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James Hardie Industries PLC
(NYSE:JHX)
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Rating:66Neutral
Price Target:
$28.00
▼(-7.71% Downside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by mixed financial performance—healthy revenue growth and improving recent free cash flow, but materially weaker margins/ROE and weak cash conversion. Technicals are supportive with a clear uptrend and positive momentum. Offsetting these strengths, valuation is a major headwind given the very high P/E, while the latest earnings call was broadly positive due to raised guidance and deleveraging progress despite acknowledged cost and macro risks.
Positive Factors
Fiber Cement and International Growth
Strong fiber cement growth in North America, supported by product initiatives, demonstrates continued adoption of the core offering. Growth across Australia, New Zealand, and Europe also broadens the revenue base and supports more durable expansion across regional construction markets.
Negative Factors
Material Profitability Deterioration
The sharp decline in net and EBIT margins means revenue growth is currently producing much less earnings than in prior periods. Although gross margin is relatively stable, weaker operating profitability reduces earnings resilience and makes sustained returns dependent on successful cost and pricing actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiber Cement and International Growth
Strong fiber cement growth in North America, supported by product initiatives, demonstrates continued adoption of the core offering. Growth across Australia, New Zealand, and Europe also broadens the revenue base and supports more durable expansion across regional construction markets.
Read all positive factors
James Hardie Industries PLC (JHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.11B
Dividend Yield2.7%
Average Volume (3M)11.52M
Price to Earnings (P/E)103.0
Beta (1Y)1.33
Revenue Growth42.93%
EPS Growth-67.45%
CountryUS
Employees7,500
SectorGeneral
Sector StrengthN/A
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.25
Shares Outstanding580,522,460
10 Day Avg. Volume7,308,051
30 Day Avg. Volume11,516,016
Financial Highlights & Ratios
PEG Ratio-1.24
Price to Book (P/B)1.60
Price to Sales (P/S)2.12
P/FCF Ratio49.84
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue3.56
Enterprise Value/Gross Profit9.93
Enterprise Value/Ebitda17.97
Forecast
1Y Price Target
$33.65Price Target Upside10.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.32
Revenue Forecast (FY)$5.48B
James Hardie Industries PLC Business Overview & Revenue Model
Company Description
James Hardie Industries plc (JHX) operates as a prominent global producer and supplier of construction materials, focusing on fiber cement, fiber gypsum, and cement-bonded solutions. These products are utilized for both internal and external build...
How the Company Makes Money
James Hardie makes money by manufacturing building products—primarily fiber cement siding and related exterior solutions—and selling them through building-product distribution channels to the construction and renovation ecosystem. Revenue is gener...
James Hardie Industries PLC Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call communicated a strong operational quarter with revenue, margin and free cash flow beats, an upward revision to full-year outlook, meaningful progress on integration synergies and a clear distribution expansion (notably the Boise partnership). These positives are tempered by ongoing cost inflation (notably freight), deck segment seasonality and transition-related investments, and a cautious macro housing backdrop. Overall the company demonstrated clear execution and deleveraging progress while acknowledging near-term headwinds and conservative back-half planning.Positive Updates
Quarterly Revenue Beat
Total net sales of $1.47 billion in Q1, up 64% reported and 12% pro forma year-over-year, above the high end of original guidance.
Negative Updates
Deck, Rail & Accessories Sales Decline
Deck, Rail & Accessories net sales of $305.1 million, down 5% year-over-year, driven by planned channel inventory normalization (not underlying category weakness).
Read all updates
Q1-2027 Updates
Positive
Negative
Quarterly Revenue Beat
Total net sales of $1.47 billion in Q1, up 64% reported and 12% pro forma year-over-year, above the high end of original guidance.
