JHX  James Hardie Industries Se

Exchange

NYSE

Sector

Capital Goods

Industry

Building Materials

Market Cap.

6.49B

Vuru Grade

31.48/100

Current Price

$14.73
-0.14 (-0.94%)

Growth Price

$2.27
Overvalued by 84.61%

Stability Price

$1.27
Overvalued by 91.36%

Company Metrics

  • P/E 23.76
  • P/S 3.41
  • P/B 280.38
  • EPS 0.62
  • Cash ROIC 7.22%
  • Cash Ratio 0.18
  • Dividend 0.39 / 2.65 %
  • Avg. Vol. 16,117.00
  • Shares 440.60M
  • Market Cap. 6.49B

Company Description

James Hardie Industries SE manufactures and sells fiber cement building products for interior and exterior building construction applications primarily in the United States, Australia, New Zealand, the Philippines, Canada, and Europe. The company offers fiber cement products comprising interior linings, exterior siding, and related accessories products. Its products are used in a number of markets... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

14.73
MarketWatch - Dec 21, 2009
James Hardie Industries PLC ADR. James Hardie Industries Plc engages in the manufacture of fiber cement products and systems for internal and external building construction applications.
News James Hardie Industries PLC ADRJHX
Wall Street Journal - Feb 12, 2011
News James Hardie Industries PLC ADRJHX. Significant News Only. 05/18/17; Dow Jones Newswires. James Hardie Price Target Cut 2% to A$19.50/Share by Citi.
$0.00 EPS Expected for James Hardie Industries plc (ADR) (JHX), Geode Capital ...
UtahHerald.com - May 8, 2017
Analysts expect James Hardie Industries plc (ADR) (NYSE:JHX) to report $0.00 EPS on May, 17. About 2,902 shares traded.
Sky Investment Group Increased Its Abbott Laboratories (ABT) Stake, James ...
NormanObserver.com - May 23, 2017
Among 2 analysts covering James Hardie Industries plc. (NYSE:JHX), 1 have Buy rating, 0 Sell and 1 Hold. Therefore 50% are positive.
Jabre Capital Partners Sa Lowered Crescent Pt Energy (CPG) Stake, 1 Analysts ...
Bibeypost.com - May 26, 2017
About 1,575 shares traded. James Hardie Industries plc (ADR) (NYSE:JHX) has risen 5.20% since May 26, 2016 and is uptrending.
EPS for James Hardie Industries plc (ADR) (JHX) Expected At $0.00
BZ Weekly - May 16, 2017
Investors wait James Hardie Industries plc (ADR) (NYSE:JHX) to report on May, 17. its quarterly earnings The stock increased 0.49% or $0.08 on May 15, reaching $16.26.
3 Construction Materials Stocks to Buy Now
Investorplace.com - Dec 9, 2016
The rating of James Hardie Industries PLC Sponsored ADR (JHX) moves up this week, rising from a C to a B. James Hardie Industries PLC Sponsored ADR manufactures and sells fiber cement building products for interior and exterior building construction ...
CRH PLC (CRH) Ex-Dividend Date Scheduled for March 09, 2017
Nasdaq - Mar 8, 2017
CRH is a part of the Capital Goods sector, which includes companies such as Cemex S.A.B. de C.V. ( CX ) and James Hardie Industries plc. ( JHX ). Zacks Investment Research reports CRH's forecasted earnings growth in 2017 as 28.48%, compared to an ...
Here is What Hedge Funds Think About CRH PLC (ADR) (CRH)
Insider Monkey (blog) - Apr 25, 2013
Let's also examine hedge fund and insider activity in other stocks similar to CRH PLC (ADR) (NYSE:CRH). These stocks are Texas Industries, Inc. (NYSE:TXI), Eagle Materials, Inc. (NYSE:EXP) and Cemex SAB de CV (ADR) (NYSE:CX). This group of stocks ...
Sacramento Magazine's Top Lawyers List
Sacramento Magazine - Jul 29, 2016
Quality counts, especially when it comes to lawyers. So it makes sense that if you need one, you'll want to choose one who's at the top of the heap.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for JHX to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate JHX's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$14.73 Current Price

$2.27 Growth Price (DCF)

Overvalued by 84.61%


Growth Rate Assumed by Market: 41.20%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$1.27 Stability Price (EPV)

Overvalued by 91.36%


Discount Rate: 15.0%

$-7.06 Book Price

Overvalued by 147.91%


Poor Cash Return on Invested Capital over the past 5 years

JHX has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

JHX has only created $7.22 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20132014201520162017
Free Cash Flow 48.20M 207.40M -98.40M 184.00M 188.20M
divided by
Invested Capital 1.63B 1.40B 1.60B 1.53B 1.51B
Cash ROIC 2.96% 14.80% -6.15% 12.00% 12.50%

