James Hardie (JHX) AI Stock Analysis

• Market Cap: $17.22B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.47
• Revenue Growth: 2.20%
• EPS Growth: -16.72%
• Country: AU
• Employees: 5,679
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Construction Materials
• EPS (TTM): 0.55
• Shares Outstanding: 429,856,480
• 10 Day Avg. Volume: 2,548,399
• 30 Day Avg. Volume: 2,154,979
• PEG Ratio: 0.44
• Price to Book (P/B): 5.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -425.07
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 4.56
• Enterprise Value/Ebitda: 1.86
• 1Y Price Target: $44.48
• Price Target Upside: 8.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: ―

James Hardie's strong financial performance and strategic growth initiatives are key strengths, but technical indicators show bearish momentum. Valuation is fair, but the absence of a dividend yield and challenges in key markets weigh on the stock's attractiveness.

Positive Factors

Acquisition Strategy

The acquisition of AZEK is expected to provide scale and high growth opportunities for James Hardie.

Market Position

James Hardie is considered a best-in-class company with a significant competitive advantage due to its high-quality products.

Valuation

James Hardie's valuation is considered attractive, as it is significantly below the mean on EV/EBITDA.

Negative Factors

Earnings Outlook

Analyst reiterates an Underperform rating on James Hardie and remains cautious on its earnings outlook due to lower demand tracking.

Input Costs

Input costs are trending up, with a significant increase in pulp prices affecting the company's operations.

Macroeconomic Environment

A lower price objective has been set for James Hardie due to a more uncertain macroeconomic environment and demanding valuation.

James Hardie Business Overview & Revenue Model

Company Description

James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, the Philippines, and Canada. The company operates through three segments: North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement building materials for a range of applications, including external siding, internal walls, floors, ceilings, soffits, trim, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for applications, such as timber frame construction, dry lining, DIY, and structural fire protection. Its products are used in various markets comprising new residential construction and commercial construction markets. James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.

How the Company Makes Money

James Hardie generates revenue primarily through the sale of its fiber cement products, with a significant portion of sales coming from its flagship HardiePlank® siding. The company serves a diverse customer base that includes homeowners, builders, and contractors, primarily in North America, Australia, and Europe. Revenue streams are bolstered by the company's focus on research and development, enabling the continuous introduction of new products and improvements to existing offerings. Strategic partnerships with distributors and retailers further expand James Hardie's market reach, while cost efficiencies in manufacturing and supply chain management contribute to its profitability.

James Hardie Financial Statement Overview

Summary

James Hardie demonstrates strong financial health with consistent revenue growth, robust margins, and solid balance sheet metrics. Cash flow generation is efficient, but managing leverage and future growth are potential risks.

Income Statement

James Hardie has demonstrated strong performance with consistent revenue growth from $2.61 billion in 2020 to $3.91 billion TTM. The gross profit margin is robust at 39.44%, and net profit margin is healthy at 11.15% TTM. EBIT and EBITDA margins are also strong at 17.33% and 23.12%, respectively, indicating efficient operations and profitability.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.57, showing a balanced leverage position. The return on equity (ROE) is impressive at 20.76%, reflecting effective use of equity capital. An equity ratio of 42.79% indicates a stable financial structure with a strong equity base.

