Last Updated: 17 Sep 2024
Executive Summary
James Hardie Industries PLC ADR (JHX) is a leading manufacturer and seller of fiber cement, gypsum fiber, and cement-bonded construction products. The company has a strong global presence, with operations in the United States, Australia, Europe, New Zealand, the Philippines, and Canada. JHX's products are used in a variety of applications, including residential, commercial, and industrial construction.
The company has a solid financial foundation, with strong revenue growth and profitability. JHX is also well-positioned to benefit from the growing demand for sustainable building materials.
Company Overview
James Hardie Industries was founded in 1888 in Australia. The company initially produced asbestos-based building materials, but it transitioned to fiber cement in the 1980s. Today, JHX is one of the world's leading manufacturers of fiber cement products.
The company's products are used in a variety of applications, including:
Exterior cladding
Siding
Roofing
Interior wallboard
Cement board
JHX has a global presence, with operations in the United States, Australia, Europe, New Zealand, the Philippines, and Canada. The company's products are sold through a network of distributors and retailers.
Fundamental Analysis
JHX is a financially sound company with a strong track record of growth. The company's revenue has grown at a compound annual growth rate (CAGR) of 6.5% over the past five years. In fiscal 2023, JHX reported revenue of $3.97 billion, up 3.9% from the previous year.
The company's profitability has also improved in recent years. JHX's operating margin expanded to 23.7% in fiscal 2023, up from 22.5% in the previous year. The company's net income grew by 4.3% in fiscal 2023, to $504 million.
JHX is well-positioned to benefit from the growing demand for sustainable building materials. The company's fiber cement products are more durable and environmentally friendly than traditional building materials such as wood and vinyl.
Technical Analysis
JHX's stock price has been in a downtrend since early 2023. The stock price fell from a high of $41.98 in January 2023 to a low of $24.28 in June 2023. The stock price has since rebounded to $36.4, but it remains below its 50-day and 200-day moving averages.
The technical indicators suggest that JHX's stock price is oversold. The relative strength index (RSI) is below 30, which indicates that the stock is undervalued. The moving average convergence divergence (MACD) is also below zero, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for JHX's stock price is mixed. The technical indicators suggest that the stock is oversold, but the stock price is still below its moving averages. If the stock price can break above its 50-day moving average, it could rally to $40. However, if the stock price falls below its 200-day moving average, it could fall to $30.
Long Term Outlook
The long-term outlook for JHX's stock price is positive. The company has a strong financial foundation and is well-positioned to benefit from the growing demand for sustainable building materials. JHX's stock price could reach $50 in the next five years.
Analyst Recommendations
Analysts are divided on JHX's stock. One analyst has a sell rating on the stock, while another analyst has a hold rating. No analysts have a buy rating on the stock.
The consensus analyst price target for JHX is $28.25. This price target is below the current stock price of $36.4.
