IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#560
Positioning
Market Dominance
Construction
Construction Materials
$10.2B
Aaron M. Erter
James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products. It offers fiber cement interior linings, exterior siding products, and related accessories. Its products are used in various markets comprising new residential construction and commercial construction markets. The company was founded in 1888 and is headquartered in Dublin, Ireland.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = JHX ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$FER Ferrovial SE | 76 | 89 | 94 | 72 | - | - | 162.2% | 12.2% | 87.8% | 88.9% | 38.1% | 0.5% | 2.1% | - | $30.3B | VS | |
$CX CEMEX SAB DE CV | 74 | 81 | 87 | 87 | - | - | 7.8% | 3.5% | 33.6% | 11.2% | 5.9% | -2.1% | 1.1% | 60.0x | $32.6B | VS | |
$MWA Mueller Water Products, Inc. | 69 | 85 | 87 | 57 | 17.9x | 11.0x | 21.4% | 11.0% | 36.1% | 18.2% | 13.4% | 8.8% | 1.1% | 46.0x | $4.0B | VS | |
$TOL Toll Brothers, Inc. | 69 | 83 | 92 | 63 | 7.9x | 5.6x | 16.9% | 9.7% | 25.1% | 15.7% | 12.3% | 1.1% | 0.7% | 34.0x | $13.0B | VS | |
$GFF GRIFFON CORP | 68 | 86 | 82 | 60 | - | - | 34.2% | 2.3% | 42.0% | 8.2% | 2.0% | -4.0% | 0.9% | 1909.0x | $3.5B | VS | |
$FIX COMFORT SYSTEMS USA INC | 68 | 80 | 43 | 97 | 25.0x | 18.1x | 52.7% | 19.4% | 24.8% | 15.5% | 11.9% | 35.2% | 0.2% | 6.0x | $29.1B | VS | |
$BBU Brookfield Business Partners L.P. | 66 | 63 | 94 | 68 | - | - | 5.0% | 1.1% | 14.1% | 7.2% | 2.2% | -26.2% | 1.1% | 1081.0x | $1.7B | VS | |
$PHOE Phoenix Asia Holdings Ltd | 64 | 95 | 97 | 40 | - | - | 42.6% | 22.6% | 29.5% | 17.6% | 13.9% | 28.1% | 0.0% | 0.0x | $6M | VS | |
$EME EMCOR Group, Inc. | 64 | 75 | 42 | 80 | 24.6x | 16.0x | 36.5% | 14.0% | 19.4% | 9.4% | 6.9% | 16.4% | 0.1% | 3.0x | $29.1B | VS | |
$DY DYCOM INDUSTRIES INC | 64 | 68 | 58 | 89 | 19.9x | 9.7x | 29.4% | 11.8% | 22.1% | 10.4% | 7.3% | 14.1% | 0.0% | 63.0x | $8.5B | VS | |
$JHX James Hardie Industries plc | 61 | 86 | 86 | 39 | 24.8x | 4.3x | 78.5% | 32.4% | 38.8% | 16.9% | 10.9% | -1.5% | 0.0% | 52.0x | $10.2B | ||
| SECTOR BENCH | - | - | - | - | - | 19.1x | 10.7x | 14.2% | 5.9% | 23.7% | 7.3% | 5.4% | 1.9% | 0.0% | 0.4x | - | REF |
James Hardie Industries plc (JHX) receives a "Hold" rating with a composite score of 61.4/100. It ranks #560 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Aaron M. Erter
Chief Executive Officer
Labor Force
3,257
86
44
36
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for JHX
Headcount
3.3K
HQ Base
Dublin,
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Construction sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for JHX.
