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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
▲(14.81%Upside)
Positive Factors
Acquisition
Buying AZEK will create one of the fastest-growing and highest-margin building products franchises, with secular growth from material conversion.
Synergies
Management has outlined $125 million of cost savings and $500 million of revenue synergies, expected to yield significant EBITDA gains.
Value Unlock
AZEK acquisition and U.S. listing should unlock significant value.
Negative Factors
Market Reaction
JHX was -10% in Australia on the news as investors there might not understand the composite decking opportunity.
James Hardie Industries PLC (JHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.61B
Dividend YieldN/A
Average Volume (3M)7.53M
Price to Earnings (P/E)27.6
Beta (1Y)1.48
Revenue Growth-1.59%
EPS Growth-15.58%
CountryUS
Employees5,679
SectorBasic Materials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.36
Shares Outstanding578,601,800
10 Day Avg. Volume4,672,995
30 Day Avg. Volume7,525,887
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.00Price Target Upside18.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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
The earnings call reflects a mixed sentiment with strong strategic moves and product performance being offset by regional market challenges and volume declines. While the strategic combination with The AZEK Company and product innovations provide a positive outlook, ongoing macroeconomic headwinds and segment-specific challenges present significant hurdles.Q4-2025 Updates
Positive Updates
North America EBIT Margin
James Hardie achieved a North America EBIT margin of 29.4% in FY '25, showcasing strong cost management through the Hardie operating system.
Record Q4 Sales in Europe
Europe achieved record Q4 sales, with a 5% increase in U.S dollars and 8% in euros, highlighting strong growth in high value products.
Strategic Partnership with The AZEK Company
Announced a strategic combination with The AZEK Company to create a leading growth platform in building products, expecting $500 million in commercial synergies and $125 million in cost synergies.
Strong Free Cash Flow Guidance
James Hardie expects to generate over $500 million in free cash flow in FY '26, a more than 30% increase from FY '25.
Successful Product Innovations
Product innovations such as ColorPlus and TimberHue have driven growth, with ColorPlus achieving double-digit growth in FY '25.
Negative Updates
Decline in North American Volumes
North America experienced a 3% decline in volumes in Q4 2025, driven by a low-double-digit decline in interior products.
Challenging Market Conditions in Asia Pacific
Asia Pacific segment net sales declined by 17% in U.S dollars and volumes decreased by 31% due to the closure in the Philippines.
Macroeconomic Headwinds
James Hardie anticipates continued macroeconomic headwinds, including more recent economic uncertainty that could impact home construction costs and demand.
Multifamily and Interiors Segment Challenges
Multifamily volumes fell over 20%, and interior product volumes declined high single digits, reflecting softness in the discretionary remodeling market.
Company Guidance
During the James Hardie Fiscal Fourth Quarter 2025 Earnings Conference Call, management provided guidance for FY '26 amidst a challenging market environment. They anticipate a mid-single-digit decline in North American market volumes, yet expect to achieve low single-digit net sales growth, bolstered by double-digit growth in ColorPlus volumes. The company projects a stable EBITDA margin of approximately 35%, despite high single-digit raw material inflation, supported by cost savings and favorable ASP. Globally, they expect consolidated adjusted EBITDA to grow by low single digits and forecast free cash flow to rise by over 30% to at least $500 million, driven by reduced capital expenditures and diligent working capital management. James Hardie also emphasized their strategic combination with The AZEK Company, projecting the merger to enhance growth, profitability, and cash flow, with anticipated $500 million in commercial synergies and $125 million in cost synergies over the next few years.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 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.88B | 3.94B | 3.78B | 3.61B | 2.91B |
| Gross Profit | 1.50B | 1.59B | 1.31B | 1.31B | 1.05B |
| EBITDA | 902.60M | 976.07M | 934.24M | 844.20M | 594.80M |
| Net Income | 424.00M | 510.20M | 512.00M | 459.10M | 262.80M |
Balance Sheet | |||||
| Total Assets | 5.23B | 4.91B | 4.48B | 4.24B | 4.09B |
| Cash, Cash Equivalents and Short-Term Investments | 562.70M | 365.00M | 113.00M | 125.00M | 208.50M |
| Total Debt | 1.21B | 1.20B | 1.14B | 955.50M | 922.60M |
| Total Liabilities | 3.07B | 3.05B | 2.87B | 2.91B | 3.03B |
| Stockholders Equity | 2.16B | 1.86B | 1.61B | 1.33B | 1.06B |
Cash Flow | |||||
| Free Cash Flow | 380.60M | 464.90M | 7.80M | 497.50M | 666.70M |
| Operating Cash Flow | 802.80M | 914.20M | 607.60M | 757.20M | 786.90M |
| Investing Cash Flow | -446.70M | -470.50M | -660.10M | -348.20M | -120.40M |
| Financing Cash Flow | -165.90M | -210.10M | -25.40M | -449.60M | -540.20M |
James Hardie Industries PLC Technical Analysis
Negative
27.00
Price Trends
24.95
Positive
26.44
Positive
30.51
Negative
Market Momentum
0.52
Negative
40.29
Neutral
63.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JHX, the sentiment is Negative. The current price of 27 is above the 20-day moving average (MA) of 26.09, above the 50-day MA of 24.95, and below the 200-day MA of 30.51, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | £66.61B | 20.85 | 15.72% | 0.02% | 2.11% | 3.37% | |
78 Outperform | $35.68B | 38.30 | 12.10% | 0.70% | -2.24% | 3.00% | |
77 Outperform | $7.38B | 16.43 | 33.52% | 0.44% | 0.05% | 0.96% | |
75 Outperform | $12.69B | 8.19 | 7.12% | 1.00% | -9.62% | 795.20% | |
72 Outperform | $15.61B | 27.57 | 21.09% | ― | -1.59% | -15.58% | |
69 Neutral | $34.72B | 33.11 | 11.88% | 0.55% | -0.54% | -48.61% | |
44 Neutral | AU$1.48B | -6.20 | -41.37% | 4.09% | -3.52% | -43.04% |
* Basic Materials Sector Average
Performance Comparison
JHX
James Hardie Industries PLC
27.00
-1.35
-4.76%
CX
Cemex SAB
8.41
2.22
35.86%
EXP
Eagle Materials
220.92
-43.55
-16.47%
MLM
Martin Marietta Materials
575.88
-5.71
-0.98%
VMC
Vulcan Materials
270.11
2.16
0.81%
CRH
CRH plc
98.54
15.76
19.03%
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.