What the bad jobs report means for markets
James Hardie Industries SE (NYSE:JHX), a leading building materials company, has seen its stock price touch a 52-week low, reaching $19.82 USD. According to InvestingPro analysis, the stock's RSI indicates oversold territory, while the company maintains strong fundamentals with a healthy current ratio of 2.18. This latest price level reflects a significant downturn for the company, which has experienced a 1-year change with a sharp decline of -48.51%. Investors are closely monitoring the stock as it navigates through a challenging market environment, with the 52-week low marking a critical point of interest for potential buyers looking for value or current shareholders considering their positions. InvestingPro analysis indicates the stock is currently trading below its Fair Value, while management has been actively buying back shares. The company's performance and future outlook remain key factors as market participants assess the potential for recovery or further decline, with analyst targets suggesting significant upside potential. For deeper insights into JHX's valuation and 14 additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.
In other recent news, James Hardie Industries has announced its acquisition of The AZEK Company for $8.75 billion, including $386 million of AZEK's net debt. This merger is expected to increase James Hardie's revenue to approximately $5.4 billion and enhance its EBITDA margin to 27% on a pro forma basis, according to Moody's. The acquisition will be financed through new debt and equity, with AZEK shareholders receiving cash and shares in James Hardie. Fitch Ratings has placed AZEK on a positive rating watch due to the anticipated benefits of the merger, which include expanded product offerings and increased geographic diversification.
Moody's has revised James Hardie's outlook to stable from positive, reflecting the additional leverage from the acquisition and the time required to reduce it. Meanwhile, Fitch has changed James Hardie's rating outlook to negative, citing concerns about increased EBITDA leverage. Despite these concerns, Fitch maintains James Hardie's Issuer Default Rating at 'BBB', acknowledging the strategic benefits of the acquisition. BofA Securities has upgraded James Hardie's stock to a Buy rating with a price target of AUD43.40, highlighting the company's competitive position and potential growth from the AZEK acquisition.
Moody's has placed AZEK's ratings on review for a potential upgrade, considering the stronger credit profile James Hardie brings to the table. The acquisition is projected to close in the second half of 2025, pending shareholder and regulatory approvals. These developments reflect significant strategic moves by James Hardie to enhance its market position and financial performance.
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