James Hardie Industries PLC (JHX)
NYSE:JHX
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James Hardie Industries PLC
(NYSE:JHX)
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Rating:46Neutral
Price Target:
$20.00
▼(-8.05% Downside)
Action:Reiterated
Date:05/21/26
The score is held back primarily by weaker FY2026 financial performance (sharp margin/earnings decline), significantly higher debt, and softer cash flow coverage. Technicals are broadly neutral with negative momentum indicators and price below longer-term averages. Valuation is a major constraint given the very high P/E. Offsetting these, the latest earnings call provided relatively supportive FY27 guidance and synergy-driven cash flow improvement targets.
Positive Factors
Large addressable market and strong brand momentum
James Hardie’s sizable exterior TAM ($23B) and measurable brand momentum (search volume ~40% CAGR; sample orders +15% annually) support durable demand capture. Strong brand equity aids specification by builders and contractors, enabling sustainable share gains across renovation and new-build markets.
Negative Factors
Sharp profitability deterioration in FY2026
A dramatic drop in net margin and earnings indicates earnings quality deterioration from cost, integration or non-operating pressures. Persistently lower profitability reduces internal funding, lengthens payback on investments and raises sensitivity to further cost or volume shocks in a cyclical end market.
Read all positive and negative factors
Positive Factors
Negative Factors
Large addressable market and strong brand momentum
James Hardie’s sizable exterior TAM ($23B) and measurable brand momentum (search volume ~40% CAGR; sample orders +15% annually) support durable demand capture. Strong brand equity aids specification by builders and contractors, enabling sustainable share gains across renovation and new-build markets.
Read all positive factors
James Hardie Industries PLC (JHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.08B
Dividend YieldN/A
Average Volume (3M)7.25M
Price to Earnings (P/E)98.7
Beta (1Y)1.32
Revenue Growth24.71%
EPS Growth-77.97%
CountryUS
Employees5,679
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.22
Shares Outstanding580,314,600
10 Day Avg. Volume8,106,503
30 Day Avg. Volume7,245,176
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)1.60
Price to Sales (P/S)2.12
P/FCF Ratio49.84
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue3.42
Enterprise Value/Gross Profit9.57
Enterprise Value/Ebitda24.40
Forecast
1Y Price Target
$27.67Price Target Upside27.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.2
Revenue Forecast (FY)$5.40B
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, Austra...
How the Company Makes Money
James Hardie makes money primarily by manufacturing and selling fiber cement and related building products to the construction supply chain. Revenue is generated from product sales into (1) new residential construction, where builders and contract...
James Hardie Industries PLC Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call presented a constructive operational and financial picture with strong consolidated revenue growth (driven by the AZEK acquisition), healthy adjusted EBITDA margins, clear synergy targets ($125M commercial run-rate and accelerated cost synergies), and an explicit plan to materially increase free cash flow (> $500M target for FY27). Management acknowledged near-term headwinds — organic fiber cement softness, weather-related disruptions (~$20M), inflationary cost pressure ($80–$100M), integration cash impacts, and a conservative Q1 outlook due to channel normalization — but provided concrete actions (HOS, plant optimization, combined salesforce, targeted regional initiatives) and credible early proof points (Midwest pilot, Lansing/CBUSA commercial wins) to support their FY27 guidance. On balance, the positive operational momentum, synergy progress, margin resilience and ambitious cash flow target outweigh the near-term macro and integration-related challenges.Positive Updates
Consolidated Revenue Growth Driven by AZEK Acquisition
Q4 total net sales of $1.4 billion, up 45% YoY (includes $445 million of acquired AZEK revenue). Full fiscal year net sales of $4.8 billion, up 25% YoY.
Negative Updates
Organic Revenue Declines in Fiber Cement
Organic net sales declined 1% in Q4 and 2% for the full year; the fiber cement business experienced organic volume declines during FY26 despite management expecting a return to growth in FY27.
