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James Hardie Industries PLC ADR JHX

Morningstar Rating
$36.76 −0.55 (1.47%)
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Company Report

Transfer of Coverage; James Hardie's Fair Value Estimate Rises to AUD 51 From AUD 45.50

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 U.S. 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 738% premium.
Price
$36.76
Fair Value
$51.00
Uncertainty
Medium
1-Star Price
$64.82
5-Star Price
$76.80
Economic Moat
Phl
Capital Allocation
Yzkjyqxykx

Bulls Say, Bears Say

Bulls

James Hardie’s U.S. 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
$37.31
Day Range
$36.6236.94
52-Week Range
$24.1841.98
Bid/Ask
$36.65 / $38.83
Market Cap
$16.09 Bil
Volume/Avg
21,333 / 37,555

Key Statistics

Price/Earnings (Normalized)
25.32
Price/Sales
4.22
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.52%

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
5,473

Competitors

Valuation

Metric
JHX
BLD
BKW
Price/Earnings (Normalized)
25.3231.9235.64
Price/Book Value
8.453.021.17
Price/Sales
4.221.793.38
Price/Cash Flow
19.7210.7236.83
Price/Earnings
JHX
BLD
BKW

Financial Strength

Metric
JHX
BLD
BKW
Quick Ratio
1.002.030.89
Current Ratio
1.892.492.31
Interest Coverage
30.955.97−0.39
Quick Ratio
JHX
BLD
BKW

Profitability

Metric
JHX
BLD
BKW
Return on Assets (Normalized)
15.09%5.74%1.01%
Return on Equity (Normalized)
39.59%10.99%1.74%
Return on Invested Capital (Normalized)
24.56%8.04%2.30%
Return on Assets
JHX
BLD
BKW
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Building Materials Industry Comparables

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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CRH
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HCMLY
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HCMLF
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MLM
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VMC
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HLBZF
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HDELY
Heidelberg Materials AG ADRWmc$19.4 Bil
AHCHY
Anhui Conch Cement Co Ltd ADRRgzfbs$17.7 Bil
AHCHF
Anhui Conch Cement Co Ltd Class HGrkjshy$17.7 Bil

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