James Hardie Total Debt vs. Price To Sales
| JHX Stock | USD 36.15 0.98 2.79% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.28 | 0.4035 |
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| Net Profit Margin | 0.14 | 0.1296 |
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| Operating Profit Margin | 0.1 | 0.195 |
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| Pretax Profit Margin | 0.2 | 0.1918 |
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| Return On Assets | 0.11 | 0.1039 |
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For James Hardie profitability analysis, we use financial ratios and fundamental drivers that measure the ability of James Hardie to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well James Hardie Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between James Hardie's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of James Hardie Industries over time as well as its relative position and ranking within its peers.
James |
Is Construction Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of James Hardie. If investors know James will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about James Hardie listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.44) | Earnings Share 1.01 | Revenue Per Share 9.068 | Quarterly Revenue Growth (0.04) | Return On Assets 0.1209 |
The market value of James Hardie Industries is measured differently than its book value, which is the value of James that is recorded on the company's balance sheet. Investors also form their own opinion of James Hardie's value that differs from its market value or its book value, called intrinsic value, which is James Hardie's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because James Hardie's market value can be influenced by many factors that don't directly affect James Hardie's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between James Hardie's value and its price as these two are different measures arrived at by different means. Investors typically determine if James Hardie is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, James Hardie's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
James Hardie Industries Price To Sales vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining James Hardie's current stock value. Our valuation model uses many indicators to compare James Hardie value to that of its competitors to determine the firm's financial worth. James Hardie Industries is rated below average in total debt category among its peers. It is rated fifth overall in price to sales category among its peers . The ratio of Total Debt to Price To Sales for James Hardie Industries is about 301,743,631 . At this time, James Hardie's Price To Sales Ratio is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the James Hardie's earnings, one of the primary drivers of an investment's value.James Total Debt vs. Competition
James Hardie Industries is rated below average in total debt category among its peers. Total debt of Materials industry is currently estimated at about 188.07 Billion. James Hardie maintains roughly 1.2 Billion in total debt contributing less than 1% to all equities under Materials industry.
James Price To Sales vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
James Hardie |
| = | 1.2 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
James Hardie |
| = | 3.98 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
James Price To Sales Comparison
James Hardie is currently under evaluation in price to sales category among its peers.
James Hardie Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in James Hardie, profitability is also one of the essential criteria for including it into their portfolios because, without profit, James Hardie will eventually generate negative long term returns. The profitability progress is the general direction of James Hardie's change in net profit over the period of time. It can combine multiple indicators of James Hardie, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -68.3 M | -64.9 M | |
| Operating Income | 767.4 M | 805.8 M | |
| Income Before Tax | 754.8 M | 792.5 M | |
| Net Income Applicable To Common Shares | 588.8 M | 618.2 M | |
| Net Income | 510.2 M | 535.7 M | |
| Income Tax Expense | 244.6 M | 256.8 M | |
| Total Other Income Expense Net | -12.6 M | -13.2 M | |
| Net Income From Continuing Ops | 510.2 M | 327.2 M | |
| Interest Income | 21.1 M | 19.1 M | |
| Net Interest Income | -15.3 M | -16.1 M | |
| Change To Netincome | 154.4 M | 123.3 M | |
| Net Income Per Share | 1.16 | 1.22 | |
| Income Quality | 1.79 | 1.88 | |
| Net Income Per E B T | 0.68 | 0.97 |
James Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on James Hardie. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of James Hardie position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the James Hardie's important profitability drivers and their relationship over time.
Use James Hardie in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if James Hardie position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in James Hardie will appreciate offsetting losses from the drop in the long position's value.James Hardie Pair Trading
James Hardie Industries Pair Trading Analysis
The ability to find closely correlated positions to James Hardie could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace James Hardie when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back James Hardie - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling James Hardie Industries to buy it.
The correlation of James Hardie is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as James Hardie moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if James Hardie Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for James Hardie can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your James Hardie position
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Additional Tools for James Stock Analysis
When running James Hardie's price analysis, check to measure James Hardie's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy James Hardie is operating at the current time. Most of James Hardie's value examination focuses on studying past and present price action to predict the probability of James Hardie's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move James Hardie's price. Additionally, you may evaluate how the addition of James Hardie to your portfolios can decrease your overall portfolio volatility.