JHX  James Hardie Industries Se

Exchange

NYSE

Sector

Capital Goods

Industry

Building Materials

Market Cap.

6.47B

Vuru Grade

28.49/100

Current Price

$14.68
+0.09 (+0.62%)

Growth Price

$2.18
Overvalued by 85.18%

Stability Price

$1.08
Overvalued by 92.67%

Company Metrics

  • P/E 24.97
  • P/S 3.45
  • P/B 280.38
  • EPS 0.59
  • Cash ROIC 9.02%
  • Cash Ratio 0.27
  • Dividend 0.39 / 2.68 %
  • Avg. Vol. 10,849.00
  • Shares 440.74M
  • Market Cap. 6.47B

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

News James Hardie Industries PLC ADRJHX
Wall Street Journal - Feb 12, 2011
News James Hardie Industries PLC ADRJHX. Significant News Only. 11/16/16; Dow Jones Newswires. James Hardie 1H Net Profits Falls 24%; Cuts FY Guidance.
Revenue Update on James Hardie Industries plc (ADR)(NYSE:JHX)
Morning Outlook - Feb 8, 2017
James Hardie Industries plc (ADR)(NYSE:JHX) announced the earnings results for Fiscal Year 2017 and Q3. The results came in during Pre-Market on Feb 3, 2017.
James Hardie Industries PLC. (JHX) Downgraded by Zacks Investment Research to Sell - Sports Perspectives
Zacks Investment Research downgraded James Hardie Industries plc (ADR) (NYSE ...
Breaking Finance News - Feb 7, 2017
Zacks Investment Research has downgraded James Hardie Industries plc (ADR) (NYSE:JHX) to Sell in a report released on 02/07/2017.
James Hardie Industries PLC. - Receive News & Ratings Daily - BBNS
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 ...
The James Hardie Industries PLC (JHX) Upgraded to “Hold” at Zacks Investment ...
DailyQuint - Jan 23, 2017
Zacks Investment Research upgraded shares of James Hardie Industries PLC (NYSE:JHX) from a sell rating to a hold rating in a report released on Tuesday.
The James Hardie Industries PLC. (JHX) Upgraded to “Hold” by Zacks Investment ...
DailyQuint - Jan 18, 2017
James Hardie Industries PLC. (NYSE:JHX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Tuesday.
James Hardie Industries PLC (JHX) Raised to Hold at Zacks Investment Research
Sports Perspectives - Jan 20, 2017
Zacks Investment Research upgraded shares of James Hardie Industries PLC (NYSE:JHX) from a sell rating to a hold rating in a research report report published on Tuesday.
James Hardie Industries PLC. (JHX) Downgraded by Zacks Investment Research
Community Financial News - Feb 10, 2017
Zacks Investment Research downgraded shares of James Hardie Industries PLC. (NYSE:JHX) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.
James Hardie Industries plc (ASX:JHX) Initiates Accelerated Share Repurchase
Simply Wall St - Sep 5, 2016
Yesterday, Dublin-based fibre cement specialist, James Hardie Industries plc (ASX:JHX), announced accelerated share repurchase program to the tune of US$35 million.
2 Stocks to Play a Falling Aussie Dollar
Barron's - Sep 10, 2015
AU ) and building materials maker James Hardie Industries ( JHX.AU JHX.AU -3.5935563816604708% James Hardie Industries PLC ADR U.S.: NYSE USD15.56 ... Like Westfield, James Hardie pays a 4.1% dividend yield and earns 75% of its earnings in the U.S ...
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.

$14.68 Current Price

$2.18 Growth Price (DCF)

Overvalued by 85.18%


Growth Rate Assumed by Market: 41.69%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$1.08 Stability Price (EPV)

Overvalued by 92.67%


Discount Rate: 15.0%

$-7.70 Book Price

Overvalued by 152.46%


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 $9.02 of cash for every $100 invested.
Figures in USD. Fiscal year ends in March
20122013201420152016
Free Cash Flow 351.40M 48.20M 207.40M -98.40M 184.00M
divided by
Invested Capital 1.64B 1.63B 1.40B 1.60B 1.53B
Cash ROIC 21.49% 2.96% 14.80% -6.15% 12.00%

