We assign a fundamental rating of 5 out of 10 to CRH. CRH was compared to 13 industry peers in the Construction Materials industry. CRH has an average financial health and profitability rating. CRH has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CRH had positive earnings in the past year.
In the past year CRH had a positive cash flow from operations.
In the past 5 years CRH has always been profitable.
CRH had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

CRH's Return On Assets of 5.86% is in line compared to the rest of the industry. CRH outperforms 53.85% of its industry peers.
CRH has a Return On Equity of 14.72%. This is in the better half of the industry: CRH outperforms 69.23% of its industry peers.
CRH's Return On Invested Capital of 8.44% is fine compared to the rest of the industry. CRH outperforms 69.23% of its industry peers.
CRH had an Average Return On Invested Capital over the past 3 years of 8.86%. This is in line with the industry average of 9.37%.

		Industry Rank	Sector Rank
ROA	5.86%
ROE	14.72%
ROIC	8.44%

ROA(3y)7.37%

ROA(5y)6.1%

ROE(3y)16.28%

ROE(5y)13.51%

ROIC(3y)8.86%

ROIC(5y)7.89%

1.3 Margins

CRH has a worse Profit Margin (9.30%) than 61.54% of its industry peers.
In the last couple of years the Profit Margin of CRH has grown nicely.
The Operating Margin of CRH (13.98%) is worse than 69.23% of its industry peers.
In the last couple of years the Operating Margin of CRH has grown nicely.
CRH has a Gross Margin of 36.13%. This is amongst the best in the industry. CRH outperforms 84.62% of its industry peers.
In the last couple of years the Gross Margin of CRH has grown nicely.

		Industry Rank	Sector Rank
OM	13.98%
PM (TTM)	9.3%
GM	36.13%

OM growth 3Y6.97%

OM growth 5Y6.8%

PM growth 3Y2.92%

PM growth 5Y9.98%

GM growth 3Y2%

GM growth 5Y1.6%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRH is still creating some value.
Compared to 1 year ago, CRH has less shares outstanding
The number of shares outstanding for CRH has been reduced compared to 5 years ago.
CRH has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.13 indicates that CRH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.13, CRH is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
CRH has a debt to FCF ratio of 7.37. This is a slightly negative value and a sign of low solvency as CRH would need 7.37 years to pay back of all of its debts.
CRH has a Debt to FCF ratio of 7.37. This is comparable to the rest of the industry: CRH outperforms 53.85% of its industry peers.
CRH has a Debt/Equity ratio of 0.65. This is a neutral value indicating CRH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, CRH is not doing good in the industry: 69.23% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.65
Debt/FCF	7.37
Altman-Z	3.13

ROIC/WACC1.16

WACC7.26%

2.3 Liquidity

A Current Ratio of 1.45 indicates that CRH should not have too much problems paying its short term obligations.
CRH's Current ratio of 1.45 is on the low side compared to the rest of the industry. CRH is outperformed by 61.54% of its industry peers.
A Quick Ratio of 1.02 indicates that CRH should not have too much problems paying its short term obligations.
CRH has a worse Quick ratio (1.02) than 61.54% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.45
Quick Ratio	1.02

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.00%.
CRH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.30% yearly.
Looking at the last year, CRH shows a very negative growth in Revenue. The Revenue has decreased by -40.15% in the last year.
Measured over the past years, CRH shows a small growth in Revenue. The Revenue has been growing by 4.80% on average per year.

EPS 1Y (TTM)-40%

EPS 3Y14.85%

EPS 5Y12.3%

EPS Q2Q%13.33%

Revenue 1Y (TTM)-40.15%

Revenue growth 3Y6.79%

Revenue growth 5Y4.8%

Sales Q2Q%5.27%

3.2 Future

Based on estimates for the next years, CRH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.94% on average per year.
Based on estimates for the next years, CRH will show a small growth in Revenue. The Revenue will grow by 6.25% on average per year.

EPS Next Y18.16%

EPS Next 2Y13.77%

EPS Next 3Y12.85%

EPS Next 5Y11.94%

Revenue Next Year4.51%

Revenue Next 2Y5.34%

Revenue Next 3Y5.58%

Revenue Next 5Y6.25%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CRH is valuated rather expensively with a Price/Earnings ratio of 24.10.
CRH's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CRH to the average of the S&P500 Index (28.30), we can say CRH is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.87, the valuation of CRH can be described as rather expensive.
61.54% of the companies in the same industry are more expensive than CRH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.57. CRH is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	24.1
Fwd PE	19.87

4.2 Price Multiples

CRH's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CRH is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	33.44
EV/EBITDA	14.14

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CRH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CRH's earnings are expected to grow with 12.85% in the coming years.

PEG (NY)1.33

PEG (5Y)1.96

EPS Next 2Y13.77%

EPS Next 3Y12.85%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.19%, CRH has a reasonable but not impressive dividend return.
CRH's Dividend Yield is rather good when compared to the industry average which is at 2.03. CRH pays more dividend than 84.62% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.82, CRH is paying slightly less dividend.

		Industry Rank	Sector Rank
Dividend Yield	1.19%

5.2 History

On average, the dividend of CRH grows each year by 25.12%, which is quite nice.
CRH has paid a dividend for at least 10 years, which is a reliable track record.

Dividend Growth(5Y)25.12%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

CRH pays out 28.74% of its income as dividend. This is a sustainable payout ratio.
The dividend of CRH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.

DP28.74%

EPS Next 2Y13.77%

EPS Next 3Y12.85%

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CRH PLC / CRH FAQ

What is the ChartMill fundamental rating of CRH PLC (CRH) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CRH.

What is the valuation status of CRH PLC (CRH) stock?

ChartMill assigns a valuation rating of 5 / 10 to CRH PLC (CRH). This can be considered as Fairly Valued.

Can you provide the profitability details for CRH PLC?

CRH PLC (CRH) has a profitability rating of 6 / 10.

What is the financial health of CRH PLC (CRH) stock?

The financial health rating of CRH PLC (CRH) is 4 / 10.

Can you provide the dividend sustainability for CRH stock?

The dividend rating of CRH PLC (CRH) is 5 / 10 and the dividend payout ratio is 28.74%.