Cash Flow

James Hardie has maintained a positive cash flow position with free cash flow growing from $7.8 million to $368 million TTM. The operating cash flow to net income ratio is 1.89, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 0.84 suggests efficient capital expenditure management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.91B	3.94B	3.78B	3.61B	2.91B	2.61B
	Gross Profit
1.54B	1.59B	1.31B	1.31B	1.05B	933.70M
	EBIT
677.80M	767.40M	741.40M	682.60M	472.80M	342.50M
	EBITDA
904.20M	976.20M	933.10M	844.20M	594.80M	473.90M
	Net Income Common Stockholders
436.00M	510.20M	512.00M	459.10M	262.80M	241.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
539.10M	365.00M	113.00M	125.00M	208.50M	207.40M
	Total Assets
4.91B	4.91B	4.48B	4.24B	4.09B	4.03B
	Total Debt
1.19B	1.20B	1.14B	955.50M	922.60M	1.41B
	Net Debt
649.00M	836.00M	1.03B	830.50M	714.10M	1.27B
	Total Liabilities
2.81B	3.05B	2.87B	2.91B	3.03B	2.99B
	Stockholders Equity
2.10B	1.86B	1.61B	1.33B	1.06B	1.04B
Cash Flow		Free Cash Flow
368.00M	464.90M	7.80M	497.50M	666.70M	257.40M
	Operating Cash Flow
822.10M	914.20M	607.60M	757.20M	786.90M	451.20M
	Investing Cash Flow
-473.60M	-470.50M	-660.10M	-348.20M	-120.40M	-203.80M
	Financing Cash Flow
-240.90M	-210.10M	-25.40M	-449.60M	-540.20M	-179.00M

James Hardie Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.92
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:JHX, the sentiment is Neutral. The current price of 40.92 is above the 20-day moving average (MA) of 37.53, above the 50-day MA of 36.81, and below the 200-day MA of 48.58, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 89.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:JHX.

James Hardie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JHX	68 Neutral	$17.22B	26.82	21.09%	―	2.20%	-16.72%
Sector *	51 Neutral	$2.04B	-1.15	-21.37%	3.64%	2.88%	-30.57%
BLSFF		$6.71B	18.51	5.09%	2.63%	―	―
BRKWF		$3.20B	―	-1.34%	2.54%	―	―
GMD	76 Outperform	AU$5.15B	40.14	13.01%	―	125.45%	―
BGL	54 Neutral	AU$1.34B	12.50	14.70%	―	861.38%	―
BMH	40 Underperform	AU$1.47M	―	-165.55%	―	-96.51%	-251.72%

James Hardie Corporate Events

James Hardie Receives Substantial Holding Notice from Morgan Stanley

James Hardie Industries has received a substantial holding notice from Morgan Stanley, indicating that as of April 15, 2025, Morgan Stanley holds a 2.71% interest in the company, amounting to 11,651,748 shares. This notification is part of regulatory requirements and reflects Morgan Stanley’s investment position in James Hardie, which could have implications for the company’s shareholder structure and market perception.

James Hardie Receives Substantial Holding Notice from Morgan Stanley

James Hardie Industries has received a substantial holding notice from Morgan Stanley, indicating that the financial institution holds a 3.17% interest in the company’s shares as of April 14, 2025. This notification is part of compliance with the Companies Act 2014, reflecting Morgan Stanley’s significant stake, which may influence shareholder dynamics and market perception of James Hardie’s stock.

James Hardie Announces Change in Substantial Holdings

James Hardie Industries has announced a change in substantial holdings, with BlackRock, Inc.’s total holdings and voting rights falling below 6%. This adjustment in ownership may impact the company’s shareholder dynamics and influence its market positioning, as BlackRock is a significant institutional investor.

James Hardie Announces Substantial Holding by BlackRock

James Hardie Industries has announced a substantial holding notice as required under ASX Listing Rule 3.17.3, indicating that BlackRock, Inc. has increased its total holdings and voting rights in the company to above 6%. This development signifies a notable change in the ownership structure of James Hardie, potentially impacting its governance and strategic decisions, while also reflecting BlackRock’s increased interest and confidence in the company’s market position.

James Hardie Schedules Q4 FY25 Earnings Release and Conference Call

James Hardie Industries has announced the release date for its fourth quarter fiscal year 2025 financial results, scheduled for May 20th, 2025, in the United States and May 21st, 2025, in Australia. The company will host a conference call to discuss these results, which will be webcast live, offering stakeholders insights into the company’s financial performance and strategic direction.

