James Hardie Industries PLC (JHX) AI Stock Analysis

• Market Cap: $10.31B
• Dividend Yield: N/A
• Average Volume (3M): 6.50M
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.34
• Revenue Growth: 4.60%
• EPS Growth: -52.56%
• Country: US
• Employees: 5,679
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.26
• Shares Outstanding: 579,185,060
• 10 Day Avg. Volume: 7,811,880
• 30 Day Avg. Volume: 6,504,141
• PEG Ratio: -1.54
• Price to Book (P/B): 4.70
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 26.67
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 3.78
• Enterprise Value/Gross Profit: 10.42
• Enterprise Value/Ebitda: 21.18
• 1Y Price Target: $25.18
• Price Target Upside: 35.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): $4.78B

• Rating: 72 Outperform
• Price Target: $31.00 ▲(66.40% Upside)

James Hardie scores highly due to its solid financial performance and strategic initiatives highlighted in the earnings call, despite challenging market conditions. The technical analysis presents mixed signals, and the valuation appears relatively high. The positive outlook and strategic partnerships provide resilience against macroeconomic headwinds.

Positive Factors

Strategic Partnership

The partnership with AZEK aims for significant revenue and cost synergies, enhancing market position and operational efficiency, which can drive long-term growth.

Product Innovation

Continued innovation in product offerings supports competitive advantage and market share expansion, fostering sustained demand and revenue growth.

Cash Flow Growth

Strong cash flow growth enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Challenging Market Conditions

Persistent macroeconomic challenges could hinder growth prospects, affecting demand and operational performance in key markets.

Raw Material Cost Pressures

Rising raw material costs can compress margins, impacting profitability and necessitating price adjustments or cost management strategies.

Decline in Volumes

Volume declines, especially in key markets, may signal weakening demand, potentially affecting revenue and market share.

James Hardie Industries PLC Business Overview & Revenue Model

Company Description

James Hardie Industries plc (JHX) is a global leader in the production of high-performance fiber cement and fiber gypsum building solutions. With a strong presence in the United States, Australia, New Zealand, and the Philippines, the company specializes in manufacturing durable and versatile building materials used primarily in exterior home siding and interior applications. James Hardie is renowned for its innovative products that offer resistance to fire, termites, and moisture, catering to both residential and commercial construction markets.

How the Company Makes Money

James Hardie makes money primarily through the manufacturing and sale of fiber cement and fiber gypsum products. The company's revenue model is centered around its portfolio of building materials, which includes products like HardiePlank siding, HardiePanel vertical siding, and HardieBacker cement board. These products are distributed through a network of distributors and retailers, reaching builders, contractors, and homeowners. A significant portion of the company's revenue comes from the residential construction sector, particularly in the United States, which is its largest market. Additionally, James Hardie benefits from strategic partnerships with builders and developers, leveraging its brand reputation and product innovation to maintain a competitive edge. The company's focus on sustainability and product performance also plays a crucial role in driving demand and, consequently, revenue.

James Hardie Industries PLC Financial Statement Overview

Summary

James Hardie demonstrates solid financial performance with strong profitability margins and effective cost control. Despite a slight revenue decline, the company maintains strong operational efficiency and cash flow conversion. The balance sheet reflects moderate leverage and effective use of equity.

Income Statement

James Hardie demonstrates solid profitability with a strong gross profit margin of 38.8% and a respectable net profit margin of 10.9% for 2025. However, revenue growth has been slightly negative at -1.5% from the previous year, indicating a slight decline in top-line growth. The EBIT margin of 16.9% and EBITDA margin of 23.3% suggest effective cost control and operational efficiency.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.56, reflecting moderate leverage. The return on equity (ROE) is strong at 19.6%, suggesting effective use of shareholders’ equity to generate profits. The equity ratio stands at 41.3%, indicating a healthy proportion of equity financing.

Cash Flow

Operating cash flow is robust, covering net income well with a ratio of 1.89. Free cash flow has decreased by -18.1% from the previous year, but remains positive, ensuring some flexibility. The free cash flow to net income ratio of 0.90 indicates sound cash conversion from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.12B	3.88B	3.94B	3.78B	3.61B	2.91B
Gross Profit	1.49B	1.50B	1.59B	1.31B	1.31B	1.05B
EBITDA	734.80M	902.60M	976.20M	933.10M	844.20M	594.80M
Net Income	192.10M	424.00M	510.20M	512.00M	459.10M	262.80M
Balance Sheet
Total Assets	14.07B	5.23B	4.91B	4.48B	4.24B	4.09B
Cash, Cash Equivalents and Short-Term Investments	772.00M	562.70M	365.00M	113.00M	125.00M	208.50M
Total Debt	5.24B	1.21B	1.20B	1.14B	955.50M	922.60M
Total Liabilities	7.75B	3.07B	3.05B	2.87B	2.91B	3.03B
Stockholders Equity	6.32B	2.16B	1.86B	1.61B	1.33B	1.06B
Cash Flow
Free Cash Flow	297.69M	380.60M	464.90M	16.30M	499.40M	676.20M
Operating Cash Flow	693.50M	802.80M	914.20M	607.60M	757.20M	786.90M
Investing Cash Flow	-4.38B	-446.70M	-470.50M	-660.10M	-348.20M	-120.40M
Financing Cash Flow	3.90B	-165.90M	-210.10M	-25.40M	-449.60M	-540.20M

James Hardie Industries PLC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.63
• 50DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JHX, the sentiment is Neutral. The current price of 18.63 is below the 20-day moving average (MA) of 19.16, below the 50-day MA of 19.88, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 45.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JHX.

James Hardie Industries PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CX	78 Outperform	$15.22B	10.87	7.10%	0.86%	-6.34%	210.97%
CRH	76 Outperform	£78.92B	24.52	15.21%	1.31%	4.28%	0.39%
JHX	72 Outperform	$10.31B	39.13	4.63%	―	4.60%	-52.56%
VMC	72 Outperform	$37.95B	34.13	13.56%	0.68%	6.54%	32.48%
MLM	68 Neutral	$36.46B	31.85	11.63%	0.54%	1.99%	-41.08%
EXP	67 Neutral	$6.77B	15.59	30.10%	0.48%	1.50%	-4.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

James Hardie Industries PLC Corporate Events

James Hardie Reports Q2 FY26 Results Amid AZEK Acquisition Impact

James Hardie Industries plc is a leading provider of exterior home and outdoor living solutions, specializing in fiber cement, fiber gypsum, and composite products. The company operates globally, with a strong presence in North America, Europe, Australia, and New Zealand.

James Hardie Reports Q1 FY26 Results Amid AZEK Acquisition

James Hardie Industries PLC is a leading provider of exterior home and outdoor living solutions, specializing in fiber cement and other building materials, with a global presence in North America, Europe, Australia, and New Zealand.