View All RatingsEarnings well-supported by fundamental cash flows
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 86 | 97 | -11DRAG |
| MOMENTUM | 39 | 39 | 0NEUTRAL |
| VALUATION | 86 | 90 | -4NEUTRAL |
| INVESTMENT | 44 | 82 | -38DRAG |
| STABILITY | 36 | 31 | +5NEUTRAL |
| SHORT INT | 47 | 43 | +4NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 77.4% vs WACC 9.1% (spread +68.3%)
GM 39% vs sector 24%, OM 17% vs sector 7%
Capital turnover 6.96x, R&D intensity 1.3%
Rev growth -1%, 10yr history
Interest coverage 63.7x, Net debt/EBITDA 0.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns James Hardie Industries plc a Hold rating, with a composite score of 61.4/100 and 3 out of 5 stars. Ranked #560 of 7,333 stocks, JHX presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
James Hardie Industries plc scores an outstanding 86/100 on our quality factor, placing it among the highest-quality companies in our coverage universe. The company reports a return on equity of 78.5% (sector avg: 14.2%), gross margins of 38.8% (sector avg: 23.7%), net margins of 10.9% (sector avg: 5.4%). This level of profitability and capital efficiency typically reflects a durable competitive advantage and disciplined management.
JHX carries a solid value score of 86/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 24.82x, an EV/EBITDA of 4.33x, a P/B ratio of 6.73x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
With an investment score of 44/100, JHX exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -1.5% vs. a sector average of 1.9% and a return on assets of 32.4% (sector: 5.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
JHX is currently showing below-average momentum at 39/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -1.5% year-over-year, while a beta of 1.20 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
JHX's stability score of 36/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.20 and a debt-to-equity ratio of 52.00x (sector avg: 0.4x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 47/100 for JHX suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 52.00x). With a $10.2B market cap (large-cap), James Hardie Industries plc may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
James Hardie Industries plc is a large-cap company in the Construction sector, ranked #15 of 50 in its sector (70th percentile) and #560 of 7,333 overall (92nd percentile). Key comparisons include ROE of 78.5% exceeding the 14.2% sector median and operating margins of 16.9% above the 7.3% sector average. This above-median position indicates JHX is outperforming a majority of its Construction peers, though there is room to close the gap with sector leaders.
While JHX currently exhibits a HOLD profile, superior opportunities exist within the CONSTRUCTION sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Construction Alpha →Quant Factor Profile
Key factor gap
Value (86) vs Stability (36) — closing this gap could shift the rating.
RANK #15 OF 50 IN INDUSTRIALS
EV/EBITDA 59% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 454% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 64% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF MAR 31, 2025 (Q4 FY2024)
We rate James Hardie Industries plc (JHX) as a Hold with a composite score of 61.4/100 at a current price of $25.12. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in quality (86th percentile) and value (86th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (36th percentile) and momentum (39th percentile) tempers our overall conviction. We assign a Narrow Moat rating (67/100), Medium uncertainty, and Standard capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
James Hardie Industries plc holds an above-average position (#15 of 50) within the Construction sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 61.4/100 places it at rank #560 in our full 7,333-stock universe. With a $10.2B market capitalization, James Hardie Industries plc operates at meaningful scale within the Construction sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue contraction of -1% combined with momentum at the 39th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 39% (+15.1pp vs sector) narrow to operating margins of 17% (+9.6pp vs sector) and net margins of 10.9%, yielding a gross-to-net conversion rate of 28%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $25.12, James Hardie Industries plc appears undervalued relative to its fundamentals. Our value factor score of 86/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.
The stock currently trades at a P/E of 24.8x (a 30% premium to the sector median of 19.1x), EV/EBITDA of 4.3x (discounted to peers), P/B of 6.7x, P/S of 0.9x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
Returns on equity of 78.5% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
A value factor score of 86/100 suggests the market is underpricing these fundamentals, creating a potential margin of safety for new investors.
Return on assets of 32.4% indicates efficient deployment of the full asset base, not just equity capital.
Revenue decline of -1% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
We assign a Medium uncertainty rating to James Hardie Industries plc. The stock presents a balanced risk profile: below-average price stability (36th percentile). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: below-average price stability (36th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 36th percentile and quality factor at the 86th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our medium uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate James Hardie Industries plc's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 78.5%, and the balance sheet is managed within acceptable parameters (D/E: 52%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; James Hardie Industries plc falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, James Hardie Industries plc receives a Hold rating with a composite score of 61.4/100 (rank #560 of 7,333). Our quantitative framework assigns a Narrow Moat (67/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 58/100.
