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James Hardie Industries (ASX:JHX) has drawn investor attention after recent share price moves, with the stock showing mixed returns across different timeframes and offering fresh data on revenue, earnings and current valuation signals.
See our latest analysis for James Hardie Industries.
Recent trading has been choppy, with a 3.99% 1 day share price decline and softer weekly moves. However, this sits against a 24.27% 90 day share price return and a 1 year total shareholder return decline of 39.87%, which together indicate that shorter term momentum has picked up while longer term holders have still experienced meaningful capital pressure.
If this price volatility has you thinking about spreading your risk across other themes, it could be worth scanning our screener of 4 top founder-led companies as a starting point for new ideas.
With revenue at A$4.1b, net income of A$192.1m and the shares trading at A$32.46, some investors see an 18% intrinsic discount. This raises the question of whether James Hardie is undervalued or already pricing in future growth.
At A$32.46, James Hardie Industries sits below a widely followed fair value estimate of A$34.83, with that gap anchored to detailed growth and margin assumptions.
Synergy capture from the AZEK merger is already showing tangible cost reductions, with management reaffirming cost savings targets ($125 million over 3 years) and planning for over $500 million of commercial synergies within 5 years, providing clear visibility to EBITDA margin expansion and earnings growth.
Want to see what kind of revenue run rate, margin lift and future earnings power are baked into that fair value line? The full narrative spells out the growth, profitability and valuation multiples it assumes, and how they tie back to today’s A$32.46 price.
Result: Fair Value of A$34.83 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there are still clear risks, including weaker U.S. housing demand hitting volumes and the AZEK integration falling short of planned cost and revenue synergies.
Find out about the key risks to this James Hardie Industries narrative.
The earlier view leans on future cash flows suggesting James Hardie is 18.3% below an estimated fair value of A$39.75. On a simple earnings lens, though, the picture is very different, with the current P/E at 68.8x versus a fair ratio of 38x, the global Basic Materials average of 15.5x and a peer average of 80x. That kind of gap can cut both ways. How comfortable are you with paying up for this earnings profile?
See what the numbers say about this price — find out in our valuation breakdown.
ASX:JHX P/E Ratio as at Feb 2026
If you see the numbers differently or prefer to stress test the assumptions yourself, you can create a custom James Hardie view in just a few minutes, then Do it your way
A great starting point for your James Hardie Industries research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
If you are serious about building a stronger portfolio, do not stop at one company. Use screens to spot opportunities that fit your style before others do.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include JHX.AX.
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