Latest news with #JHX
Yahoo
a day ago
- Business
- Yahoo
James Hardie Industries plc (JHX): A Bull Case Theory
We came across a bullish thesis on James Hardie Industries plc (JHX) on Directionally Correct Research's Substack by Will Powers. In this article, we will summarize the bulls' thesis on JHX. James Hardie Industries plc (JHX)'s share was trading at $25.76 as of 6th June. JHX's trailing and forward P/E were 26.29 and 21.51 respectively according to Yahoo Finance. Aerial view of a suburban home under construction, displaying its modern architecture. James Hardie's proposed acquisition of AZEK is a bold, potentially transformative deal that brings together two leading exterior building products: high-performance fiber cement siding and backerboard. Management forecasts $500M in commercial synergies by FY26, implying a $225M EBITDA contribution at 45% margins. But realization is far from guaranteed. Both companies rely on two-step distribution, and success hinges on distributors' willingness and ability to push a broader, bulkier product suite. Siding and decking, while adjacent categories, lack natural bundling—there's no compelling homeowner rationale to undertake both upgrades simultaneously. Execution risk from integrating two independent sales forces further tempers optimism. Yet, if even half the synergies materialize, they still provide a meaningful uplift. Valuation assumes a conservative synergy haircut, normalized R&R growth, and stable pricing to drive ~10% top-line growth through FY28. Margins expand as volume leverage kicks in, with Hardie's North American EBITDA reaching 39% and AZEK hitting its 27.5% goal. Combined EBITDA surpasses $2.1B by FY28, with FCF conversion improving into the high 40s. A base 13.5x multiple implies a $44 share price and low-20s IRR; a rerating to 15x lifts it to $50. The deal's timing—amid change-in-control incentives and before an NYSE relisting—raises questions of insider motivations and execution risk. While the price tag looks steep and macro headwinds remain a threat to these discretionary categories, JHX remains a well-run compounder with expanding margins, strong cash generation, and potential index inclusion tailwinds. Investors willing to stomach integration risk and cyclicality may find value in what could be trough earnings and sentiment. Previously, we covered a by Will Powers in December 2024, highlighting its dominant position in fertility benefits, resilient cash flow, and post-Amazon client loss recovery. The stock has appreciated by approximately 47%. Powers frames PGNY as a cash-rich recovery play and JHX as a margin-expansion story with integration risk, offering distinct but complementary opportunities rooted in long-term structural growth. James Hardie Industries plc (JHX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held JHX at the end of the first quarter which was 5 in the previous quarter. While we acknowledge the risk and potential of JHX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Business Insider
7 days ago
- Business
- Business Insider
Analysts Offer Insights on Materials Companies: James Hardie (JHX) and BHP Group Ltd (OtherBHPLF)
There's a lot to be optimistic about in the Materials sector as 2 analysts just weighed in on James Hardie (JHX – Research Report) and BHP Group Ltd (BHPLF – Research Report) with bullish sentiments. Confident Investing Starts Here: James Hardie (JHX) In a report released yesterday, Keith Hughes from Truist Financial maintained a Buy rating on James Hardie. The company's shares closed last Tuesday at $24.77, close to its 52-week low of $23.23. According to Hughes is a 5-star analyst with an average return of 17.2% and a 58.7% success rate. Hughes covers the Industrial Goods sector, focusing on stocks such as Fortune Brands Innovations, SiteOne Landscape Supply, and Builders Firstsource. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for James Hardie with a $31.50 average price target, a 31.5% upside from current levels. In a report issued on May 21, Bank of America Securities also reiterated a Buy rating on the stock with a $28.00 price target. BHP Group Ltd (BHPLF) Morgans analyst Adrian Prendergast maintained a Buy rating on BHP Group Ltd today and set a price target of A$48.70. The company's shares closed last Tuesday at $24.66. According to Prendergast is ranked #1071 out of 9596 analysts. BHP Group Ltd has an analyst consensus of Moderate Buy, with a price target consensus of $27.07, which is a 9.8% upside from current levels. In a report issued on May 26, Morgan Stanley also maintained a Buy rating on the stock with a A$39.50 price target.