Our analysis supports a neutral stance on James Hardie Industries plc. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign James Hardie Industries plc a Narrow Moat rating with a composite moat score of 67/100. The ROIC-WACC spread of +68.3% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that James Hardie Industries plc can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being financial resilience at 18.2/20.
The strongest moat sources are financial resilience (18.2/20) and margin superiority (16.6/20). Interest coverage 63.7x, Net debt/EBITDA 0.6x. GM 39% vs sector 24%, OM 17% vs sector 7%. These pillars form the core of James Hardie Industries plc's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (6.4/20) and growth durability (10.5/20). Capital turnover 6.96x, R&D intensity 1.3%. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect James Hardie Industries plc's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 39% providing a solid profitability foundation, operating margins of 17% reflecting effective cost management, declining revenues (-1%) that pressure the earnings outlook. The margin cascade from 39% gross to 17% operating to 10.9% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 86th percentile.
The margin profile shows gross margins of 39%, operating margins of 17%, net margins of 10.9%. Return metrics include ROE of 78.5% and ROA of 32.4%. Relative to the Construction sector, gross margins are 15.1 percentage points above the sector median of 24%, and ROE of 78.5% compares to a sector median of 14.2%.
The balance sheet reflects moderate leverage with D/E of 52%, revenue growth of -1%. The sector median D/E is 0%, putting James Hardie Industries plc at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
James Hardie Industries plc (JHX) has been upgraded to Buy following strong Q3 2026 results that indicate an operational turnaround and resilience in the face of soft housing markets. The company reported a 33.3% year-over-year revenue increase, largely due to the AZEK acquisition, with management raising its 2026 guidance. James Hardie aims to convert material usage from wood/vinyl to composites, presenting significant long-term growth opportunities.
James Hardie Industries PLC (JHX) reported strong third-quarter fiscal year 2026 results, surpassing analyst expectations with an EPS of $0.26 and revenues of $1.29 billion. The company's stock rose by 3.97% in pre-market trading following the announcement, driven by new product innovations, operational optimizations including plant closures for $25 million in annual savings, and successful integration of AZEK operations. Despite challenges in the home construction market, James Hardie remains confident in achieving organic revenue growth and adjusted EBITDA margin expansion in fiscal year 2027 by focusing on repair and remodel markets, new product innovation, and commercial synergies.
James Hardie Industries (ASX:JHX) saw its stock rise 12.6% after reporting adjusted Q3 earnings that surpassed analyst expectations, despite a noted decline in reported net income compared to the previous year. The company's sales increased significantly, attributed partly to the early benefits and ahead-of-schedule cost synergies from its AZEK acquisition. While the weaker net income highlights ongoing integration and balance sheet risks, the strong revenue growth and synergy progress support the company's investment narrative, emphasizing its ability to convert top-line growth into sustainable earnings.
Truist Securities has increased its price target for James Hardie Industries (NYSE:JHX) to $30 from $28, maintaining a Buy rating on the building materials manufacturer. This adjustment follows James Hardie's recent quarterly results, which surpassed Street expectations, and an upward revision of its fiscal year 2026 guidance. The company demonstrated growth in its decking business, reduced siding volume pressure, and reported solid revenue growth, leading to increased confidence in its future performance independent of broader market conditions.
JPMorgan Chase & Co. has upgraded James Hardie Industries (NYSE:JHX) from a "neutral" to an "overweight" rating. This upgrade follows strong Q3 results where the company beat revenue and EPS expectations, leading to a raised guidance. Despite positive analyst sentiment and recent gains from the AZEK acquisition, concerns remain regarding the stock's high P/E ratio and elevated beta, along with a year-over-year decline in EPS and modest net margin.