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. More Details


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: JHX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

JHX

-2.5%

AU Basic Materials

-0.6%

AU Market


1 Year Return

36.2%

JHX

17.7%

AU Basic Materials

0.009%

AU Market

Return vs Industry: JHX exceeded the Australian Basic Materials industry which returned 15.4% over the past year.

Return vs Market: JHX exceeded the Australian Market which returned -3.1% over the past year.


Shareholder returns

JHXIndustryMarket
7 Day-2.8%-2.5%-0.6%
30 Day12.1%11.4%11.0%
90 Day24.0%22.9%8.8%
1 Year36.2%36.2%19.6%17.7%3.4%0.009%
3 Year93.1%82.1%23.2%11.4%23.0%7.8%
5 Year163.4%136.0%77.8%49.2%58.4%26.1%

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?

85.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JHX (A$38.75) is trading above our estimate of fair value (A$26.67)

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 (85.2x) compared to the XX Basic Materials industry average (15.1x).

PE vs Market: JHX is poor value based on its PE Ratio (85.2x) compared to the Australian market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: JHX is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: JHX is overvalued based on its PB Ratio (10.7x) compared to the AU Basic Materials industry average (2.6x).


Next Steps

Future Growth

How is James Hardie Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHX's forecast earnings growth (19.6% per year) is above the savings rate (2.3%).

Earnings vs Market: JHX's earnings (19.6% per year) are forecast to grow faster than the Australian market (17.9% per year).

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

Revenue vs Market: JHX's revenue (9.1% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: JHX's revenue (9.1% 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 (28.4%)


Next Steps

Past Performance

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

-7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JHX has a large one-off loss of $92.6M impacting its September 30 2020 financial results.

Growing Profit Margin: JHX's current net profit margins (5.6%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: JHX's earnings have declined by 7.4% per year over the past 5 years.

Accelerating Growth: JHX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JHX had negative earnings growth (-42.6%) over the past year, making it difficult to compare to the Basic Materials industry average (2.3%).


Return on Equity

High ROE: JHX's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is James Hardie Industries's financial position?


Financial Position Analysis

Short Term Liabilities: JHX's short term assets ($1.0B) exceed its short term liabilities ($545.2M).

Long Term Liabilities: JHX's short term assets ($1.0B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: JHX's debt to equity ratio (106.3%) 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 (49.1%).

Interest Coverage: JHX's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet


Next Steps

Dividend

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

1.79%

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?

1.8yrs

Average management tenure


CEO

Jack Truong (58 yo)

1.83yrs

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 ($USD6.07M) is above average for companies of similar size in the Australian market ($USD3.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jack Truong
CEO & Director1.83yrsUS$6.07mno data
Jason Miele
Senior VP & CFO0.75yrUS$1.25m0.0042%
$ 733.8k
Ryan Kilcullen
Executive Vice President of Operations4.25yrsUS$1.43mno data
Joseph Blasko
General Counsel9.42yrsUS$1.59m0.015%
$ 2.6m
Sean Gadd
Executive Vice President of North America Commercial5.08yrsUS$2.68m0.015%
$ 2.7m
Julie Katigan
Chief Human Resource Officer1.5yrsno datano data
Robert Stefansic
Executive Vice President of End-to-End Supply Chain0.33yrno datano data
Johnny Cope
Senior Vice President of North America Sales1.75yrsno datano data

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: JHX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jack Truong
CEO & Director1.83yrsUS$6.07mno data
Nigel Stein
Independent Non-Executive Director0.50yrno data0.00077%
$ 134.9k
Michael Hammes
Independent Chairman12.83yrsUS$1.09m0.0099%
$ 1.7m
Harold Wiens
Independent Non-Executive Director0.50yrno datano data
Moe Nozari
Independent Non-Executive Director1yrUS$102.67k0.00090%
$ 157.6k
David Harrison
Independent Non Executive Director12.5yrsUS$424.27k0.0043%
$ 760.1k
Anne Lloyd
Independent Non-Executive Director2yrsUS$751.38k0.0040%
$ 709.3k
Andrea Joosen
Independent Non-Executive Director5.67yrsUS$225.36k0.00088%
$ 154.1k
Persio Lisboa
Independent Non-Executive Director2.75yrsUS$253.18k0.00054%
$ 94.6k
Rada Rodriguez
Independent Non Executive Director2yrsUS$232.41kno data

2.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: JHX's board of directors are not considered experienced ( 2 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: 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$17.513b
  • Shares outstanding: 443.94m
  • 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)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

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 Philipp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 07:01
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.