James Hardie (JHX) AI Stock Analysis

• Market Cap: $11.53B
• Dividend Yield: N/A
• Average Volume (3M): 5.86M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.48
• Revenue Growth: -1.59%
• EPS Growth: -15.58%
• Country: US
• Employees: 5,679
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Construction Materials
• EPS (TTM): 0.36
• Shares Outstanding: 429,866,360
• 10 Day Avg. Volume: 7,178,019
• 30 Day Avg. Volume: 5,864,351
• PEG Ratio: 0.44
• Price to Book (P/B): 5.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -305.12
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 4.70
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $32.00
• Price Target Upside: 19.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $31.00 ▲(15.28%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

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 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 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.

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	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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 26.89 is above the 20-day moving average (MA) of 25.77, above the 50-day MA of 24.67, and below the 200-day MA of 30.64, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 85.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JHX.

James Hardie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	78 Outperform	$34.96B	37.53	12.10%	0.74%	-2.24%	3.00%
EXP	76 Outperform	$6.82B	15.18	33.52%	0.48%	0.05%	0.96%
JHX	72 Outperform	$11.53B	27.52	21.05%	―	-1.59%	-15.58%
CX	72 Outperform	$10.70B	7.36	6.58%	1.26%	-8.41%	570.14%
MLM	70 Outperform	$33.62B	32.06	11.88%	0.57%	-0.54%	-48.61%
Sector *	44 Neutral	C$967.22M	-6.71	-13.35%	2.72%	17.20%	-32.62%
CRH		£46.21B	18.60	15.72%	1.35%	―	―