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 $145.62 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in March
20122013201420152016
Net Income 604.30M 45.50M 99.50M 291.30M 244.40M
divided by
Stockholders' Equity 126.40M 18.20M -199.00M -202.60M -225.20M
Return on Equity 478.09% 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
2007200820092010201120122013201420152016
Free Cash Flow -159.70M 280.80M -71.30M 132.60M 96.90M 351.40M 48.20M 207.40M -98.40M 184.00M

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
2007200820092010201120122013201420152016
Cash 34.10M 113.10M 95.30M 32.50M 24.40M 271.40M 160.80M 167.60M 67.00M 107.10M
Current Assets 576.60M 532.90M 464.70M 464.50M 458.10M 875.60M 691.00M 653.20M 524.00M 535.90M
Total Assets 2.13B 2.18B 1.90B 2.18B 1.96B 2.31B 2.11B 2.11B 2.04B 2.04B
Current Liabilities 317.60M 349.20M 315.00M 414.10M 322.50M 403.10M 317.30M 537.20M 377.90M 399.80M
Total Liabilities 1.87B 2.38B 2.01B 2.30B 2.42B 2.18B 2.09B 2.31B 2.25B 2.27B
Stockholder' Equity 258.70M -202.60M -108.70M -117.90M -454.50M 126.40M 18.20M -199.00M -202.60M -225.20M
Current Ratio 1.82 1.53 1.48 1.12 1.42 2.17 2.18 1.22 1.39 1.34
TL-to-TA 0.88 1.09 1.06 1.05 1.23 0.95 0.99 1.09 1.10 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
2007200820092010201120122013201420152016
Retained Earnings -178.70M -454.50M -352.80M -437.70M -784.70M -214.60M -357.60M -602.40M -586.60M -621.80M
Retained Earnings Growth - -154.34% 22.38% -24.06% -79.28% 72.65% -66.64% -68.46% 2.62% -6.00%

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 $6.96 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in March
2007200820092010201120122013201420152016
Net Income 150.80M -71.60M 136.30M -84.90M -347.00M 604.30M 45.50M 99.50M 291.30M 244.40M
divided by
Revenue 1.54B 1.47B 1.20B 1.12B 1.17B 1.24B 1.32B 1.49B 1.66B 1.73B
Net Profit Margin 9.77% -4.87% 11.33% -7.55% -29.73% 48.83% 3.44% 6.66% 17.58% 14.14%

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.

$34.62 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
2007200820092010201120122013201420152016
Gross Profit 573.00M 530.00M 388.80M 416.10M 391.90M 407.00M 419.30M 506.40M 578.80M 632.20M
divided by
Revenue 1.54B 1.47B 1.20B 1.12B 1.17B 1.24B 1.32B 1.49B 1.66B 1.73B
Gross Margin 37.14% 36.08% 32.33% 37.00% 33.58% 32.89% 31.73% 33.90% 34.93% 36.58%

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.

66.20% 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
2007200820092010201120122013201420152016
Capital Expenditure 92.60M 38.50M 26.10M 50.50M 50.30M 35.80M 61.10M 115.40M 277.90M 76.40M
divided by
Net Income 150.80M -71.60M 136.30M -84.90M -347.00M 604.30M 45.50M 99.50M 291.30M 244.40M
Capital Expenditure Ratio 61.41% -53.77% 19.15% -59.48% -14.50% 5.92% 134.29% 115.98% 95.40% 31.26%

Good Dividend History over the past 10 years

JHX has distributed dividends for the past 5 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
2007200820092010201120122013201420152016
Dividend Paid 42.10M 126.20M 34.60M - - 17.40M 188.50M 199.10M 390.10M 246.50M
divided by
Shares Outstanding 93.28M 91.00M 86.90M 86.62M 87.12M 87.58M 88.12M 88.92M 89.28M 447.20M
Dividend Paid Per Share 0.45 1.39 0.40 - - 0.20 2.14 2.24 4.37 0.55
Price at Year End 28.57 15.11 37.09 35.14 35.01 47.35 56.73 53.43 12.60 15.90
Dividend Yield 1.58% 9.18% 1.07% - - 0.42% 3.77% 4.19% 34.68% 3.47%

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
2007200820092010201120122013201420152016
Shares Outstanding 93.28M 91.00M 86.90M 86.62M 87.12M 87.58M 88.12M 88.92M 89.28M 447.20M
Stock Bought Back - 2.51% 4.72% 0.32% -0.57% -0.53% -0.61% -0.90% -0.40% -80.04%
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