The Motley Fool

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.

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.

If you're after more dividend income than James Hardie can offer, check out these 3 ASX income earners below!

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!