S&P/ASX 200 Index (ASX: XJO) shares, like the rest of the market, have seen plenty of volatility this year.
Even among the venerable blue chips, share price swings of 10% or more in a week have not been uncommon in 2022.
While that can add some angst for those investors checking the daily performance of their ASX 200 share portfolios, it can also throw up some opportunities.
Asked what investments he's made to capitalise on the recent volatility, Matt Williams, portfolio manager at Airlie Funds Management, named building materials company James Hardie Industries PLC (ASX: JHX).
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ASX 200 share trading on a very attractive multiple
According to Williams (quoted by The Australian Financial Review):
We've added to our James Hardie position. It's a rare high-quality global company that has such a strong position in its markets and achieves high returns on capital, yet it's trading on a very attractive multiple.
At the current share price of $35.61, James Hardie trades at a price-to-earnings (P/E) ratio of 21 times.
Williams also sees a lot of longer-term growth potential for this ASX 200 share:
The market is concerned about the US housing cycle, but I'd be very surprised if in three to five years this company is not in a lot stronger position and the share price a lot higher due to its continued penetration into the housing siding market.
Then there are the strong profit margins.
"Every other building materials company in the world would kill to earn the 20% plus margins and 20% plus return on capital that Hardies produces," Williams said.
James Hardie snapshot
James Hardie has a market cap of $15.1 billion. The ASX 200 share pays a trailing dividend yield of 2.0%, unfranked.
This year has been a tough one for the James Hardie share price, down 41% since the opening bell on 4 January. That compares to the 12% loss posted by the ASX 200.
Longer term, James Hardie shares are up 54% over the past five years.
