Analyzing the Quality Characteristics of CRH PLC (NYSE:CRH).

In this article we will dive into CRH PLC (NYSE:CRH) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CRH PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• CRH PLC has shown strong performance in revenue growth over the past 5 years, with a 6.58% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of CRH PLC stands at 16.07%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 4.21, CRH PLC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• CRH PLC exhibits impressive Profit Quality (5-year) with a 121.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• CRH PLC has consistently achieved strong EBIT growth over the past 5 years, with a 12.96% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• CRH PLC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall CRH gets a fundamental rating of 5 out of 10. We evaluated CRH against 12 industry peers in the Construction Materials industry. While CRH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CRH is cheap, but on the other hand it scores bad on growth. This makes CRH very considerable for value investing!

Check the latest full fundamental report of CRH for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.