James Hardie IndustriesJHX +2.34%46 Interest Coverage is 3.49 as of Mar. 2026, which is 73% below its 10-year median of 12.76. GuruFocus rates JHX with a GF Score™ of 46/100. The stock has 10 warning signs investors should review. Among 307 Building Materials companies, James Hardie Industries ranks worse than 70.36% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. James Hardie Industries's
Operating Income
for the
three
months ended in Mar. 2026 was $217 Mil. James Hardie Industries's Interest Expense for the
three
months ended in Mar. 2026 was $-62 Mil.
James Hardie Industries's interest coverage for the quarter that ended in Mar. 2026 was 3.49.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for James Hardie Industries's Interest Coverage or its related term are showing as below:
JHX'
s Interest Coverage Range Over the Past 10 Years
Min: 3.13 Med: 12.76 Max: 83.52
Current: 3.13
JHX's Interest Coverage is ranked worse than 70.36% of 307
companies
in the Building Materials industry
Industry Median: 6.63
vs JHX: 3.13
James Hardie Industries (NYSE:JHX) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
James Hardie Industries Interest Coverage Related Terms
James Hardie Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for James Hardie Industries's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
JHX vs EXP, KNF, USLM: Interest Coverage Comparison
For the Building Materials subindustry, James Hardie Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
James Hardie Industries Interest Coverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, James Hardie Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where James Hardie Industries's Interest Coverage falls into.
James Hardie Industries Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
James Hardie Industries (JHX) has a Interest Coverage of 3.49 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on James Hardie Industries and its competitors. This is 73% below median its historical median of 12.76. Over the past decade, James Hardie Industries' Interest Coverage has ranged from 3.13 to 83.52. According to the industry distribution chart, James Hardie Industries ranks #216 out of 307 companies in the Building Materials industry, placing it in the top 70.4%.
Is James Hardie Industries' Interest Coverage too high?
James Hardie Industries' current Interest Coverage of 3.49 is 73% below median its 10-year median of 12.76. Over the past 10 years, this metric has ranged from a low of 3.13 to a high of 83.52. The Building Materials industry median Interest Coverage is 6.63. James Hardie Industries' value of 3.49 is 47.4% below this industry median. Based on the distribution chart, James Hardie Industries ranks #216 out of 307 companies in the Building Materials industry, which is below the industry midpoint. Overall, James Hardie Industries has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does James Hardie Industries' Interest Coverage compare to EXP and KNF?
According to the Building Materials industry distribution chart, James Hardie Industries ranks #216 out of 307 companies for Interest Coverage. This places James Hardie Industries in the lower half of its industry. The industry median Interest Coverage is 6.63. James Hardie Industries' value of 3.49 is 47.4% below this benchmark. Historically, James Hardie Industries' own Interest Coverage has ranged from 3.13 to 83.52 over the past decade. While the company's 10-year median is 12.76 vs. the industry median of 6.63, James Hardie Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Building Materials company?
The median Interest Coverage among Building Materials companies is 6.63, based on 307 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. James Hardie Industries's current Interest Coverage of 3.49 is 47.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on James Hardie Industries and its competitors. For the Building Materials industry, the median Interest Coverage is 6.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. James Hardie Industries's current Interest Coverage is 3.49, which is 73% below median its own 10-year median of 12.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is James Hardie Industries stock overvalued right now?
James Hardie Industries (JHX) has a current Interest Coverage of 3.49. The current Interest Coverage is 3.49, which is 73% below median its 10-year median of 12.76 and 47.4% below the Building Materials industry median of 6.63. James Hardie Industries' overall GF Score™ is 46/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For James Hardie Industries (JHX), the current Interest Coverage is 3.49 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
James Hardie is a manufacturer of fiber cement-based building products, selling primarily to the residential construction industry. North America is the primary geography, generating about 80% of group earnings. Here, it is the largest manufacturer of fiber cement, which is mainly used for exterior siding on houses. Following the Azek acquisition in 2025, it also produces wooden composite decking materials, siding trims, and accessories for outdoor areas including stair and deck railing. Businesses in Australia, New Zealand, and Europe, make up the rest of earnings.
46GF Score
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