Read all positive updates
Company Guidance
After a stronger-than-expected Q1 (pro forma net sales +12%, adjusted EBITDA $422M, margin 28.6%), management raised its fiscal 2027 outlook: Q2 net sales $1.485B–$1.575B (growth 14.9%–21.9%) with adjusted EBITDA $420M–$455M (Deck, Rail & Accessories expected +~40% YoY in Q2, ~1/3 of that tied to new distribution partners); full-year net sales $5.564B–$5.723B (pro forma growth 5.9%–9%) and adjusted EBITDA $1.536B–$1.625B, with free cash flow >$500M and capex ~6%–7% of sales. Key modeling metrics: adjusted effective tax rate ~21.7%, weighted average diluted shares ~584M, adjusted net interest ~ $60M/quarter (Q1 $64.8M), current net leverage 2.7x after a $400M note redemption and targets of ~2.4x by FY-end 2027 and <2.0x by FY Q2 2028, company is holding $80M–$100M of FY27 cost pressure (~2/3 in North America), and going forward share‑based compensation (previously ~ $50M annual; Q1 ~$15M) will be excluded from adjusted EBITDA.James Hardie Industries PLC Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.41B | 4.84B | 3.88B | 3.94B | 3.78B | 3.61B |
| Gross Profit | 1.94B | 1.73B | 1.50B | 1.59B | 1.31B | 1.31B |
| EBITDA | 1.07B | 931.30M | 902.60M | 976.20M | 933.10M | 844.20M |
| Net Income | 145.70M | 104.00M | 424.00M | 510.20M | 512.00M | 459.10M |
Balance Sheet | ||||||
| Total Assets | 13.49B | 13.69B | 5.23B | 4.91B | 4.48B | 4.24B |
| Cash, Cash Equivalents and Short-Term Investments | 289.90M | 542.90M | 562.70M | 365.00M | 113.00M | 125.00M |
| Total Debt | 4.52B | 4.79B | 1.21B | 1.20B | 1.14B | 955.50M |
| Total Liabilities | 6.95B | 7.26B | 3.07B | 3.05B | 2.87B | 2.91B |
| Stockholders Equity | 6.54B | 6.43B | 2.16B | 1.86B | 1.61B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 353.48M | 205.90M | 380.60M | 464.90M | 16.30M | 499.40M |
| Operating Cash Flow | 726.16M | 589.80M | 802.80M | 914.20M | 607.60M | 757.20M |
| Investing Cash Flow | -4.23B | -4.21B | -446.70M | -470.50M | -660.10M | -348.20M |
| Financing Cash Flow | 1.71B | 3.35B | -165.90M | -210.10M | -25.40M | -449.60M |
James Hardie Industries PLC Technical Analysis
Positive
30.34
Price Trends
27.29
Negative
26.68
Negative
24.28
Positive
Market Momentum
-0.18
Negative
49.41
Neutral
79.17
Neutral
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 30.34 is above the 20-day moving average (MA) of 25.45, above the 50-day MA of 27.29, and above the 200-day MA of 24.28, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JHX.
James Hardie Industries PLC Risk Analysis
James Hardie Industries PLC disclosed 34 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.97B | 22.55 | 35.36% | 0.82% | 8.57% | 8.25% | |
70 Outperform | $5.05B | 29.51 | 17.38% | ― | 6.97% | -2.53% | |
66 Neutral | $15.11B | 103.05 | 2.27% | 2.70% | 42.93% | -67.45% | |
61 Neutral | $21.46B | 24.15 | 10.79% | 1.68% | 5.09% | 1.61% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $6.05B | 61.10 | 2.46% | ― | -9.38% | -86.05% | |
51 Neutral | $9.03B | -14.04 | -17.10% | 2.77% | -11.79% | -310.77% |
* General Sector Average
JHX
James Hardie Industries PLC
26.02
4.04
18.38%
AWI
Armstrong World
164.82
-36.26
-18.03%
BLDR
Builders Firstsource
56.21
-66.98
-54.37%
OC
Owens Corning
114.26
-9.88
-7.96%
TREX
Trex Company
49.57
-0.16
-0.32%
AMRZ
Amrize Ltd
39.24
-10.03
-20.36%
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.