5 Year Change74.63%
Change since IPO598.21%

Recent News & Updates

Aug 21
Here's Why James Hardie Industries (ASX:JHX) Has Caught The Eye Of Investors

Here's Why James Hardie Industries (ASX:JHX) Has Caught The Eye Of Investors

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

JHXAU Basic MaterialsAU Market
7D-0.2%0.1%-1.7%
1Y-37.6%-37.3%-10.8%

Return vs Industry: JHX matched the Australian Basic Materials industry which returned -37.3% over the past year.

Return vs Market: JHX underperformed the Australian Market which returned -10.8% over the past year.

Price Volatility

Is JHX's price volatile compared to industry and market?
JHX volatility
JHX Average Weekly Movement4.8%
Basic Materials Industry Average Movement4.8%
Market Average Movement9.4%
10% most volatile stocks in AU Market16.5%
10% least volatile stocks in AU Market4.2%

Stable Share Price: JHX is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: JHX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1888n/aAaron Erterhttps://www.ir.jameshardie.com.au

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. The company operates through three segments: North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement building materials for a range of applications, including external siding, internal walls, floors, ceilings, soffits, trim, fences, and facades.

James Hardie Industries Fundamentals Summary

How do James Hardie Industries's earnings and revenue compare to its market cap?
JHX fundamental statistics
Market CapAU$13.74b
Earnings (TTM)AU$777.34m
Revenue (TTM)AU$5.86b

17.7x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
JHX income statement (TTM)
RevenueUS$3.77b
Cost of RevenueUS$2.43b
Gross ProfitUS$1.35b
Other ExpensesUS$844.40m
EarningsUS$500.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 08, 2022

Earnings per share (EPS)1.12
Gross Margin35.66%
Net Profit Margin13.28%
Debt/Equity Ratio64.7%

How did JHX perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

62%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is JHX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JHX?

Other financial metrics that can be useful for relative valuation.

JHX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA9.5x
PEG Ratio3.2x

Price to Earnings Ratio vs Peers

How does JHX's PE Ratio compare to its peers?

JHX PE Ratio vs Peers
The above table shows the PE ratio for JHX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.6x
BKW Brickworks
3.8x-45.5%AU$3.3b
CSR CSR
7.9x-5.7%AU$2.1b
ABC Adbri
11.1x8.0%AU$1.2b
WGN Wagners Holding
19.7x20.6%AU$150.1m
JHX James Hardie Industries
17.7x5.4%AU$13.7b

Price-To-Earnings vs Peers: JHX is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the peer average (10.6x).


Price to Earnings Ratio vs Industry

How does JHX's PE Ratio compare vs other companies in the Global Basic Materials Industry?

Price-To-Earnings vs Industry: JHX is expensive based on its Price-To-Earnings Ratio (17.7x) compared to the Global Basic Materials industry average (13.2x)


Price to Earnings Ratio vs Fair Ratio

What is JHX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JHX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: JHX is good value based on its Price-To-Earnings Ratio (17.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).


Share Price vs Fair Value

What is the Fair Price of JHX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JHX (A$30.84) is trading below our estimate of fair value (A$94.75)

Significantly Below Fair Value: JHX is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is James Hardie Industries forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHX's forecast earnings growth (5.4% per year) is above the savings rate (1.8%).

Earnings vs Market: JHX's earnings (5.4% per year) are forecast to grow slower than the Australian market (6.5% per year).

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

Revenue vs Market: JHX's revenue (4.8% per year) is forecast to grow faster than the Australian market (3.7% per year).

High Growth Revenue: JHX's revenue (4.8% 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 high in 3 years time (37.4%)


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


18.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: JHX has high quality earnings.

Growing Profit Margin: JHX's current net profit margins (13.3%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: JHX's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: JHX's earnings growth over the past year (33.6%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: JHX earnings growth over the past year (33.6%) underperformed the Basic Materials industry 33.6%.


Return on Equity

High ROE: JHX's Return on Equity (37.7%) is considered high.


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Financial Health

How is James Hardie Industries's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: JHX's short term assets ($1.0B) exceed its short term liabilities ($900.1M).

Long Term Liabilities: JHX's short term assets ($1.0B) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: JHX's net debt to equity ratio (54.4%) 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 (84.6%).

Interest Coverage: JHX's interest payments on its debt are well covered by EBIT (22.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.02%

Current Dividend Yield

Dividend Yield vs Market

James Hardie Industries Dividend Yield vs Market
How does James Hardie Industries dividend yield compare to the market?
SegmentDividend Yield
Company (James Hardie Industries)3.0%
Market Bottom 25% (AU)2.8%
Market Top 25% (AU)7.2%
Industry Average (Basic Materials)4.0%
Analyst forecast in 3 Years (James Hardie Industries)4.6%

Notable Dividend: JHX's dividend (3.02%) is higher than the bottom 25% of dividend payers in the Australian market (2.8%).

