One-glance verdict
Overvalued
$8.34 our estimate vs market $27.24
Wall Street consensus: $34.50 (313.7% higher than our fair-value estimate)
227% above our estimate, beyond the bull case
Fundamentals snapshot
James Hardie Industries plc
JHX · NYQ · Basic Materials · Building Materials
Current price
$27.24
52-week range
$16.46 - $31.43
Market cap
$15.81B
Balance sheet
Stretched
3.13x Stretched
Net debt $4.23B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 110.7% last year.
- Reward Returns 3.3% on equity, ahead of 80% of its peers.
- Risk Net debt grew 340.5% over 3 years.
- Risk Stock trades 145.6% above its 5-year average P/E.
What this company does
James Hardie Industries plc
James Hardie Industries plc makes building materials like siding and trim for homes, mainly from fiber cement. Their money comes from selling these products to builders and remodelers across North America, Australia, and Europe, which matters because it shows how much activity is happening in the housing market. They also sell deck and railing products, and boards for interiors and exteriors, all aimed at making homes look good and last longer.
How the company got here
James Hardie Industries plc has a long history, dating back to 1888 when it was founded in Australia. Initially focused on asbestos cement products, the company underwent a significant transformation due to health concerns associated with asbestos. This led to a strategic shift towards developing and manufacturing safer, innovative building materials. Over the decades, James Hardie has become a global leader in fiber cement technology, expanding its reach across North America, Europe, and Australasia through both organic growth and strategic acquisitions.
What it actually does
James Hardie Industries plc makes and sells building materials used in homes and commercial buildings. Think of the siding on the outside of a house, the trim around windows and doors, or even interior walls and floors. Their products are designed to be durable, attractive, and resistant to things like fire, water, and pests, offering an alternative to traditional materials like wood or vinyl. These materials are sold to builders, remodelers, and contractors who use them in new construction projects or when fixing up existing properties.
Siding & Trim
This is a major part of James Hardie's business, focusing on the exterior and interior finishing of homes. They produce fiber cement siding, which is the material that covers the outside walls of many houses, giving them their look and protection from the elements. They also make trim, which are the decorative and functional pieces around windows, doors, and corners. These products are used in both newly built homes and in projects where older homes are being updated or repaired. This segment is a significant contributor to the company's overall sales.
Deck, Rail & Accessories
This segment offers products for outdoor living spaces, moving beyond just walls and roofs. It includes decking materials, which are the boards used for patios and outdoor platforms, as well as railings that go around them. They also provide accessories like pergolas (outdoor shaded structures) and cabanas. These products are often designed as alternatives to traditional wood, offering more durability and less maintenance. This part of the business caters to homeowners looking to enhance their outdoor areas.
Australia & New Zealand
This segment represents James Hardie's home market, where it manufactures and sells a wide range of fiber cement building products. These include exterior cladding (the outer layer of walls), interior wall linings, flooring, and materials for eaves and soffits (the underside of roof overhangs). The products are used in both residential homes and commercial buildings for new construction and renovation projects. This region is a core part of the company's identity and a consistent revenue generator.
Europe
In Europe, James Hardie operates with a slightly different product focus, manufacturing gypsum and cement-bonded boards under the fermacell brand, alongside their traditional fiber cement products sold under the Hardie brand. These materials are used for interior walls, ceilings, and floors in both residential and commercial buildings. The segment serves markets undergoing new construction, renovation, and repair, providing versatile building solutions across various European countries.
What management is betting on now
Management is focused on growing market share by emphasizing the benefits of their durable and low-maintenance products, especially in the repair and remodel sector. They are also investing in innovation to develop new product lines and improve existing ones, aiming to capture more value. Expanding their reach in key markets and improving operational efficiency to manage costs are also priorities. The company aims to capitalize on trends like increased home renovation and the demand for sustainable building materials.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$380.60M
FY2026 Q1
$103.70M
FY2026 Q4
$102.20M
FY2027 Q1
$254.20M
Revenue
$1.47B
Net income
$104.30M
Diluted EPS
0.18
Operating cash flow
$344.00M
Free cash flow
$254.20M
Fetching…
Sources
Revenue
$3.94B
Net income
$41.40M
Diluted EPS
0.04
Operating cash flow
$382.90M
Free cash flow
$102.20M
Fetching…
Sources
Revenue
$899.90M
Net income
$62.60M
Diluted EPS
0.15
Operating cash flow
$206.90M
Free cash flow
$103.70M
Fetching…
Sources
Revenue
$3.88B
Net income
$424.00M
Diluted EPS
0.98
Operating cash flow
$802.80M
Free cash flow
$380.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.34 vs current price $27.24
Wall Street consensus is the average analyst price target: $34.50 (313.7% higher than our fair-value estimate).
Our most-likely fair value is $8.34 a share — about 69.4% below today's price of $27.24, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $4.2B. Interest coverage 3.1x.
Net debt
$4.23B
Interest coverage
3.13x
James Hardie Industries plc's profit covers its interest bill about 3.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
JHX
BASELINE
James Hardie Industries plc
Total debt $4.52B Interest coverage 3.13x This is the baseline the peer rows are being compared against.
Total debt $5.73B Interest coverage 6.11x +95% vs JHX Carries about 2.0x more debt cushion than JHX.
Total debt $377.00M Interest coverage 18.50x +492% vs JHX Carries about 5.9x more debt cushion than JHX.
Total debt $5.88B Interest coverage -1.23x -100% vs JHX This peer has almost no interest-payment cushion compared with JHX.
Total debt $447.65M Interest coverage -5.38x -100% vs JHX This peer has almost no interest-payment cushion compared with JHX.
What you should know
The case for and against JHX
3 Rewards
3 Risks
Rewards
-
Revenue grew 110.7% last year.
-
Returns 3.3% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Net debt grew 340.5% over 3 years.
-
Stock trades 145.6% above its 5-year average P/E.
-
Insider ownership is only 0.4% (peer median: 6.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
108.96x
Forward P/E
17.28x
P/B
2.42x
P/S
2.92x
EV/EBITDA
13.87x
PEG ratio
1.24x
Profitability
How much profit each dollar creates
Gross margin
36.8%
Operating margin
16.1%
Net margin
2.7%
ROE
3.3%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.69x
Current ratio
1.59x
Quick ratio
0.71x
Total debt
$4.52B
Total cash
$289.90M
Growth
How the business has been compounding
Revenue TTM
$10.19B
Revenue 5Y CAGR
7.5%
EPS TTM
0.25
EPS 5Y CAGR
-45.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.74B
Free CF TTM
$205.90M
FCF margin
2.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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