Is the business good?
How good a business is JHX?
James Hardie Industries plc earns 3.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
3.3%
Return on invested capital · cost of capital 9.0% · 5.7 points below what the capital costs: growth destroys value
- Operating margin
- 9.3%
Operating margin · Building Materials median 18% · fiscal year to FY2026
- Cash conversion
- 1.98×
Cash conversion · 0.90× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +26%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | 16% |
| FY2022 | 19% |
| FY2023 | 20% |
| FY2024 | 20% |
| FY2025 | 17% |
| FY2026 | 9.3% |
Details›
- Gross marginfiscal year to FY2026
- 36%
- Operating marginfiscal year to FY2026
- 9.3%
- Net marginfiscal year to FY2026
- 2.1%
- Free cash flow margin
- 4.3%
- R&D as % of revenue
- 1.3%
- Revenue, trailing twelve months
- $4.84B
- Free cash flow, trailing twelve months
- $206M
- Net income, trailing twelve months
- $104M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Building Materials
Ranks #10 of 11 by Smart Score