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James Hardie Industries Se (JHX)
NYSE:JHX
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James Hardie
(NYSE:JHX)
Rating:68Neutral
Price Target:―
Positive Factors
Acquisition and Synergies
The acquisition combines two secular growth stories with significant synergies from cost and sales given overlapping contractors.
US Stock Listing
An upgrade from a US ADR to a full US listing could significantly increase JHX's trading multiple, as seen in similar moves by other companies.
Negative Factors
Cash Flow Allocation
A portion of the company's cash flow is allocated to fund an Australia Asbestos Trust, which requires annual payments.
Market Reaction
JHX was -10% in Australia on the news as investors there might not understand the composite decking opportunity.
James Hardie (JHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.21B
Dividend YieldN/A
Average Volume (3M)3.67M
Price to Earnings (P/E)26.4
Beta (1Y)1.44
Revenue Growth1.26%
EPS Growth-17.38%
CountryUS
Employees5,679
SectorBasic Materials
Sector Strength62
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.36
Shares Outstanding429,856,480
10 Day Avg. Volume6,325,517
30 Day Avg. Volume3,665,186
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)5.27
Price to Sales (P/S)0.00
P/FCF Ratio30.61
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit7.60
Enterprise Value/Ebitda3.08
Forecast
1Y Price Target
$28.00Price Target Upside8.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
James Hardie Business Overview & Revenue Model
Company DescriptionJames Hardie Industries plc (JHX) is a global leader in the manufacturing of fiber cement products, primarily used in exterior and interior building construction. Headquartered in Ireland, the company operates in various international markets, including North America, Europe, and Asia-Pacific. James Hardie's core products include a wide range of durable, low-maintenance, and aesthetically pleasing fiber cement siding and backer board solutions, designed for residential and commercial applications.
How the Company Makes MoneyJames Hardie makes money through the sale of its fiber cement products, which are manufactured and distributed to builders, architects, and homeowners across the globe. The company's revenue model is heavily reliant on the construction and remodeling sectors, where its products are favored for their durability, versatility, and aesthetic appeal. Key revenue streams include the sale of exterior siding products, which are often chosen for new home constructions and renovations, and interior products like backer boards used in wet areas such as bathrooms and kitchens. James Hardie has strategically positioned itself through extensive distribution networks and partnerships with major building materials distributors and retailers, ensuring its products are widely available and accessible in its target markets. Additionally, the company invests in research and development to innovate and enhance its product offerings, maintaining a competitive edge in the building materials industry.
James Hardie Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q4-2025)
| % Change Since: 4.16%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in North America, strategic growth initiatives including the AZEK partnership, and successful product innovations. However, challenging market conditions, volume declines, and raw material cost pressures presented significant obstacles. The guidance for FY '26 remains cautiously optimistic, indicating resilience despite headwinds.Q4-2025 Updates
Positive Updates
Solid North America Performance
Delivered 2.95 billion standard feet of volume in North America, with a North America EBIT margin of 29.4%, generating $2.9 billion in sales and $1 billion of EBITDA in FY '25.
Strategic Partnership with AZEK
Announced a combination with The AZEK Company to create a leading growth platform in building products, aiming for $500 million in revenue synergies and $125 million in cost synergies.
Successful Product Innovations
Innovative product solutions like ColorPlus saw double-digit growth in FY '25, with new products like TimberHue, Artisan Lab, and Statement Essentials enhancing market offerings.
Strong Financial Results
Achieved adjusted EBITDA of $269 million in Q4 and delivered a full-year adjusted EBITDA margin of 35% in North America.
Positive Outlook and Guidance
Guided for low single-digit net sales growth in North America in FY '26, with continued margin stability and expected free cash flow growth over 30% to at least $500 million.
Negative Updates
Challenging Market Conditions
Faced a more challenging macro environment with ongoing demand challenges, particularly in multifamily and interior product segments.
Decline in North American Volumes
Experienced a 3% decline in North American volumes in Q4, including a low-double-digit decline in interior products.
Raw Material Cost Pressures
Continued to face raw material headwinds, particularly in cement and pulp, affecting margins.
Softer European Market
European markets remained challenged, with a gradual path to recovery anticipated, especially in Germany.
Impact of Philippines Closure
Asia Pacific segment faced a 17% decline in net sales due to the closure of Philippines operations.
