ASX:JHX

Stock Analysis Report

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

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

JHX

3.0%

AU Basic Materials

2.6%

AU Market


1 Year Return

100.5%

JHX

35.8%

AU Basic Materials

19.8%

AU Market

Return vs Industry: JHX exceeded the Australian Basic Materials industry which returned 35.6% over the past year.

Return vs Market: JHX exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

JHXIndustryMarket
7 Day2.4%3.0%2.6%
30 Day6.7%6.7%4.0%
90 Day21.5%15.4%5.7%
1 Year105.7%100.5%41.4%35.8%25.2%19.8%
3 Year60.8%48.8%33.1%19.1%40.7%21.9%
5 Year174.7%136.8%86.6%52.6%62.0%25.5%

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?

35.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JHX (A$29.9) is trading above our estimate of fair value (A$13.79)

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 (35.3x) compared to the Basic Materials industry average (27.6x).

PE vs Market: JHX is poor value based on its PE Ratio (35.3x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: JHX is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: JHX is overvalued based on its PB Ratio (8.8x) compared to the AU Basic Materials industry average (2.1x).


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?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JHX's forecast earnings growth (14.8% per year) is above the savings rate (1.1%).

Earnings vs Market: JHX's earnings (14.8% per year) are forecast to grow faster than the Australian market (9.6% per year).

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

Revenue vs Market: JHX's revenue (7.6% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: JHX's revenue (7.6% 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 (30.7%)


Next Steps

Past Performance

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

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JHX has high quality earnings.

Growing Profit Margin: JHX's current net profit margins (10.2%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: JHX's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: JHX's earnings growth over the past year (41.6%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: JHX earnings growth over the past year (41.6%) exceeded the Basic Materials industry -37%.


Return on Equity

High ROE: Whilst JHX's Return on Equity (24.85%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is James Hardie Industries's financial position?


Financial Position Analysis

Short Term Liabilities: JHX's short term assets ($800.6M) exceed its short term liabilities ($482.1M).

Long Term Liabilities: JHX's short term assets ($800.6M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: JHX's debt to equity ratio (137.6%) 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 (24.9%).

Interest Coverage: JHX's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: JHX has a high level of physical assets or inventory.

Debt Coverage by Assets: JHX's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

1.72%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%2.3%markettop25%5.4%industryaverage3.3%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: JHX's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: JHX's dividend (1.74%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: JHX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: JHX's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.6%), JHX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JHX's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

What is the CEO of James Hardie Industries's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Jack Truong (57yo)

1yrs

Tenure

US$2,798,022

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 ($USD2.80M) is about average for companies of similar size in the Australian market ($USD2.84M).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

49yo

Average Age

Experienced Management: JHX's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: JHX's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$4,757,75225 Feb 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares268,305
Max PriceAU$17.85
SellAU$574,50125 Feb 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares32,350
Max PriceAU$17.85
BuyAU$16,07414 Feb 19
Andrea Joosen
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares940
Max PriceAU$17.10
BuyAU$26,04707 Feb 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares1,630
Max PriceAU$15.98
SellAU$32,074,48207 Feb 19
First Sentier Investors (Australia) IM Ltd
EntityCompany
Shares2,013,956
Max PriceAU$15.93

Ownership Breakdown

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


Management Team

  • Anne Lloyd (58yo)

    Interim CFO & Director

    • Tenure: 1.2yrs
    • Compensation: US$83.86k
  • Jack Truong (57yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$2.80m
  • Joe Blasko (52yo)

    General Counsel & Chief Compliance Officer

    • Tenure: 8.6yrs
    • Compensation: US$1.28m
  • Sean Gadd (46yo)

    Executive Vice President of North America Commercial

    • Tenure: 4.3yrs
    • Compensation: US$1.99m
  • Julie Katigan

    Chief Human Resource Officer

    • Tenure: 0.7yrs
  • Natasha Mercer

    Company Secretary

    • Tenure: 5.9yrs
  • Jason Miele (42yo)

    Vice President of Investor & Media Relations

    • Tenure: 2.9yrs
  • Ryan Kilcullen (38yo)

    Executive Vice President of Operations

    • Tenure: 3.4yrs

Board Members

  • Michael Hammes (77yo)

    Independent Chairman

    • Tenure: 12yrs
    • Compensation: US$904.36k
  • Brian Anderson (68yo)

    Independent Non Executive Director

    • Tenure: 13.1yrs
    • Compensation: US$246.07k
  • Moe Nozari (77yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • David Harrison (72yo)

    Independent Non Executive Director

    • Tenure: 11.7yrs
    • Compensation: US$244.41k
  • Anne Lloyd (58yo)

    Interim CFO & Director

    • Tenure: 1.2yrs
    • Compensation: US$83.86k
  • Russell Chenu (67yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: US$211.73k
  • Jack Truong (57yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$2.80m
  • Andrea Joosen (55yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: US$214.73k
  • Persio Lisboa (54yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: US$223.80k
  • Rada Rodriguez (60yo)

    Independent Non Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$78.83k

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$13.414b
  • Shares outstanding: 443.00m
  • 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 Philippines, and Europe. It operates through North America Fiber Cement, Asia Pacific Fiber Cement, Europe Building Products, Other Businesses, 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, as well as non-fiber cement products. 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, as well as other brands, which comprise Aspyre Collection by James Hardie, Artisan, Reveal, Cemplank, Scyon, Ritek, and Linea. 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 Analysis2020/01/21 10:34
End of Day Share Price2020/01/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.