Employing more than 5,500 people, James Hardie Industries is a global building solutions company and manufacturer of fibre cement products. Its current main markets include North America, Europe, Australia and New Zealand.
“We view James Hardie Industries (JHX) as the highest quality building products business on the ASX, supported by a range of “quality factors”,” Raymond said.
“The currently depressed earnings multiple reflects the uncertain [US artificial decking maker] AZEK acquisition.
“More importantly however, earnings will continue to be correlated with US housing markets, which are likely toward the bottom of the cycle, hence why we see an opportunity,” Raymond said.
GRAPH OF James Hardie Industries (JHX)
