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Why NYSE:CRH qualifies as a quality stock.

By Mill Chart

Last update: Dec 25, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CRH PLC (NYSE:CRH) is suited for quality investing. Investors should of course do their own research, but we spotted CRH PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:CRH highlighted

  • CRH PLC has demonstrated significant revenue growth over the past 5 years, with a 6.58% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 16.07%, CRH PLC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • 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.
  • The Profit Quality (5-year) of CRH PLC stands at 121.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • CRH PLC has experienced impressive EBIT growth over the past 5 years, with 12.96% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • CRH PLC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NYSE:CRH?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating 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. CRH has an excellent profitability rating, but there are some minor concerns on its financial health. CRH has a bad growth rate and is valued cheaply. This makes CRH very considerable for value investing!

Our latest full fundamental report of CRH contains the most current fundamental analsysis.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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