Varying Return on Equity over the past 5 years

JHX has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

JHX has generated $50.00 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20132014201520162017
Net Income 45.50M 99.50M 291.30M 244.40M 276.50M
divided by
Stockholders' Equity 18.20M -199.00M -202.60M -225.20M -212.20M
Return on Equity 250.00% - - - -

Good Business Performance over the past 10 years

It's likely JHX has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is JHX has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

JHX has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Free Cash Flow 280.80M -71.30M 132.60M 96.90M 351.40M 48.20M 207.40M -98.40M 184.00M 188.20M

Very Weak Balance Sheet

JHX is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of JHX's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Cash 113.10M 95.30M 32.50M 24.40M 271.40M 160.80M 167.60M 67.00M 107.10M 78.90M
Current Assets 532.90M 464.70M 464.50M 458.10M 875.60M 691.00M 653.20M 524.00M 535.90M 632.10M
Total Assets 2.18B 1.90B 2.18B 1.96B 2.31B 2.11B 2.11B 2.04B 2.04B 2.01B
Current Liabilities 349.20M 315.00M 414.10M 322.50M 403.10M 317.30M 537.20M 377.90M 399.80M 428.80M
Total Liabilities 2.38B 2.01B 2.30B 2.42B 2.18B 2.09B 2.31B 2.25B 2.27B 2.22B
Stockholder' Equity -202.60M -108.70M -117.90M -454.50M 126.40M 18.20M -199.00M -202.60M -225.20M -212.20M
Current Ratio 1.53 1.48 1.12 1.42 2.17 2.18 1.22 1.39 1.34 1.47
TL-to-TA 1.09 1.06 1.05 1.23 0.95 0.99 1.09 1.10 1.11 1.11

Low or No Reinvestment of Profits over the past 10 years

JHX has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to JHX operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Retained Earnings -454.50M -352.80M -437.70M -784.70M -214.60M -357.60M -602.40M -586.60M -621.80M -612.90M
Retained Earnings Growth - 22.38% -24.06% -79.28% 72.65% -66.64% -68.46% 2.62% -6.00% 1.43%

Competitive Industry over the past 10 years

JHX is likely operating in an industry with medium to low barriers to entry. This may mean that JHX doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that JHX invests heavily in R&D and Sales, General & Administrative expenses.

Only $7.42 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Net Income -71.60M 136.30M -84.90M -347.00M 604.30M 45.50M 99.50M 291.30M 244.40M 276.50M
divided by
Revenue 1.47B 1.20B 1.12B 1.17B 1.24B 1.32B 1.49B 1.66B 1.73B 1.92B
Net Profit Margin -4.87% 11.33% -7.55% -29.73% 48.83% 3.44% 6.66% 17.58% 14.14% 14.39%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. JHX has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$34.41 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Gross Profit 530.00M 388.80M 416.10M 391.90M 407.00M 419.30M 506.40M 578.80M 632.20M 674.70M
divided by
Revenue 1.47B 1.20B 1.12B 1.17B 1.24B 1.32B 1.49B 1.66B 1.73B 1.92B
Gross Margin 36.08% 32.33% 37.00% 33.58% 32.89% 31.73% 33.90% 34.93% 36.58% 35.11%

High Capital Intensity over the past 10 years

JHX spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

62.80% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Capital Expenditure 38.50M 26.10M 50.50M 50.30M 35.80M 61.10M 115.40M 277.90M 76.40M 103.90M
divided by
Net Income -71.60M 136.30M -84.90M -347.00M 604.30M 45.50M 99.50M 291.30M 244.40M 276.50M
Capital Expenditure Ratio -53.77% 19.15% -59.48% -14.50% 5.92% 134.29% 115.98% 95.40% 31.26% 37.58%

Good Dividend History over the past 10 years

JHX has distributed dividends for the past 6 years. Remember, the longer a company's dividend history, the more established the company might be and the more reliable the future of the dividend probably is.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Dividend Paid 126.20M 34.60M - - 17.40M 188.50M 199.10M 390.10M 246.50M 176.80M
divided by
Shares Outstanding 91.00M 86.90M 86.62M 87.12M 87.58M 88.12M 88.92M 89.28M 447.20M 443.90M
Dividend Paid Per Share 1.39 0.40 - - 0.20 2.14 2.24 4.37 0.55 0.40
Price at Year End 15.11 37.09 35.14 35.01 47.35 56.73 53.43 12.60 15.90 16.23
Dividend Yield 9.18% 1.07% - - 0.42% 3.77% 4.19% 34.68% 3.47% 2.45%

History of Stock Buybacks over the past 10 years

JHX has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in March
2008200920102011201220132014201520162017
Shares Outstanding 91.00M 86.90M 86.62M 87.12M 87.58M 88.12M 88.92M 89.28M 447.20M 443.90M
Stock Bought Back - 4.72% 0.32% -0.57% -0.53% -0.61% -0.90% -0.40% -80.04% 0.74%
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