Why the James Hardie share price is up 90% in 2019

The James Hardie Industries PLC (ASX: JHX) share price has been a top performer on the ASX this year – but is there still time to buy?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The James Hardie Industries PLC (ASX: JHX) share price has been a top performer on the ASX this year.

James Hardie shares are up 90% so far this year on the back of consistent increases in earnings. 

So, is there still time to buy into James Hardie or should you be looking elsewhere for value on the ASX?

Why the James Hardie share price is surging higher

The biggest catalyst for the company's capital gains this year has been consistently strong earnings.

Back in May, James Hardie shares rocketed higher after a 57% in net operating profit to US$228.8 million ($331.3 million).

Revenue surged 22% higher to US$2.51 billion as the company's Fermacell acquisition in Europe and growth in its North American Fibre Cement business flowed through to the bottom line.

A strong growth forecast for FY 2020 saw the James Hardie share price rocket higher in May despite a lag in the company's European business.

The Aussie building materials supplier continued its bumper year with further earnings increases in November.

The company reported adjusted net operating profit (NOPAT) of US$98.6 million for the September quarter and US$188.8 million for the half year.

Those represents double-digit growth figures for the Aussie group and investors were clearly impressed.

The James Hardie share price rocketed to a record high of $29.11 per share last week and have been climbing higher for years.

The company's shares are up 282% in the last decade and that's not even counting its 1.38% dividend yield.

Is James Hardie good value compared to the ASX 200?

The James Hardie share price has been a top performer among the ASX 200 stocks so far this year.

The company has outperformed the benchmark S&P/ASX 200 Index (INDEXASX: XJO) but is trading at an expensive 33x earnings multiple.

I'd be waiting until the company's next earnings release in May 2020 before buying into the stock.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Pointsbet, Qantas, Serko, and Yandal shares are pushing higher today

These shares are avoiding the market selloff today. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best performing ASX 200 shares in October

Did you own the best performers on the index last month? Here they are.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors copped another rough session this Thursday.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Wednesday session for ASX investors today...

Read more »

Hiker man backpacker with hands up in the summer mountains with cloudy sky.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed anther positive session this Tuesday.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Firefly, Premier Investments, Serko, and Zip shares are roaring higher today

These shares are catching the eye with strong gains on Tuesday. But why are they rising?

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX tech stock just leapt 26% on accelerating growth

Here’s what’s grabbing investor interest.

Read more »