Read all updates
Q4-2026 Updates
Positive
Negative
Consolidated Revenue Growth Driven by AZEK Acquisition
Q4 total net sales of $1.4 billion, up 45% YoY (includes $445 million of acquired AZEK revenue). Full fiscal year net sales of $4.8 billion, up 25% YoY.
Read all positive updates
Company Guidance
James Hardie guided fiscal 2027 net sales of $5.25–$5.41 billion (0–3% pro forma growth; 1–4% organic), adjusted EBITDA of $1.45–$1.50 billion (4.1–7.7% pro forma growth), and free cash flow in excess of $500 million (up from $314 million in FY26), with capital expenditures targeted at ~6–7% of sales; management assumes an addressable market decline of ~3% and models ~$80–$100 million of cost pressure (about two‑thirds in North America) offset in part by $25 million of annualized plant savings, accelerating cost synergies (roughly $35–$40 million incremental in FY27) and a $125 million run‑rate of commercial revenue synergies exiting the year. For Q1 FY27 the company expects net sales of $1.32–$1.35 billion (flat to +3% pro forma; +4.3–7.5% organic) and adjusted EBITDA of $354–$375 million, with segment Q1 sales guided to Siding & Trim $758–$781 million and Deck/Rail/Accessories $291–$300 million; weighted average diluted shares ~585 million and adjusted net interest ~ $65 million are expected to remain consistent.James Hardie Industries PLC Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
35
Negative
Cash Flow
45
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.84B | 3.88B | 3.94B | 3.78B | 3.61B |
| Gross Profit | 1.73B | 1.50B | 1.59B | 1.31B | 1.31B |
| EBITDA | 678.70M | 902.60M | 976.20M | 933.10M | 844.20M |
| Net Income | 104.00M | 424.00M | 510.20M | 512.00M | 459.10M |
Balance Sheet | |||||
| Total Assets | 13.69B | 5.23B | 4.91B | 4.48B | 4.24B |
| Cash, Cash Equivalents and Short-Term Investments | 542.90M | 562.70M | 365.00M | 113.00M | 125.00M |
| Total Debt | 4.79B | 1.21B | 1.20B | 1.14B | 955.50M |
| Total Liabilities | 7.26B | 3.07B | 3.05B | 2.87B | 2.91B |
| Stockholders Equity | 6.43B | 2.16B | 1.86B | 1.61B | 1.33B |
Cash Flow | |||||
| Free Cash Flow | 205.90M | 380.60M | 464.90M | 16.30M | 499.40M |
| Operating Cash Flow | 589.80M | 802.80M | 914.20M | 607.60M | 757.20M |
| Investing Cash Flow | -4.21B | -446.70M | -470.50M | -660.10M | -348.20M |
| Financing Cash Flow | 3.35B | -165.90M | -210.10M | -25.40M | -449.60M |
James Hardie Industries PLC Technical Analysis
Neutral
21.75
Price Trends
19.88
Negative
Market Momentum
-1.05
Positive
39.55
Neutral
45.56
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 21.75 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $32.30B | 5.87 | 25.07% | 0.51% | -1.28% | 140.98% | |
70 Outperform | $19.01B | 1.84 | 3.40% | 0.74% | 5.01% | -67.33% | |
70 Outperform | $67.51B | -97.60 | 23.51% | ― | 6.33% | 14.09% | |
68 Neutral | $34.01B | 54.27 | 13.10% | 0.67% | 7.41% | 19.13% | |
65 Neutral | $6.16B | 13.99 | 28.27% | 0.47% | 2.13% | -4.85% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
46 Neutral | $12.08B | 98.67 | 1.94% | ― | 24.71% | -77.97% |
* Basic Materials Sector Average
JHX
James Hardie Industries PLC
20.76
-7.59
-26.77%
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12.56
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77.88%
EXP
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199.43
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MLM
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536.48
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-3.98%
VMC
Vulcan Materials
260.65
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-2.10%
CRH
CRH plc
100.37
7.58
8.17%
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.