James Hardie Announces New Securities Quotation

James Hardie Industries PLC has announced the issuance of 37,698 CHESS Depositary Interests, which are set to be quoted on the Australian Securities Exchange. This move is part of an employee incentive scheme, indicating the company’s efforts to enhance employee engagement and align interests with shareholders, potentially impacting its market positioning positively.

James Hardie Issues Restricted Stock Units to Employees

James Hardie Industries PLC announced the issuance of 3,378 restricted stock units under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s ongoing efforts to incentivize and retain key personnel, which could strengthen its operational capabilities and market position.

James Hardie Announces Change in Substantial Shareholding

James Hardie Industries has announced a change in the substantial holding of its shares, as reported to the Australian Securities Exchange. Challenger Limited, through its subsidiary Fidante Partners Limited, has reduced its shareholding in James Hardie from 3.5876% to 2.5618%. This change in shareholding could impact the company’s market dynamics and investor relations.

James Hardie Announces Proposed Issue of 150 Million Shares

James Hardie Industries PLC has announced a proposed issue of 150,438,000 ordinary shares, set to take place on September 30, 2025. This move is part of a placement or other type of issue, which could potentially impact the company’s market positioning by increasing its capital base and providing funds for growth initiatives, thereby influencing stakeholders and market dynamics.

James Hardie and AZEK Announce Strategic Merger to Enhance Growth

James Hardie has announced a strategic combination with The AZEK Company, aiming to create a leading growth platform in building products. This merger is expected to accelerate James Hardie’s current strategy and enhance its value proposition to customers, strengthening its industry positioning and potentially benefiting stakeholders.

James Hardie Proposes Acquisition of AZEK to Strengthen Market Position

James Hardie Industries plc, a leading player in the building products industry, has announced a proposed acquisition of The AZEK Company Inc. This strategic move aims to create a robust growth platform in the building products sector. The acquisition is expected to bring significant synergies and enhance the company’s market positioning. However, the transaction involves inherent risks and uncertainties, including regulatory approvals and potential impacts on market prices and business operations. Stakeholders are advised to consider these factors as the company navigates this significant strategic initiative.

James Hardie to Acquire AZEK in $8.75 Billion Deal, Expanding Market Reach

James Hardie Industries has announced a definitive agreement to acquire The AZEK Company for $8.75 billion, creating a leading building products growth platform. This strategic move is expected to significantly expand James Hardie’s market reach, accelerate revenue growth, and enhance profitability through synergies, positioning the combined company as a leader in the exterior and outdoor living product categories.

AustralianSuper Increases Stake in James Hardie Industries

James Hardie Industries has announced that AustralianSuper Pty Ltd has increased its shareholding in the company to 6.04% of its ordinary share capital as of March 10, 2025. This increase in shareholding, up from a previous 5.01% interest, signifies a growing confidence in James Hardie’s market position and could have implications for its strategic direction and stakeholder interests.

James Hardie Reports Robust Q3 FY25 Results, Reaffirms Growth Plans

James Hardie reported strong third-quarter results for fiscal year 2025, showcasing a GAAP operating income of $206 million and an adjusted EBITDA of $262 million. Despite a slight decline in net sales and adjusted EBITDA, the company reaffirmed its guidance for the rest of FY25 and its growth plans for FY26. CEO Aaron Erter emphasized the company’s strategic partnerships and strong team as key factors driving its success. CFO Rachel Wilson highlighted the company’s balanced approach to cost management and growth funding, which has positioned James Hardie to outperform its markets and invest in future growth.

James Hardie Announces Change in Substantial Holding

James Hardie Industries announced a substantial holding notice, indicating a change in shareholding below the 3% threshold by Superannuation and Investments HoldCo Pty Ltd and its subsidiaries. This disclosure reflects the entities’ aggregated interest of 2.978% in James Hardie Industries, equating to 12,798,346 shares, which could impact market perceptions and investor relations as it involves significant institutional stakeholders.