Is JHX a high-quality business?

AlphaMadera's AlphaQuality grade scores James Hardie Industries plc on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how JHX compares to a Buffett-style quality bar.

What is James Hardie Industries plc's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to JHX based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes JHX a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

JHX - James Hardie Industries plc

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $24.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

D 37.9 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

F 19.6

5yr Avg ROIC 3.6% 28/100
Operating Margin Trend -2.20 pp/yr 0/100

Capital Efficiency

Weight: 15%

F 26.8

5yr Avg ROE 6.3% 41/100
5yr Share-Count CAGR 5.2% 0/100

Growth Quality

Weight: 10%

C- 48.7

5yr Revenue CAGR 7.5% 73/100
5yr EPS CAGR -34.5% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

B+ 78.3

5yr FCF Margin 8.0% 62/100
5yr FCF/NI Conversion 0.98x 98/100

Balance Sheet

Weight: 25%

F 18.8

Net Debt / EBITDA 6.25x 6/100
Interest Coverage (EBIT/Int) 1.94x 27/100
Altman Z-Score 1.70 33/100

Stability

Weight: 20%

C- 48.3

EPS Volatility (σ/μ) 0.48 33/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 2 added; 1 trimmed.

Holders: 3 +1
Avg Δ position: +8228.3%
New buys: 0
Full exits: 0

Wood increased +16458%
Greenblatt decreased -1%
Cooperman increased

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.