James Hardie IndustriesJHX -0.91%46 Operating Margin % is 15.49% as of Mar. 2026, which is 21% below its 10-year median of 19.69. GuruFocus rates JHX with a GF Score™ of 46/100. The stock has 10 warning signs investors should review. Among 402 Building Materials companies, James Hardie Industries ranks better than 76.62% on this metric.
James Hardie Industries (NYSE:JHX) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
James Hardie Industries Operating Margin % Related Terms
James Hardie Industries Operating Margin % Historical Data
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The historical data trend for James Hardie Industries's Operating Margin % 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.
JHX vs EXP, KNF, TTAM: Operating Margin % Comparison
For the Building Materials subindustry, James Hardie Industries's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, James Hardie Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where James Hardie Industries's Operating Margin % falls into.
James Hardie Industries Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
James Hardie Industries's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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 Operating Margin % of 15.49% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on James Hardie Industries and its competitors. This is 21% below median its historical median of 19.69. Over the past decade, James Hardie Industries' Operating Margin % has ranged from 14.94 to 23.86. According to the industry distribution chart, James Hardie Industries ranks #94 out of 402 companies in the Building Materials industry, placing it in the top 23.4%.
Is James Hardie Industries' Operating Margin % too high?
James Hardie Industries' current Operating Margin % of 15.49% is 21% below median its 10-year median of 19.69. Over the past 10 years, this metric has ranged from a low of 14.94 to a high of 23.86. The Building Materials industry median Operating Margin % is 7.63. James Hardie Industries' value of 15.49% is 103% above this industry median. Based on the distribution chart, James Hardie Industries ranks #94 out of 402 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to EXP and KNF?
According to the Building Materials industry distribution chart, James Hardie Industries ranks #94 out of 402 companies for Operating Margin %. This places James Hardie Industries in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.63. James Hardie Industries' value of 15.49% is 103% above this benchmark. Historically, James Hardie Industries' own Operating Margin % has ranged from 14.94 to 23.86 over the past decade. While the company's 10-year median is 19.69 vs. the industry median of 7.63, James Hardie Industries has consistently been above 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 Operating Margin % for a Building Materials company?
The median Operating Margin % among Building Materials companies is 7.63, based on 402 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. James Hardie Industries's current Operating Margin % of 15.49% is 103% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on James Hardie Industries and its competitors. For the Building Materials industry, the median Operating Margin % is 7.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. James Hardie Industries's current Operating Margin % is 15.49%, which is 21% below median its own 10-year median of 19.69. 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 Operating Margin % of 15.49%. The current Operating Margin % is 15.49%, which is 21% below median its 10-year median of 19.69 and 103% above the Building Materials industry median of 7.63. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For James Hardie Industries (JHX), the current Operating Margin % is 15.49% 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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