James Hardie Industries PLC (JHX) AI Stock Analysis

• Market Cap: $11.67B
• Dividend Yield: N/A
• Average Volume (3M): 6.50M
• Price to Earnings (P/E): 42.7
• 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: 579,292,050
• 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: 1.33
• Enterprise Value/Revenue: 3.78
• Enterprise Value/Gross Profit: 10.42
• Enterprise Value/Ebitda: 21.18
• 1Y Price Target: $24.58
• Price Target Upside: 20.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $31.00 ▲(52.11% 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 Partnerships

The partnership with AZEK aims for significant revenue and cost synergies, enhancing competitive positioning and long-term growth potential.

Product Innovation

Continuous product innovation drives demand and strengthens market position, supporting sustained revenue growth and competitive advantage.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and resilience against economic headwinds.

Negative Factors

Challenging Market Conditions

Persistent macroeconomic challenges could pressure demand and revenue, impacting short to medium-term financial performance.

Raw Material Cost Pressures

Rising raw material costs can erode margins, affecting profitability and requiring effective cost management strategies.

Decline in North American Volumes

Volume declines in key markets may signal weakening demand, potentially impacting revenue and market share if trends persist.

James Hardie Industries PLC 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 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: 20.38
• 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 20.38 is above the 20-day moving average (MA) of 19.16, above 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	$16.92B	12.42	7.10%	0.76%	-6.34%	210.97%
EXP	77 Outperform	$7.27B	16.74	30.10%	0.45%	1.50%	-4.44%
VMC	77 Outperform	$39.10B	35.17	13.56%	0.66%	6.54%	32.48%
CRH	76 Outperform	$84.61B	25.15	15.21%	1.16%	4.28%	0.39%
MLM	73 Outperform	$37.89B	33.10	11.63%	0.51%	1.99%	-41.08%
JHX	72 Outperform	$11.67B	42.69	4.63%	―	4.60%	-52.56%
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.