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.
Key Considerations for Quality Investors.
The 5-year revenue growth of CRH PLC has been remarkable, with 6.58% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
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.
CRH PLC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.21, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
With a robust Profit Quality (5-year) ratio of 121.0%, CRH PLC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
With a robust 5-year EBIT growth of 12.96%, CRH PLC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
With EBIT 5-year growth outpacing its Revenue 5-year growth, CRH PLC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
What is the full fundamental picture of NYSE:CRH telling us.
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.
We assign a fundamental rating of 5 out of 10 to CRH. CRH was compared to 12 industry peers in the Construction Materials industry. CRH has only an average score on both its financial health and profitability. CRH has a valuation in line with the averages, but it does not seem to be growing.
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.