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James Hardie Industries PLC (JHX)
NYSE:JHX
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James Hardie Industries PLC
(NYSE:JHX)
Rating:72Outperform
Price Target:
$31.00
▲(6.86% Upside)
Positive Factors
Growth Acceleration
Azek deal provides the catalyst to accelerate growth and re-rate higher with the primary listing moved to NYSE.
Market Position and Synergies
With complementary products and distribution networks, the combined entity is poised to accelerate material conversion, unlocking $350M in EBITDA synergies by 2030.
Valuation and Investor Interest
As U.S. long-only investors get comfortable with the AZEK combination and realize the upside potential, increased interest in the stock is expected.
Negative Factors
Housing Market Concerns
The buy-side is more cautious on the outlook due to new housing starts surprising to the downside recently.
James Hardie Industries PLC (JHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.22B
Dividend YieldN/A
Average Volume (3M)5.24M
Price to Earnings (P/E)29.6
Beta (1Y)1.49
Revenue Growth-1.59%
EPS Growth-15.58%
CountryUS
Employees5,679
SectorBasic Materials
Sector Strength60
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.36
Shares Outstanding578,601,800
10 Day Avg. Volume4,213,298
30 Day Avg. Volume5,243,022
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.62
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit7.11
Enterprise Value/Ebitda12.67
Forecast
1Y Price Target
$33.00Price Target Upside13.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
James Hardie Industries PLC Business Overview & Revenue Model
Company DescriptionJames 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 MoneyJames 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 Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q4-2025)
| % Change Since: ―|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
James Hardie demonstrated resilience and strategic foresight in a challenging market environment, with strong North American performance and strategic initiatives such as the combination with The AZEK Company. However, volume declines and cost pressures, along with cautious guidance, indicate challenges ahead.Q4-2025 Updates
Positive Updates
Strong North America Performance
Despite challenging market conditions, James Hardie delivered $2.9 billion in North America sales, with $1 billion of EBITDA, resulting in a 35% EBITDA margin, surpassing initial profitability commitments.
Successful Strategic Initiatives
The company announced multiyear national hard siding and trim exclusivity agreements with major homebuilders, demonstrating an effective focus on large homebuilders for market share expansion.
Expansion into New Markets
The strategic combination with The AZEK Company is expected to create a leading growth platform in building products, with a significant commercial synergy opportunity projected to deliver $500 million in revenue synergies.
Strong Financial Position
The company expects to generate robust annual free cash flow of greater than $1 billion post-synergies, with a focus on reducing leverage and returning capital to shareholders.
Negative Updates
Volume Decline in North America
North American net sales declined 2% year-over-year, driven by a 3% volume decline due to ongoing demand challenges in end markets, particularly in multifamily and interior products.
Raw Material Cost Pressures
The company faced raw material headwinds, particularly in cement and pulp, which impacted margins negatively.
Challenging Market Conditions in APAC and Europe
The Asia Pacific region saw a 31% volume decline, while Europe faced higher raw material and energy costs, impacting profitability.
Conservative Guidance Reflecting Macroeconomic Uncertainty
Guidance for FY '26 is cautious, with assumptions of mid-single-digit declines in market volumes due to macroeconomic headwinds and uncertainty.
Company Guidance
During the James Hardie Fiscal Fourth Quarter 2025 Earnings Conference Call, management provided guidance for fiscal year 2026 (FY '26). The company anticipates a challenging macroeconomic environment, including a mid-single-digit decline in North American market volumes. Nevertheless, they expect low single-digit net sales growth in North America due to strategic initiatives like double-digit volume growth in their ColorPlus product and a strong brand value proposition. James Hardie plans to maintain EBITDA margins at approximately 35% despite high single-digit raw material inflation. The combined company with The AZEK Company is projected to generate significant synergies, contributing to an expected $500 million in free cash flow for FY '26. Additionally, the company is focused on capturing a material conversion opportunity, investing in strategic growth, and maintaining disciplined capital expenditures, with a reduction to approximately $325 million in FY '26. The company remains committed to outperforming market expectations, leveraging key strategies across its global operations, and integrating the AZEK merger to enhance long-term financial performance.James Hardie Industries PLC Financial Statement Overview
Summary
James Hardie shows strong financial performance with solid profitability and efficient use of equity. Despite a slight revenue decline, the company maintains good operational margins and strong cash flow conversion. The balanced approach to leverage supports long-term stability.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.78
Positive
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.75
Positive
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.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.88B | 3.88B | 3.94B | 3.78B | 3.61B | 2.91B |
| Gross Profit | 1.50B | 1.50B | 1.59B | 1.31B | 1.31B | 1.05B |
| EBITDA | 844.73M | 902.60M | 976.07M | 934.24M | 844.20M | 594.80M |
| Net Income | 424.00M | 424.00M | 510.20M | 512.00M | 459.10M | 262.80M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.23B | 4.91B | 4.48B | 4.24B | 4.09B |
| Cash, Cash Equivalents and Short-Term Investments | 562.70M | 562.70M | 365.00M | 113.00M | 125.00M | 208.50M |
| Total Debt | 1.21B | 1.21B | 1.20B | 1.14B | 955.50M | 922.60M |
| Total Liabilities | 3.07B | 3.07B | 3.05B | 2.87B | 2.91B | 3.03B |
| Stockholders Equity | 2.16B | 2.16B | 1.86B | 1.61B | 1.33B | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 374.35M | 380.60M | 464.90M | 7.80M | 497.50M | 666.70M |
| Operating Cash Flow | 802.80M | 802.80M | 914.20M | 607.60M | 757.20M | 786.90M |
| Investing Cash Flow | -446.70M | -446.70M | -470.50M | -660.10M | -348.20M | -120.40M |
| Financing Cash Flow | -165.90M | -165.90M | -210.10M | -25.40M | -449.60M | -540.20M |
James Hardie Industries PLC Technical Analysis
Positive
29.01
Price Trends
24.95
Positive
26.44
Positive
30.51
Negative
Market Momentum
0.47
Negative
57.32
Neutral
73.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JHX, the sentiment is Positive. The current price of 29.01 is above the 20-day moving average (MA) of 27.65, above the 50-day MA of 24.95, and below the 200-day MA of 30.51, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 73.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JHX.
James Hardie Industries PLC Risk Analysis
James Hardie Industries PLC disclosed 1 risk factors in its most recent earnings report. James Hardie Industries PLC reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
James Hardie Industries PLC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | £74.56B | 23.17 | 15.22% | 1.29% | 3.85% | -0.93% | |
78 Outperform | $36.76B | 33.77 | 12.10% | 0.52% | 1.02% | -45.31% | |
76 Outperform | $38.53B | 40.76 | 11.89% | 0.67% | 0.19% | 4.33% | |
75 Outperform | $12.94B | 8.31 | 7.12% | 0.98% | -9.62% | 795.20% | |
74 Outperform | $7.58B | 17.20 | 31.87% | 0.43% | 0.88% | -4.17% | |
72 Outperform | $17.22B | 29.63 | 21.09% | ― | -1.59% | -15.58% | |
58 Neutral | HK$18.72B | 4.84 | -7.29% | 3.76% | -4.22% | -42.85% |
* Basic Materials Sector Average
Performance Comparison
JHX
James Hardie Industries PLC
28.90
0.55
1.94%
CX
Cemex SAB
8.64
2.07
31.51%
EXP
Eagle Materials
230.17
-18.49
-7.44%
MLM
Martin Marietta Materials
602.83
71.45
13.45%
VMC
Vulcan Materials
289.88
47.39
19.54%
CRH
CRH plc
111.53
27.84
33.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.