Company Guidance
During the James Hardie Fiscal Fourth Quarter 2025 Earnings Conference Call, the company provided guidance for fiscal year 2026, assuming continued macroeconomic headwinds. In North America, the company prudently plans for a mid-single-digit decline in market volumes but expects low single-digit net sales growth, driven by the strength of the James Hardie brand and its value proposition. This includes the continuation of double-digit volume growth from single-family ColorPlus products. The company anticipates maintaining a stable EBITDA margin of approximately 35% for North America, despite high single-digit raw material inflation. James Hardie aims for consolidated adjusted EBITDA growth by low single digits and free cash flow of at least $500 million, an increase of over 30% compared to fiscal year 2025. This outlook is supported by strong cash flow generation, effective working capital management, and reduced capital expenditures, highlighting the company's strategic investment in growth and market outperformance.James Hardie Financial Statement Overview
Summary
James Hardie shows strong financial health with consistent revenue growth and robust profit margins. A solid debt-to-equity ratio and strong cash flow metrics highlight prudent financial management, although there's potential for enhanced equity to improve resilience.Income Statement
James Hardie demonstrates strong financial performance with consistent revenue growth and robust profit margins. The Gross Profit Margin for the TTM stands at 39.43%, and the Net Profit Margin is 11.15%. Revenue has increased steadily from 2020 to 2024, indicating effective market capture and operational efficiency. Notably, the EBIT and EBITDA margins remain strong at 17.33% and 23.11% respectively, showcasing the company's ability to manage costs and generate profit.80
Positive
Balance Sheet
The company maintains a solid financial position with a manageable Debt-to-Equity Ratio of 0.57, indicating prudent use of leverage. Return on Equity for the TTM is 20.76%, reflecting effective management of shareholders' equity to generate profits. The Equity Ratio of 42.81% suggests a stable financing structure, although there's room for improving the equity base to enhance financial stability.75
Positive
Cash Flow
James Hardie exhibits a healthy cash flow profile with a positive Free Cash Flow growth rate. The Operating Cash Flow to Net Income Ratio of 1.87 indicates strong cash generation relative to accounting profits. Additionally, the Free Cash Flow to Net Income Ratio stands at 0.83, reflecting efficient capital expenditure management. These metrics highlight the company's ability to generate cash and fund operations without relying heavily on external financing.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.91B | 3.94B | 3.78B | 3.61B | 2.91B | 2.61B | Gross Profit |
| 1.54B | 1.59B | 1.31B | 1.31B | 1.05B | 933.70M | EBIT |
| 677.80M | 767.40M | 741.40M | 682.60M | 472.80M | 488.10M | EBITDA |
| 903.93M | 976.07M | 934.24M | 844.20M | 594.80M | 473.69M | Net Income Common Stockholders |
| 436.00M | 510.20M | 512.00M | 459.10M | 262.80M | 241.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 645.30M | 365.00M | 113.00M | 125.00M | 208.50M | 207.40M | Total Assets |
| 4.82B | 4.91B | 4.48B | 4.24B | 4.09B | 4.03B | Total Debt |
| 1.22B | 1.20B | 1.14B | 955.50M | 922.60M | 1.41B | Net Debt |
| 768.40M | 836.00M | 1.03B | 830.50M | 714.10M | 1.27B | Total Liabilities |
| 2.92B | 3.05B | 2.87B | 2.91B | 3.03B | 2.99B | Stockholders Equity |
| 1.90B | 1.86B | 1.61B | 1.33B | 1.06B | 1.04B |
| Cash Flow | Free Cash Flow | ||||
| 361.75M | 464.90M | 7.80M | 497.50M | 666.70M | 247.90M | Operating Cash Flow |
| 815.73M | 914.20M | 607.60M | 757.20M | 786.90M | 451.20M | Investing Cash Flow |
| -467.27M | -470.50M | -660.10M | -348.20M | -120.40M | -203.80M | Financing Cash Flow |
| -240.83M | -210.10M | -25.40M | -449.60M | -540.20M | -179.00M |
James Hardie Technical Analysis
Positive
25.76
Price Trends
23.63
Positive
27.81
Negative
31.40
Negative
Market Momentum
0.26
Negative
58.10
Neutral
92.62
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 25.76 is above the 20-day moving average (MA) of 24.56, above the 50-day MA of 23.63, and below the 200-day MA of 31.40, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 92.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JHX.
James Hardie Risk Analysis
James Hardie disclosed 1 risk factors in its most recent earnings report. James Hardie 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 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $62.56B | 19.58 | 15.72% | 1.65% | 2.11% | 3.37% | |
78 Outperform | $34.98B | 37.55 | 12.10% | 0.72% | -2.24% | 3.00% | |
76 Outperform | $6.55B | 14.55 | 33.52% | 0.50% | 0.64% | -1.15% | |
75 Outperform | $33.24B | 31.70 | 11.88% | 0.56% | -0.54% | -48.61% | |
72 Outperform | $10.24B | 6.97 | 6.58% | 1.23% | -8.41% | 570.14% | |
68 Neutral | $11.21B | 26.36 | 21.05% | ― | 1.26% | -17.38% | |
51 Neutral | $2.02B | -1.14 | -21.37% | 3.64% | 2.88% | -30.57% |
* Basic Materials Sector Average
Performance Comparison
JHX
James Hardie
25.76
-4.91
-16.01%
CX
Cemex SAB
6.73
0.14
2.12%
EXP
Eagle Materials
201.89
-22.78
-10.14%
MLM
Martin Marietta Materials
554.48
5.38
0.98%
VMC
Vulcan Materials
264.81
18.88
7.68%
CRH
CRH plc
93.18
14.97
19.13%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.