James Hardie Industries PLC (JHX, Financial), a leading player in the Building Materials industry, has been making waves in the stock market. As of August 8, 2023, the company's stock price stands at $31.4, marking a significant gain of 15.82% today and an impressive 19.73% over the past four weeks. With a market capitalization of $13.86 billion, JHX's robust performance is reflected in its high GF Score of 98 out of 100, indicating the highest outperformance potential.
Financial Strength: A Solid Foundation
JHX's Financial Strength rank stands at 6 out of 10, indicating a strong financial situation. The company's interest coverage is 21.04, suggesting it can comfortably meet its interest obligations. Its debt to revenue ratio is 0.31, indicating a manageable debt burden. Furthermore, its Altman Z score of 4.41 suggests a low risk of financial distress.
Profitability Rank: Consistently High
The company's Profitability Rank is a perfect 10 out of 10, reflecting its consistent profitability. JHX's operating margin stands at 20.61%, and its Piotroski F-Score is 7, indicating a healthy financial situation. The company has maintained profitability for the past 10 years, with a 5-year average operating margin trend of 5.10%.
Growth Rank: Impressive Expansion
JHX's Growth Rank is also a perfect 10 out of 10, reflecting its robust growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 14.10%, and its 3-year revenue growth rate is 10.40%. Its 5-year EBITDA growth rate is an impressive 25.80%, indicating strong business operations growth.
GF Value Rank: Attractive Valuation
The company's GF Value Rank is 9 out of 10, suggesting that the stock is attractively valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on the company's past returns and growth.
Momentum Rank: Strong Momentum
JHX's Momentum Rank is 10 out of 10, reflecting the strong momentum of the stock. This rank is determined using the standardized momentum ratio and other momentum indicators, suggesting that the stock has a high potential for future gains.
Competitor Analysis: Leading the Pack
When compared to its main competitors in the Building Materials industry, JHX stands out with its high GF Score. Boral Ltd (ASX:BLD, Financial) has a GF Score of 55, Brickworks Ltd (ASX:BKW, Financial) has a GF Score of 81, and Adbri Ltd (ASX:ABC, Financial) has a GF Score of 78. This comparison further highlights JHX's strong performance and potential for outperformance. More details can be found on the competitors page.
Conclusion: A Promising Investment
In conclusion, James Hardie Industries PLC's high GF Score, strong financial strength, consistent profitability, impressive growth, attractive valuation, and strong momentum make it a promising investment in the Building Materials industry. Investors seeking high returns should consider adding JHX to their portfolio.
