James Hardie Industries plc (JHX)
Valuation Overview•Is James Hardie Industries plc Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 42/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
JHX demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company demonstrates solid revenue growth (8.6% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 13.3%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.4B | +24.7% | +8.6% | +10.7% | +10.8% | |
| EBITDA | $329.8M | — | -9.4% | — | — | |
| Net Income | $28.5M | -75.5% | -41.2% | — | -8.2% | |
| EPS (Diluted) | $0.05 | -80.6% | -45.1% | -20.3% | -10.1% | |
| Free Cash Flow | $53.3M | -45.9% | +132.9% | -21.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 35.8% | 38.3% | 37.2% | 36.2% |
| Operating Margin | 13.3% | 15.2% | 16.8% | 15.9% |
| Net Margin | 2.2% | 8.7% | 10.5% | 10.1% |
| FCF Margin | 4.2% | 8.6% | 8.0% | 9.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.30 | $0.30 | -0.2% | ||
| Q1'26 | $0.23 | $0.24 | +4.3% | ||
| Q4'25 | $0.26 | $0.26 | +1.1% | ||
| Q3'25 | $0.33 | $0.29 | -13.2% | ||
| Q2'25 | $0.36 | $0.36 | +0.2% | ||
| Q1'25 | $0.35 | $0.36 | +4.3% | ||
| Q4'24 | — | $0.36 | — | ||
| Q3'24 | $0.39 | $0.41 | +5.7% |
Total return is +2.4% (1Y), lagging the benchmark by -22.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +19.5% | +10.2% | — |
| 1Y | +2.4% | -22.6% | — |
| 3YCAGR | -3.2% | -23.1% | — |
| 5YCAGR | -5.8% | -18.4% | +2.0% |
| 10YCAGR | +6.1% | -7.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about James Hardie Industries plc (JHX) valuation, health, and returns.
James Hardie Industries plc is estimated to be fairly valued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $0.00)
James Hardie Industries plc has multiple valuation anchors: DCF Intrinsic Value: $0.00 | Peer Relative Fair Value: $13.25 | Wall Street Analyst Target: $25.50 (implying +2.5% upside). A convergence of these signals offers higher conviction.
James Hardie Industries plc displays fair financial health with a composite quality score of 42/100, supported by a Altman Z-Score of 1.4 (distress zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of 4.9%.
James Hardie Industries plc does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
James Hardie Industries plc's current growth trajectory is Accelerating. The company achieved +24.7% 1Y revenue growth and -80.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +8.6%.
Wall Street consensus is Buy based on 16 analysts, beating EPS expectations in 75% of recent quarters with a -1-quarter streak. The consensus price target represents a +2.5% change from current levels.
Investment risks for James Hardie Industries plc include: -43.7% 1-year max drawdown, high beta (1.81x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.81x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.