Based on the provided data and recent market performance, here's a concise analysis of JHX's valuation:
Technical Analysis
The stock shows bearish signals with RSI_14 at 40.22 and MACD trending negative (-0.25). Current price is trading below all major moving averages (5,10,20,60,200-day), indicating downward pressure.
Valuation Metrics
- Forward P/E has improved from 29.28x (2022) to 18.84x (2023)
- EV/EBITDA decreased from 14.52x to 11.06x
- P/S ratio declined from 3.72x to 2.55x
- P/B ratio reduced from 10.07x to 5.94x
Recent Performance
The stock has shown improved fundamentals with:
- Revenue growth from $3.61B to $3.77B
- Net income increase from $459M to $512M
- Net margin expansion from 12.7% to 13.56%
Analyst View
According to recent coverage, Jefferies upgraded JHX to Buy from Hold, citing flexibility in SG&A investment and potential to achieve FY25 guidance of $635M+ NPAT despite volume challenges.
Based on these metrics, JHX appears fairly valued at current levels. The company's improving operational efficiency and declining valuation multiples suggest the stock is not overvalued, despite recent technical weakness.