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James Hardie Industries PLC JHX

Morningstar Rating
A$47.08 −0.77 (1.60%)
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Company Report

James Hardie's Result Breaks Records, but Weaker Near-Term Outlook Expected

James Hardie's growth strategy includes marketing directly to homeowners, market share growth, and category expansion. We view this as rational and achievable, given past success. We estimate Hardie has about 90% market share in the fiber cement category in its main geography of North America, which contributes about 80% of group operating income. About two-thirds of North American EBIT is from repair and renovation, or R&R, and the remainder is from new house construction. We view the R&R market as less cyclical, with homes needing to be resided approximately every 40 years. According to the US Census Bureau, about half of all houses are 40 years or older. As such, we expect a steady pipeline of homes requiring siding replacement or repairs through the next decade.

Price vs Fair Value

JHX is trading at a 665% premium.
Price
A$47.84
Fair Value
A$66.00
Uncertainty
Medium
1-Star Price
A$41.26
5-Star Price
A$41.70
Economic Moat
Fdp
Capital Allocation
Jtdfqcvlb

Bulls Say, Bears Say

Bulls

James Hardie’s US segment continues to take market share from lower-cost alternative siding materials such as vinyl and wood, despite higher prices, and a downturn in residential spending.

Bears

High interest rates are likely to dampen demand for new housing.

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News

Trading Information

Previous Close Price
A$47.84
Day Range
A$47.0047.77
52-Week Range
A$38.1063.11
Bid/Ask
A$47.07 / A$47.09
Market Cap
A$20.33 Bil
Volume/Avg
385,062 / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
19.66
Price/Sales
3.51
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
2.00%

Company Profile

James Hardie is a manufacturer of fiber cement-based building products, selling primarily to the residential construction industry. North America is the primary geography, generating about 80% of group earnings. Here, it is the largest manufacturer of fiber cement, which is mainly used for exterior siding on houses. Businesses in Australia, New Zealand, and the Philippines, as well as Europe, make up the rest of earnings.
Sector
Basic Materials
Industry
Building Materials
Stock Style Box
Mid Growth
Total Number of Employees
5,679

Competitors

Valuation

Metric
JHX
BSL
FBU
Price/Earnings (Normalized)
19.669.7313.37
Price/Book Value
7.280.880.66
Price/Sales
3.510.540.27
Price/Cash Flow
15.895.344.92
Price/Earnings
No chart available

Financial Strength

Metric
JHX
BSL
FBU
Quick Ratio
0.920.960.64
Current Ratio
1.792.121.69
Interest Coverage
21.1620.080.39
Quick Ratio
No chart available

Profitability

Metric
JHX
BSL
FBU
Return on Assets (Normalized)
15.30%6.10%0.40%
Return on Equity (Normalized)
39.87%9.23%1.02%
Return on Invested Capital (Normalized)
24.70%8.12%0.46%
Return on Assets
No chart available
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Building Materials Industry Comparables

1-Day Chart
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Morningstar Rating for Stocks
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Economic Moat
Market Cap
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Anhui Conch Cement Co Ltd Class H
AHCHF
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James Hardie Industries PLC ADR
JHX
KgmgjhcvtGcz$13.9 Bil

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