James Hardie Industries plc (NYSE: JHX)

Sector: Basic Materials Industry: Building Materials CIK: 0001159152
Market Cap 11.15 Bn
P/B 1.74
P/E 93.63
P/S 2.53
ROIC (Qtr) 2.18
Div Yield % 0.00
Rev 1y % (Qtr) 30.05
Total Debt (Qtr) 4.86 Bn
Debt/Equity (Qtr) 0.76
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About

James Hardie Industries plc, or simply James Hardie, is a prominent player in the building products industry, identifiable on the stock market by the symbol JHX. The company's operations span the globe, providing essential construction materials for both residential and commercial buildings. James Hardie's business model revolves around the manufacture and sale of a variety of building products. These include fiber cement siding, roofing, and complementary accessories. The company's primary products are its fiber cement boards, which are marketed...

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Investment thesis

Bull case

  • Healthy cash reserves of 374.90M provide 4.64x coverage of short-term debt 80.80M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 600.80M provides strong 17.41x coverage of stock compensation 34.50M, indicating sustainable incentive practices.
  • Tangible assets of 5.46B provide robust 14.91x coverage of other current liabilities 365.80M, indicating strong asset backing.
  • Free cash flow of 317.40M provides robust 5.58x coverage of R&D expenses 56.90M, enabling sustainable innovation investment.
  • Retained earnings of 1.80B provide strong 4.92x coverage of other current liabilities 365.80M, indicating earnings quality.

Bear case

  • Operating cash flow of 600.80M barely covers its investment activities of (4.21B), with a coverage ratio of -0.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.21B) provide weak support for R&D spending of 56.90M, which is -74.06x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 390.80M show weak coverage of depreciation charges of 428.80M, with a 0.91 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 428.80M relative to operating cash flow of 600.80M, which is 0.71x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 317.40M represents just 0.09x of debt issuance 3.45B, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Building Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CRH Crh Public Ltd Co 82.74 Bn 24.11 2.24 20.15 Bn
2 VMC Vulcan Materials CO 39.95 Bn 35.72 5.07 4.87 Bn
3 MLM Martin Marietta Materials Inc 30.94 Bn 212.27 13.41 5.90 Bn
4 JHX James Hardie Industries plc 11.15 Bn 93.63 2.53 4.86 Bn
5 EXP Eagle Materials Inc 7.43 Bn 17.29 3.23 1.80 Bn
6 KNF Knife River Corp 5.32 Bn 35.87 1.75 1.24 Bn
7 USLM United States Lime & Minerals Inc 3.38 Bn 216.45 27.53 0.00 Bn
8 TTAM Titan America SA 3.19 Bn 19.19 1.95 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.15 1.41
EV to Cash from Ops. EV/CFO 26.31 23.36
EV to Debt EV to Debt 3.25 58.70
EV to EBIT EV/EBIT 40.45 27.99
EV to EBITDA EV/EBITDA 19.05 17.60
EV to Free Cash Flow [EV/FCF] EV/FCF 49.80 29.87
EV to Market Cap EV to Market Cap 1.42 0.53
EV to Revenue EV/Rev 3.59 4.30
Price to Book Value [P/B] P/B 1.74 5.38
Price to Earnings [P/E] P/E 93.63 46.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.53
Dividend per Basic Share Div per Share (Qtr) 0.00 0.43
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.56
Interest Coverage Int. cover (Qtr) 2.28 14.54
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 37.58 -813.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -32.75 438.80
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -5.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -51.95 -73.90
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.30 -66.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -42.35 -59.38
EBT Growth (1y) % EBT 1y % (Qtr) -67.23 -52.02
EPS Growth (1y) % EPS 1y % (Qtr) -73.27 -67.29
FCF Growth (1y) % FCF 1y % (Qtr) -13.77 -5.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.34 12.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.34 1.32
Current Ratio Curr Ratio (Qtr) 1.54 2.95
Debt to Equity Ratio Debt/Equity (Qtr) 0.76 0.52
Interest Cover Ratio Int Coverage (Qtr) 2.28 14.54
Times Interest Earned Times Interest Earned (Qtr) 2.28 14.54
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 18.60 -43.04
EBIT Margin % EBIT Margin % (Qtr) 8.87 -72.64
EBT Margin % EBT Margin % (Qtr) 4.98 -77.34
Gross Margin % Gross Margin % (Qtr) 35.90 30.03
Net Profit Margin % Net Margin % (Qtr) 2.70 -82.01