CRH PLC (CRH) Stock Fundamental Analysis
NYSE:CRH - New York Stock Exchange, Inc. - IE0001827041 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CRH. CRH was compared to 12 industry peers in the Construction Materials industry. While CRH is still in line with the averages on profitability rating, there are concerns on its financial health. CRH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRH was profitable.
CRH had a positive operating cash flow in the past year.
CRH had positive earnings in each of the past 5 years.
Each year in the past 5 years CRH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CRH (6.90%) is worse than 75.00% of its industry peers.
The Return On Equity of CRH (16.16%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.33%, CRH is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 16.16% | ||
| ROIC | 9.33% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 9.82%, CRH perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CRH has grown nicely.
CRH has a worse Operating Margin (13.78%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CRH has grown nicely.
With an excellent Gross Margin value of 35.70%, CRH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CRH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.78% | ||
| PM (TTM) | 9.82% | ||
| GM | 35.71% |
OM growth 3Y6.97%
OM growth 5Y6.8%
PM growth 3Y2.92%
PM growth 5Y9.98%
GM growth 3Y2%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
CRH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for CRH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.02 indicates that CRH is not in any danger for bankruptcy at the moment.
CRH has a Altman-Z score of 3.02. This is in the lower half of the industry: CRH underperforms 66.67% of its industry peers.
CRH has a debt to FCF ratio of 5.90. This is a neutral value as CRH would need 5.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.90, CRH is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that CRH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, CRH perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 3.02 |
ROIC/WACC1.26
WACC7.4%
2.3 Liquidity
CRH has a Current Ratio of 1.37. This is a normal value and indicates that CRH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, CRH is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that CRH may have some problems paying its short term obligations.
With a Quick ratio value of 0.91, CRH is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
CRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.16%, which is quite good.
The Earnings Per Share has been growing by 12.30% on average over the past years. This is quite good.
CRH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.78%.
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)16.16%
EPS 3Y14.89%
EPS 5Y12.3%
EPS Q2Q%-76.56%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y6.79%
Revenue growth 5Y4.8%
Sales Q2Q%-74.62%
3.2 Future
CRH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.35% yearly.
Based on estimates for the next years, CRH will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y24.85%
EPS Next 2Y18.37%
EPS Next 3Y15.37%
EPS Next 5Y10.35%
Revenue Next Year5.28%
Revenue Next 2Y5.46%
Revenue Next 3Y5.53%
Revenue Next 5Y6.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.80, the valuation of CRH can be described as rather expensive.
CRH's Price/Earnings ratio is in line with the industry average.
CRH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 14.26 indicates a correct valuation of CRH.
CRH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRH is cheaper than 75.00% of the companies in the same industry.
CRH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
CRH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRH is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CRH is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.02 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CRH's earnings are expected to grow with 15.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.45
EPS Next 2Y18.37%
EPS Next 3Y15.37%
5. Dividend
5.1 Amount
CRH has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.70, CRH pays a better dividend. On top of this CRH pays more dividend than 83.33% of the companies listed in the same industry.
CRH's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
On average, the dividend of CRH grows each year by 11.83%, which is quite nice.
CRH has paid a dividend for at least 10 years, which is a reliable track record.
As CRH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.83%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
CRH pays out 48.85% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of CRH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.85%
EPS Next 2Y18.37%
EPS Next 3Y15.37%
84.75
-0.27 (-0.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners87.98%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change28.07%
Market Cap60.31B
Analysts82.4
Price Target118.39 (39.69%)
Short Float %1.82%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend1.31
Dividend Growth(5Y)11.83%
DP48.85%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.98%
Min EPS beat(2)-30.14%
Max EPS beat(2)-7.83%
EPS beat(4)2
Avg EPS beat(4)-8.96%
Min EPS beat(4)-30.14%
Max EPS beat(4)1.15%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-1.38%
Revenue beat(4)1
Avg Revenue beat(4)-2.18%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)1.29%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.08%
PT rev (3m)1.57%
EPS NQ rev (1m)-20.95%
EPS NQ rev (3m)-1133.29%
EPS NY rev (1m)-3.24%
EPS NY rev (3m)-3.66%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 14.26 | ||
| P/S | 1.7 | ||
| P/FCF | 25.02 | ||
| P/OCF | 12.09 | ||
| P/B | 2.79 | ||
| P/tB | 6.46 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)4.76
EY5.62%
EPS(NY)5.94
Fwd EY7.01%
FCF(TTM)3.39
FCFY4%
OCF(TTM)7.01
OCFY8.27%
SpS49.98
BVpS30.36
TBVpS13.12
PEG (NY)0.72
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 16.16% | ||
| ROCE | 12.16% | ||
| ROIC | 9.33% | ||
| ROICexc | 10.32% | ||
| ROICexgc | 15.54% | ||
| OM | 13.78% | ||
| PM (TTM) | 9.82% | ||
| GM | 35.71% | ||
| FCFM | 6.78% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y6.97%
OM growth 5Y6.8%
PM growth 3Y2.92%
PM growth 5Y9.98%
GM growth 3Y2%
GM growth 5Y1.6%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.9 | ||
| Debt/EBITDA | 1.68 | ||
| Cap/Depr | 143.38% | ||
| Cap/Sales | 7.25% | ||
| Interest Coverage | 8.18 | ||
| Cash Conversion | 74.46% | ||
| Profit Quality | 69.04% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.02 |
F-Score6
WACC7.4%
ROIC/WACC1.26
Cap/Depr(3y)117.73%
Cap/Depr(5y)100.01%
Cap/Sales(3y)5.73%
Cap/Sales(5y)5.23%
Profit Quality(3y)75.96%
Profit Quality(5y)118.22%
High Growth Momentum
Growth
EPS 1Y (TTM)16.16%
EPS 3Y14.89%
EPS 5Y12.3%
EPS Q2Q%-76.56%
EPS Next Y24.85%
EPS Next 2Y18.37%
EPS Next 3Y15.37%
EPS Next 5Y10.35%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y6.79%
Revenue growth 5Y4.8%
Sales Q2Q%-74.62%
Revenue Next Year5.28%
Revenue Next 2Y5.46%
Revenue Next 3Y5.53%
Revenue Next 5Y6.14%
EBIT growth 1Y9.69%
EBIT growth 3Y14.23%
EBIT growth 5Y11.93%
EBIT Next Year46.76%
EBIT Next 3Y18.83%
EBIT Next 5Y13.51%
FCF growth 1Y-24.66%
FCF growth 3Y-3.17%
FCF growth 5Y-0.78%
OCF growth 1Y-0.56%
OCF growth 3Y5.82%
OCF growth 5Y5.15%