3 Hold-Rated Dividend Stocks: KFN, JHX, BGCP
James Hardie Industries (NYSE: JHX) shares currently have a dividend yield of 8.60%. James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement products for interior and exterior building construction applications primarily in the United States, Canada, Australia, New Zealand, the Philippines, and Europe. The company has a P/E ratio of 86.28 The average volume for James Hardie Industries has been 9,500 shares per day over the past 30 days James Hardie Industries has a market cap of $3.8 billion and is part of the materials & construction industry Shares are down 10.9% year to date as of the close of trading on Wednesday TheStreet Ratings rates James Hardie Industries as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, premium valuation and weak operating cash flow. Highlights from the ratings report include:
- JHX's revenue growth has slightly outpaced the industry average of 0.4%. Since the same quarter one year prior, revenues slightly increased by 5.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- JHX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.43, which illustrates the ability to avoid short-term cash problems.
- 35.20% is the gross profit margin for JAMES HARDIE INDUSTRIES PLC which we consider to be strong. Regardless of JHX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JHX's net profit margin of -21.26% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction Materials industry. The net income has significantly decreased by 114.5% when compared to the same quarter one year ago, falling from $480.70 million to -$69.50 million.
- You can view the full James Hardie Industries Ratings Report.
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