# James Hardie Industries (JHX.US)

Canonical: https://gigainvestors.com/s/JHX

Analysis as of: 2026-10-16T07:29:30.352Z. Financial observations: FY2000–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $25.90 per share; close as of 2026-10-15.

Estimated value: low $6.43 per share, central $7.27 per share, high $8.39 per share. Buy at or below the central value $7.27 per share. Valuation as of 2026-10-16T07:29:30.352Z; scenarios are not confidence intervals.

Expected annual return: 4.8% at the stated quote. About 4.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.20×

- FY2018: 0.11×

- FY2019: 0.14×

- FY2020: 0.13×

- FY2021: 0.16×

- FY2022: 0.19×

- FY2023: 0.20×

- FY2024: 0.19×

- FY2025: 0.17×

- FY2026: 0.09×

### moat: pass

- ROIC, median of available years: 20.2%

- ROIC, second-lowest year: 12.8%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 35.8%

- Recent gross margin (lower of latest and 3-year median): 35.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.1%

- ROIC including acquisitions, ten-year median: 10.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 90.9%

- FY2018: 37.9%

- FY2019: 12.8%

- FY2020: 13.6%

- FY2021: 19.6%

- FY2022: 24.8%

- FY2023: 21.5%

- FY2024: 20.7%

- FY2025: 16.5%

- FY2026: 4.9%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.69×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.4B

- Net income, five-year total: $2.0B

- Return on incremental invested capital: 1.6%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -3.8 pp

- Working capital / revenue, final three-year average: 12.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 0.32×

- FY2024: 0.64×

- FY2025: 0.51×

- FY2026: 2.05×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 37.9% vs 16.5%

- Per-share earnings: 0.55 to 0.98 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.0%

- Ordinary dilution, 5-year annual growth: 4.1%

- Market cap gain: $3.3B

- Cumulative retained earnings: $2.4B

- Diluted shares, 10-year annual growth: 2.0%

- Diluted shares, 5-year annual growth: 4.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 7.6%

- Per-share value change: $0.43

- Per-share value, starting three-year median: $0.55

- Per-share value, ending three-year median: $0.98

- Buybacks concentrated in cheaper years (correlation): 0.26

- Average buyback yield: 1.1%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $4.3B

- Cumulative net income, 10 years: $3.2B

- ROIC, first three-year median: 37.9%

- ROIC, last three-year median: 16.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.62

- FY2018: $0.33

- FY2019: $0.52

- FY2020: $0.54

- FY2021: $0.59

- FY2022: $1.03

- FY2023: $1.15

- FY2024: $1.16

- FY2025: $0.98

- FY2026: $0.19

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.27×

- Restructuring years, last five: 3

- Stock compensation / operating cash flow: 6.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.67×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.26×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -0.8%

- FY2018: -6.3%

- FY2019: -1.5%

- FY2020: -5.2%

- FY2021: -12.8%

- FY2022: -7.0%

- FY2023: -2.1%

- FY2024: -8.2%

- FY2025: -7.2%

- FY2026: -3.5%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Dec 2021 · "James Hardie stock collapses nearly 35% as US housing slump hits building materials" (finance.yahoo.com, Aug 2025) · sales +24.7%

Story as of 2026-10-16T09:58:59.421Z; price observation 2026-10-15.

Price needs cash profits to grow 17.5% a year for ten years

- 2025-08-20: James Hardie stock collapses nearly 35% as US housing slump hits building materials ([finance.yahoo.com](https://finance.yahoo.com/news/james-hardie-stock-collapses-nearly-35-as-us-housing-slump-hits-building-materials-204438571.html))

- 2025-09-02: James Hardie Industries (JHX) Drops 34% Amid Channel Inventory Destocking Disclosure -- Hagens Berman ([globenewswire.com](https://www.globenewswire.com/news-release/2025/09/02/3142780/32716/en/James-Hardie-Industries-JHX-Drops-34-Amid-Channel-Inventory-Destocking-Disclosure-Hagens-Berman.html))

- 2025-10-08: James Hardie (JHX) Surges on Expected 35% Net Sales Growth ([finance.yahoo.com](https://finance.yahoo.com/news/james-hardie-jhx-surges-expected-172444799.html))

- 2026-08-06: James Hardie Reports First Quarter FY27 Results; Raises FY27 Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/james-hardie-reports-first-quarter-203000213.html))

### Sales · FY2025–2026

sales +24.7%; source https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm; observed 2026-05-19.