High Dividend: JHX's dividend (3.02%) is low compared to the top 25% of dividend payers in the Australian market (7.16%).


Stability and Growth of Payments

Stable Dividend: JHX's dividend payments have been volatile in the past 10 years.

Growing Dividend: JHX's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (62.2%), JHX's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (79.6%), JHX's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

0.8yrs

Average management tenure


CEO

Aaron Erter (48 yo)

no data

Tenure

Mr. Aaron M. Erter serves as Chief Executive Officer and Executive Director at James Hardie Industries plc since September 02, 2022 and served as its CEO from November 2020 to August 2022. He served as Pre...


Leadership Team

Experienced Management: JHX's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: JHX's board of directors are considered experienced (3.1 years average tenure).


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

ASX:JHX Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
27 Jun 22BuyAU$465,142Colonial First State Investments LimitedCompany14,124AU$32.98
27 Jun 22SellAU$6,591,344Colonial First State Investments LimitedCompany200,106AU$33.06
05 Nov 21BuyAU$578,097,561The Vanguard Group, Inc.Company10,518,147AU$55.06
02 Nov 21SellAU$297,443,655The Vanguard Group, Inc.Company5,499,376AU$54.18
21 Oct 21BuyAU$547,302BlackRock, Inc.Company3,511,102AU$54.83

Ownership Breakdown

What is the ownership structure of JHX?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,059,0160.2%
Private Companies1,255,3620.3%
General Public158,924,79935.7%
Institutions284,415,74563.8%

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


Top Shareholders

Top 25 shareholders own 60.28% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.1%
AustralianSuper Pty. Ltd.
31,657,083$976.3m1.92%2.49%
6.75%
BlackRock, Inc.
30,079,418$927.6m-3.77%0.01%
5.29%
Invesco Ltd.
23,564,091$726.7m0%0.16%
5.22%
Pinnacle Fund Services Limited
23,241,576$716.8m0%17.9%
5.02%
Bangarra Group
22,359,348$689.6m-10.63%49.27%
4.53%
The Vanguard Group, Inc.
20,182,692$622.4m0%0.01%
4.43%
KKR & Co. Inc.
19,730,075$608.5m0%2.81%
4.25%
Challenger Limited
18,918,753$583.5m0%14.57%
3.99%
Colonial First State Investments Limited
17,793,779$548.8m-15.39%4.45%
3.77%
First Sentier Investors (Australia) IM Ltd
16,781,314$517.5m2.16%0.77%
3.26%
Schroder Investment Management Limited
14,529,189$448.1m0%0.23%
1.39%
Norges Bank Investment Management
6,186,872$190.8m0%0.02%
1.16%
Australian Foundation Investment Company Limited
5,188,383$160.0m8.6%2.22%
0.88%
State Street Global Advisors, Inc.
3,928,777$121.2m1.28%no data
0.56%
Geode Capital Management, LLC
2,500,318$77.1m1.69%0.01%
0.41%
Eaton Vance Management
1,816,486$56.0m-2.75%0.01%
0.34%
J.P. Morgan Asset Management, Inc.
1,529,051$47.2m-1.47%0.01%
0.33%
Dimensional Fund Advisors LP
1,469,591$45.3m8.31%0.01%
0.29%
Amundi Asset Management
1,282,458$39.6m1311.61%0.01%
0.24%
Goldman Sachs Asset Management, L.P.
1,077,142$33.2m0.24%0.01%
0.24%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,060,219$32.7m2.38%no data
0.22%
Charles Schwab Investment Management, Inc.
994,280$30.7m1.51%0.01%
0.22%
Netwealth Investments Ltd.
989,069$30.5m-11.64%0.41%
0.2%
abrdn plc
907,539$28.0m-0.1%0.02%
0.2%
BetaShares Capital Limited
872,633$26.9m4.65%0.22%

Company Information

James Hardie Industries plc's 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
  • Implied Market Cap: AU$13.744b
  • Shares outstanding: 445.65m
  • 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)SPON ADR EACH REP 1 CDIUSUSDOct 1995
JHA0DB (Deutsche Boerse AG)SPON ADR EACH REP 1 CDIDEEUROct 1995
JHXASX (Australian Securities Exchange)YesCDI(CHESS DEPOSITARY INTERESTS)AUAUDOct 2001
JHIU.FOTCPK (Pink Sheets LLC)YesCDI(CHESS DEPOSITARY INTERESTS)USUSDOct 2001
JHADB (Deutsche Boerse AG)YesCDI(CHESS DEPOSITARY INTERESTS)DEEUROct 2001
JHXCHIA (Chi-X Australia)YesCDI(CHESS DEPOSITARY INTERESTS)AUAUDOct 2001

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.