James Hardie Industries plc
James Hardie Industries plc Fundamental Analysis
James Hardie Industries plc (JHX.AX) shows weak financial fundamentals with a PE ratio of 123.68, profit margin of 2.70%, and ROE of 2.78%. The company generates $4.4B in annual revenue with weak year-over-year growth of -1.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze JHX.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakJHX.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateJHX.AX shows balanced valuation metrics.
Growth Score
WeakJHX.AX faces weak or negative growth trends.
Financial Health Score
ExcellentJHX.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateJHX.AX maintains healthy but balanced margins.
Key Financial Metrics
Is JHX.AX Expensive or Cheap?
P/E Ratio
JHX.AX trades at 123.68 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, JHX.AX's PEG of -3.97 indicates potential undervaluation.
Price to Book
The market values James Hardie Industries plc at 2.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.83 times EBITDA. This signals the market has high growth expectations.
How Well Does JHX.AX Make Money?
Net Profit Margin
For every $100 in sales, James Hardie Industries plc keeps $2.70 as profit after all expenses.
Operating Margin
Core operations generate 12.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.78 in profit for every $100 of shareholder equity.
ROA
James Hardie Industries plc generates $0.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
James Hardie Industries plc produces operating cash flow of $602.05M, showing steady but balanced cash generation.
Free Cash Flow
James Hardie Industries plc produces free cash flow of $206.78M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
JHX.AX converts 1.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
123.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How JHX.AX Stacks Against Its Sector Peers
| Metric | JHX.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 123.68 | 27.18 | Worse (Expensive) |
| ROE | 2.78% | 860.00% | Weak |
| Net Margin | 2.70% | -121084.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.54 | 4.81 | Neutral |
| ROA | 0.86% | -7173.00% (disorted) | Weak |
JHX.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews James Hardie Industries plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.82%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
80.38%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
82.80%
Industry Style: Cyclical, Commodity, Value
High Growth