- FY2017: $1.9B 

- FY2018: $2.1B 

- FY2019: $2.5B 

- FY2020: $2.6B 

- FY2021: $2.9B 

- FY2022: $3.6B 

- FY2023: $3.8B 

- FY2024: $3.9B 

- FY2025: $3.9B 

- FY2026: $4.8B 

### Gross margin · FY2026

gross margin 35.8%; source https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm; observed 2026-05-19.

- FY2017: 35.1% 

- FY2018: 35.5% 

- FY2019: 33.2% 

- FY2020: 35.8% 

- FY2021: 36.2% 

- FY2022: 36.3% 

- FY2023: 34.7% 

- FY2024: 40.4% 

- FY2025: 38.8% 

- FY2026: 35.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building materials; annual sales are USD 4.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm (filed 2026-05-19); FY2026: revenue 4835800000; grossProfit 1729600000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JHX.US: 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.

### Why customers stay

Margins ranged from 35.8% to 40.4% during 2024–26; it earns 20.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2024: grossProfit / revenue = 40.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2025: grossProfit / revenue = 38.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm (filed 2026-05-19); FY2026: grossProfit / revenue = 35.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); 10-year return on capital observations [[2017,0.9092671487330285],[2018,0.37945433153284114],[2019,0.12815130166808078],[2020,0.13635309349728592],[2021,0.19629535002554932],[2022,0.24812795543608157],[2023,0.21487787675772477],[2024,0.20729602851227424],[2025,0.16508871220349516],[2026,0.049413203349241666]]; median 0.20179568926891178. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 36% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm (filed 2026-05-19); Gross margin observations: [[2021,0.361570461030701],[2022,0.3633773203862008],[2023,0.34735643747848877]]; range within 2 percentage points.

### Where the cash goes

Earns 1.6% on new investment; paid dividends in 7 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2017: growth capex 18700000; upkeep 83200000; owner earnings 276500000. Growth capex / owner earnings = 0.06763110307414105.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2018: growth capex 64952249.31233457; upkeep 145247750.68766543; owner earnings 92852249.31233457. Growth capex / owner earnings = 0.6995226264670172.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2019: growth capex 198100000; upkeep 119400000; owner earnings 228800000. Growth capex / owner earnings = 0.8658216783216783.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2020: growth capex 50636652.1936875; upkeep 152663347.8063125; owner earnings 220336652.1936875. Growth capex / owner earnings = 0.22981492951601723.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2021: growth capex 0; upkeep 110700000; owner earnings 287100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2022: growth capex 97900000; upkeep 161800000; owner earnings 459100000. Growth capex / owner earnings = 0.21324330211282944.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2023: growth capex 81067480.02301043; upkeep 518732519.97698957; owner earnings 165867480.02301043. Growth capex / owner earnings = 0.4887484877190159.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2024: growth capex 78809982.88208592; upkeep 370490017.1179141; cash acquisitions 0; owner earnings 324709982.8820859. Growth capex plus acquisitions / owner earnings = 0.24270883876922475.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); FY2025: growth capex 0; upkeep 422200000; cash acquisitions 0; owner earnings 218000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm (filed 2026-05-19); FY2026: growth capex 0; upkeep 383900000; cash acquisitions 3919800000; owner earnings 213600000. Growth capex plus acquisitions / owner earnings = 18.35112359550562.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); Incremental return on capital 0.01634371335865024, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); Dividend observations: [[2017,176800000],[2018,177500000],[2019,172100000],[2020,158600000],[2021,484000000],[2022,484000000],[2023,129600000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm (filed 2026-05-19); FY2026: cash repurchases 13700000 USD.

### Are managers owners

Insiders own 0.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); JHX.US SharesStats.PercentInsiders = 0.41700000000000004 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 17.5% yearly over ten years; actual decline was 3.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-19); Ten-year compound average after fade. Initial solved rate 0.24040333915783696. Price 25.9; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.5612701252236136 → FY2026 0.3915673693858845. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $15.01 per share

