James Hardie Industries (STU:JHA) GF Value Rank : 5 (As of Dec. 15, 2024)

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What is James Hardie Industries GF Value Rank?

James Hardie Industries has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of James Hardie Industries's GF Value Rank

For the Building Materials subindustry, James Hardie Industries's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

James Hardie Industries's GF Value Rank Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, James Hardie Industries's GF Value Rank distribution charts can be found below:

* The bar in red indicates where James Hardie Industries's GF Value Rank falls into.

James Hardie Industries GF Value Rank Related Terms

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James Hardie Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » James Hardie Industries PLC (STU:JHA) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

JHIUF:USA JHX:USA JHA0:Germany JHX:Australia

Address

Upper Hatch Street, 1st Floor, Block A, One Park Place, Dublin, IRL, D02 FD79

Website

https://www.jameshardie.com

James Hardie is a manufacturer of fiber cement-based building products, selling primarily to the residential construction industry. North America is the primary geography, generating about 80% of group earnings. Here, it is the largest manufacturer of fiber cement, which is mainly used for exterior siding on houses. Businesses in Australia, New Zealand, and Europe, make up the rest of earnings.

James Hardie Industries Headlines

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