Australia Stock Alert

AUSTR

CLOSING UPDATE: James Hardie Industries accelerates rise, now up 5.1% in 2 days October 18, 2017 16:00:00 AEST

NEWS BITES - AUSTRALIA

This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

James Hardie Industries, Australia's 8th largest materials company by market capitalisation, is up 90.0c (or 5.1%) over the past two trading days. After rising 1.7% on Tuesday, the stock rose 3.3% on Wednesday to trade at $A18.71 vs. the All Ordinaries Index that is up 0.6% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 0.08 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price climbed 5.8% in the last week and jumped 8.4% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 23.6 [26.3]

+ Return on Assets 13.7% [4.0%]

+ Return on Capital Employed 25% [9.1%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 13.9 times.

+ Net profit margin has averaged 15.4% in the last 3 years. This is considered superior and suggests a high margin of safety.

Note

James Hardie Industries today is at a discount of 17.8% to the 12-month high of $A22.75 on 02 May, 2017. It is at a premium of 9.9% to the 12-month low of $A17.03 on 18 Sep, 2017.

The stock has underperformed 67% of the Australian market over the past 6 months.

Bearish Signals:

In the last three months the stock has hit a new 52-week low twice.

Tobin's Q Ratio is 3.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 3.4 [2.2]

Dividend yield of 2.6% [3.6%]

TODAY'S ALERT

Afternoon Alert: James Hardie Industries accelerates rise, now up 5.0% in 2 days

October 18, 2017 13:00:00 AEST

James Hardie Industries PLC (ASX:JHX) is up 89.0c (or 5.0%) over the past two trading days. After rising 1.7% on Tuesday, the stock rose 3.3% on Wednesday to trade at $A18.70 vs. the All Ordinaries Index that is up 0.9% in the same period.

James Hardie Industries PLC (AU:JHX; ASX:JHX; AX:JHX)

ISIN: AU000000JHX1

PermID: 4298143620

Source: www.BuySellSignals.com