Yahoo
23-05-2025
- Business
- Yahoo
James Hardie Partners With Pahlisch to Expand Northwest Reach
James Hardie Industries plc JHX unit — James Hardie Building Products Inc. — has announced an exclusive three-year strategic partnership with Pahlisch Homes, a premier homebuilder in the Pacific Northwest. Under this agreement, Hardie siding and trim will become the default exterior solution across all of Pahlisch's new residential developments in the region. This alliance is a key move to deepen James Hardie's market penetration in a high-growth territory while aligning with a brand that prioritizes long-term homeowner value. James Hardie's reputation as the No. 1 siding brand in North America is built on the performance, durability, and design flexibility of its fiber cement products. These attributes resonate strongly with Pahlisch Homes' commitment to building communities that offer enduring aesthetic and structural value. Pahlisch CEO Matt Nelson emphasized that the collaboration reflects a shared vision for innovation and quality, highlighting that the agreement is not merely a supply deal but a strategic alignment of agreement reinforces James Hardie's strategy to grow through targeted partnerships and regional expansion. The deal not only secures long-term product adoption across a respected builder's pipeline but also enhances brand visibility in a lucrative geographic corridor. It exemplifies James Hardie's focus on embedding itself deeper into the residential construction value chain—a move likely to drive volume growth and strengthen pricing power in a competitive market. James Hardie shares have lost 23.5% over the past three months, underperforming the Zacks Building Products - Miscellaneous industry's 8.8% decline. Macroeconomic uncertainty, affordability concerns, and deflation in the home remodeling market continued to suppress large-ticket R&R spending. Multifamily construction also remained deeply challenged, and interior product volumes suffered from softness in discretionary remodeling. Additionally, raw material inflation, particularly in pulp and cement, impacted margins, although mitigated by pricing and operational savings. Image Source: Zacks Investment Research Looking into fiscal 2026, James Hardie's management expects continued macro headwinds and projects a mid-single-digit decline in North American market volumes. Nonetheless, it anticipates modest net sales growth in the region due to above-market volume performance and price realization, particularly in ColorPlus. The merger with AZEK is also expected to drive commercial synergies, expand addressable markets, and accelerate top-line growth. Despite near-term challenges, JHX remains confident in achieving long-term EBITDA margin expansion and generating more than $1 billion in free cash flow Zacks Consensus Estimate for earnings per share (EPS) has declined to $1.57 from $1.60 over the past seven days, depicting analysts' concern over the company's prospects. The estimated figure indicates 5.4% year-over-year growth in 2025. James Hardie currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the Construction sector are Sterling Infrastructure, Inc. STRL, EMCOR Group, Inc. EME and Gibraltar Industries, Inc. presently has a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 11.5%, on average. The stock has surged 67.8% in the past three months. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for Sterling's 2025 sales indicates a decrease of 1.7%, and the same for earnings implies an increase of 38.5% year over year. EMCOR currently holds a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 22.8%, on average. The stock has gained 17.1% in the past three consensus estimate for EMCOR's 2025 sales and EPS implies an increase of 13.3% and 9.8%, respectively, from a year ago. Gibraltar currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 9.1% in the past three months. The Zacks Consensus Estimate for Gibraltar's 2025 sales and EPS implies an increase of 9.3% and 15.8%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK) : Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report James Hardie Industries PLC. (JHX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
20-05-2025
- Business
- Washington Post
James Hardie: Fiscal Q4 Earnings Snapshot
DUBLIN — DUBLIN — James Hardie Industries PLC (JHX) on Tuesday reported earnings of $43.6 million in its fiscal fourth quarter. The Dublin-based company said it had profit of 10 cents per share. Earnings, adjusted for non-recurring costs, were 36 cents per share. The fiber cement maker posted revenue of $971.5 million in the period, which missed Street forecasts. Three analysts surveyed by Zacks expected $993.3 million.
Reuters
20-05-2025
- Business
- Reuters
Fibre cement maker James Hardie's full-year profit falls 9%
May 21 (Reuters) - James Hardie Industries ( opens new tab, the world's largest fibre cement maker, reported a 9% drop in annual profit on Wednesday, weighed by a weaker performance in its Asia Pacific segment coupled with a modest dip in the North American segment's net sales. Dublin-based James Hardie logged a 1% drop in annual net sales, as weaker volumes in North America and Asia Pacific outweighed gains from higher average selling prices across its three regions. The company's North American fibre cement sales slipped 1% for the year, as a 3% drop in volumes from market weakness outweighed gains from its annual price hike. James Hardie reported an annual adjusted net income of $644.3 million, compared with $707.5 million a year ago and higher than its full-year forecast of at least $635 million. It was slightly higher than a Visible Alpha consensus estimate of $643.6 million. The company did not provide an adjusted net income outlook for fiscal 2026, but said it expects its total adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be up by low single digits next year. "More recent, broader macroeconomic uncertainty could further impact the cost of home construction and weigh on consumer sentiment, influencing demand," the company said in a statement.
