James Hardie Industries (JHX.AX)
Materials · ASX · Australia
Fundamentals
Valuation and ratings
James Hardie Industries trades at A$37.99, which is 40% above the A$22.97 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 125.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About James Hardie Industries
James Hardie Industries plc engages in the manufacture and sale of fiber cement, fiber gypsum, and cement bonded boards in the United States, Australia, Europe, and New Zealand. It operates through four segments: Siding & Trim, Deck, Rail & Accessories, Australia & New Zealand, and Europe. The Siding & Trim segment manufactures fiber cement and PVC siding and trim products, mouldings, interior linings, and accessories under brands such as Hardie, AZEK Exteriors, and Versatex are used in both residential new construction and repair and remodel applications. The Deck, Rail & Accessories segment produces decking, railing, cladding, pergolas, cabanas, and related accessories, including wood-alternative decking and railing solutions offered under the TimberTech, ULTRALOX, and INTEX brands, as well as functional and decorative outdoor accessories, including drink rails, structural mounting posts, lighting systems and gate kits; and adjustable louvered pergola systems through StruXure. The Australia & New Zealand segment manufactures and sells fiber cement products for residential and commercial applications, including exterior cladding, interior wall linings, flooring, eaves and soffits, and façade systems, primarily under the Hardie brand. The Europe segment produces fiber gypsum products and cement-bonded boards under the fermacell brand, and fiber cement products under the Hardie brand, serving residential and commercial repair, remodel, and new construction markets. The company offers its products through a network of specialty building products distributors, lumberyards, and home improvement retailers to builder's merchants, remodelers, DIY stores, and professional contractors. James Hardie Industries plc was founded in 1888 and is headquartered in Dublin, Ireland.
JHX.AX passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is James Hardie Industries (JHX.AX) undervalued?
Against our discounted cash flow estimate of A$22.97, JHX.AX at A$37.99 is 40% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is JHX.AX's P/E ratio?
JHX.AX trades at 125.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for JHX.AX, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.