- 2016-11: $15.58 per share

- 2016-12: $15.90 per share

- 2017-01: $15.77 per share

- 2017-02: $14.87 per share

- 2017-03: $15.80 per share

- 2017-04: $17.06 per share

- 2017-05: $14.63 per share

- 2017-06: $15.77 per share

- 2017-07: $15.41 per share

- 2017-08: $14.17 per share

- 2017-09: $14.06 per share

- 2017-10: $15.39 per share

- 2017-11: $16.43 per share

- 2017-12: $17.61 per share

- 2018-01: $17.67 per share

- 2018-02: $17.70 per share

- 2018-03: $17.88 per share

- 2018-04: $17.81 per share

- 2018-05: $16.75 per share

- 2018-06: $16.91 per share

- 2018-07: $15.96 per share

- 2018-08: $15.26 per share

- 2018-09: $15.26 per share

- 2018-10: $13.38 per share

- 2018-11: $11.70 per share

- 2018-12: $11.74 per share

- 2019-01: $11.24 per share

- 2019-02: $12.55 per share

- 2019-03: $12.87 per share

- 2019-04: $13.69 per share

- 2019-05: $12.76 per share

- 2019-06: $13.21 per share

- 2019-07: $13.70 per share

- 2019-08: $15.27 per share

- 2019-09: $16.81 per share

- 2019-10: $17.18 per share

- 2019-11: $19.73 per share

- 2019-12: $19.64 per share

- 2020-01: $21.00 per share

- 2020-02: $18.26 per share

- 2020-03: $11.98 per share

- 2020-04: $14.55 per share

- 2020-05: $17.21 per share

- 2020-06: $19.24 per share

- 2020-07: $20.79 per share

- 2020-08: $22.45 per share

- 2020-09: $23.81 per share

- 2020-10: $24.38 per share

- 2020-11: $29.46 per share

- 2020-12: $29.66 per share

- 2021-01: $27.91 per share

- 2021-02: $28.36 per share

- 2021-03: $30.58 per share

- 2021-04: $33.23 per share

- 2021-05: $32.69 per share

- 2021-06: $34.19 per share

- 2021-07: $33.76 per share

- 2021-08: $38.57 per share

- 2021-09: $35.68 per share

- 2021-10: $39.33 per share

- 2021-11: $39.38 per share

- 2021-12: $40.69 per share

- 2022-01: $33.32 per share

- 2022-02: $32.52 per share

- 2022-03: $30.15 per share

- 2022-04: $28.69 per share

- 2022-05: $25.83 per share

- 2022-06: $21.94 per share

- 2022-07: $24.84 per share

- 2022-08: $22.41 per share

- 2022-09: $19.78 per share

- 2022-10: $22.04 per share

- 2022-11: $19.85 per share

- 2022-12: $17.94 per share

- 2023-01: $22.47 per share

- 2023-02: $20.86 per share

- 2023-03: $21.65 per share

- 2023-04: $22.26 per share

- 2023-05: $24.60 per share

- 2023-06: $26.89 per share

- 2023-07: $29.60 per share

- 2023-08: $30.18 per share

- 2023-09: $26.24 per share

- 2023-10: $24.87 per share

- 2023-11: $32.15 per share

- 2023-12: $38.67 per share

- 2024-01: $37.56 per share

- 2024-02: $39.57 per share

- 2024-03: $40.46 per share

- 2024-04: $34.50 per share

- 2024-05: $31.02 per share

- 2024-06: $31.54 per share

- 2024-07: $36.16 per share

- 2024-08: $37.41 per share

- 2024-09: $40.15 per share

- 2024-10: $31.90 per share

- 2024-11: $37.15 per share

- 2024-12: $30.81 per share

- 2025-01: $33.86 per share

- 2025-02: $31.60 per share

- 2025-03: $23.56 per share

- 2025-04: $23.74 per share

- 2025-05: $23.30 per share

- 2025-06: $26.89 per share

- 2025-07: $25.94 per share

- 2025-08: $20.13 per share

- 2025-09: $19.21 per share

- 2025-10: $20.93 per share

- 2025-11: $19.78 per share

- 2025-12: $20.75 per share

- 2026-01: $22.99 per share

- 2026-02: $24.35 per share

- 2026-03: $18.94 per share

- 2026-04: $20.99 per share

- 2026-05: $23.28 per share

- 2026-06: $26.18 per share

- 2026-07: $26.29 per share

- 2026-08: $29.71 per share

- 2026-09: $25.31 per share

- 2026-10: $25.90 per share

## Annual estimated value (USD per share)

- FY2017: low $5.19 per share, central $6.11 per share, high $7.09 per share

- FY2018: low $6.21 per share, central $7.48 per share, high $8.64 per share

- FY2019: low $7.06 per share, central $8.74 per share, high $10.19 per share

- FY2020: low $7.23 per share, central $9.88 per share, high $11.55 per share

- FY2021: low $8.29 per share, central $11.47 per share, high $13.41 per share

- FY2022: low $8.21 per share, central $9.32 per share, high $10.81 per share

- FY2023: low $10.60 per share, central $15.11 per share, high $17.74 per share

- FY2024: low $10.94 per share, central $15.35 per share, high $17.92 per share

- FY2025: low $9.83 per share, central $11.84 per share, high $13.61 per share

- FY2026: low $6.27 per share, central $7.02 per share, high $8.02 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1159152/000115915226000045/jhx-20260331.htm); period 2026-03-31, filed 2026-05-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.