James Hardie Industries PLC

Industry: Materials

JHX Details

Strong result: James Hardie Industries PLC (ASX: JHX) corrected over 5.6% on April 20. On the other hand, the shares of JHX rallied over 29.17% in the last three months (as at April 19, 2016) as the group reported a strong third quarter of 2016 results despite the tough market conditions. JHX net operating profit rose by 16% yoy to US$56.2 million during the quarter while adjusted EBIT surged by 23% yoy to US$82.0 million. Net sales for the group rose by 7% yoy to US$413.9 million. North America and Europe Fiber Cement Segment net sales increased by 12% yoy to US$330.5 million during the quarter while North America and Europe Fiber Cement Segment EBIT margin reached 23.9%.
Recommendation: The heavy rally in the stock placed them at higher valuations and we believe that the stock is “Expensive” at the current price of $18.45

JHX presence and revenue mix (Source: Company Reports)

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Mid-Cap