Key Takeaways
- Quality: operating margin is 16.5% but net margin only 6.2%, and $136M of free cash flow trails implied net income of about $352M.
- Growth: TTM revenue rose 23.7%, against an 8.6% five-year CAGR, so growth has recently accelerated.
- Opportunity: a 49.31 P/E and 0.8% FCF yield with the stock mid-range in its two-year band keep the Opportunity score at 32 out of 100.
This James Hardie Industries plc. stock analysis sees fast top-line growth meeting a rich valuation. Trailing twelve month (TTM) revenue rose 23.7% to $5.7B, yet the P/E ratio is 49.31 and free cash flow is only $136M. StreetBriefs’ quantitative model issues a Hold signal, a research flag and not a personal recommendation to transact.
What Is Happening With the Stock Price
The shares trade at $28.60, in the middle of a two-year range of $16.69 to $37.15, with a market capitalization of $16.64B. The stock is neither near the bottom nor the top of its range, which fits a market still weighing growth against valuation.
Quality: Is This a Financially Sound Business?
Gross margin is 37.6% and operating margin is 16.5%, but the net profit margin is only 6.2%, so a large share of operating profit does not reach the bottom line, which points to interest, taxes or other charges. Earnings per share are $0.58, return on equity is 5.5% and return on assets is 4.3%. Free cash flow of $136M compares with implied net income of about $352M (net margin times TTM revenue), so cash covers well under half of earnings. This James Hardie Industries plc. stock analysis therefore treats earnings quality as a watch item. Debt-to-equity is 0.63 and the current ratio is 2.12, but the quick ratio of 0.63 shows liquidity leans on inventory and other less liquid assets. The Quality score is 55 out of 100.
Growth: Does This Company Have Real Upside?
Revenue grew 23.7% over the TTM period, well above the 8.6% five-year CAGR, so growth has recently accelerated. Earnings growth is N/A. EV/Revenue is 3.68 and EV/EBITDA is 13.20. The Growth score is 49 out of 100: the acceleration is real, but the five-year record is more modest and the net margin is thin.
Opportunity: Is Now a Good Time to Enter?
A P/E of 49.31 is demanding for a company with a 5.5% return on equity, and the FCF yield is 0.8%. Price-to-book is 2.47. The dividend yield is 0.0%, so shareholders are not being paid to wait. A mid-range price offers no strong momentum or contrarian signal either way, and the Opportunity score is 32 out of 100.
James Hardie Industries plc. Stock Analysis: The Bottom Line
The bull case is accelerating revenue, healthy gross and operating margins and moderate leverage. The bear case is a high earnings multiple, low cash conversion and a thin net margin that leave little room for execution missteps or a slowdown in building-materials demand. With a Recommendation score of 45 out of 100, the model signal is Hold. Buy / Hold / Sell reflects StreetBriefs’ quantitative scoring model (Quality, Growth, Opportunity), a data-driven signal for further research, not a personalized recommendation to transact.
Financial Metrics Summary
| Metric | Value |
|---|---|
| Price & Valuation | |
| Current Price | $28.60 |
| 2-Year Low | $16.69 |
| 2-Year High | $37.15 |
| Market Cap | $16.64B |
| P/E Ratio | 49.31 |
| EV / Revenue | 3.68 |
| Our Scores | |
| Quality Score | 55 / 100 |
| Growth Score | 49 / 100 |
| Opportunity Score | 32 / 100 |
| Profitability | |
| Earnings Per Share | $0.58 |
| Return on Assets | 4.3% |
| Return on Equity | 5.5% |
| Net Profit Margin | 6.2% |
| Gross Margin | 37.6% |
| Operating Margin | 16.5% |
| Growth | |
| Revenue Growth (5Y CAGR) | 8.6% |
| Revenue Growth (TTM) | 23.7% |
| Balance Sheet | |
| Debt-to-Equity | 0.63 |
| Current Ratio | 2.12 |
| Quick Ratio | 0.63 |
| Income & Dividends | |
| Dividend Yield | 0.0% |
| Payout Ratio | 0.0% |
Data as of November 12, 2026
Our Three-Pillar Assessment
| Quality |
55/100 |
| Growth |
49/100 |
| Opportunity |
32/100 |
Quality measures business fundamentals: profitability, cash flow discipline, and balance sheet strength.
Growth captures revenue momentum, gross margin scalability, and the Rule of 40 efficiency test.
Opportunity signals entry timing: current valuation versus history and price position in the 2-year range.
Current price: $28.60 trading 23% below its 2-year high of $37.15.
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This analysis is done using financial data from Yahoo Finance.
Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.
