CRH PLC (CRH)
IE0001827041 - Common Stock
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 is still in line with the averages on profitability rating, there are concerns on its financial health. CRH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CRH had positive earnings in the past year.
CRH had positive earnings in 4 of the past 5 years.
Of the past 5 years CRH 4 years had a positive operating cash flow.
1.2 Ratios
CRH has a Return On Assets of 11.65%. This is in the better half of the industry: CRH outperforms 66.67% of its industry peers.
CRH has a better Return On Equity (27.28%) than 83.33% of its industry peers.
CRH's Return On Invested Capital of 15.49% is fine compared to the rest of the industry. CRH outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CRH is significantly below the industry average of 19.73%.
The last Return On Invested Capital (15.49%) for CRH is above the 3 year average (8.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 27.28% | ||
| ROIC | 15.49% |
ROA(3y)7.03%
ROA(5y)5.44%
ROE(3y)15.22%
ROE(5y)12.08%
ROIC(3y)8.05%
ROIC(5y)7.11%
1.3 Margins
CRH's Profit Margin of 9.68% is in line compared to the rest of the industry. CRH outperforms 41.67% of its industry peers.
In the last couple of years the Profit Margin of CRH has declined.
CRH has a Operating Margin (13.20%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CRH has grown nicely.
Looking at the Gross Margin, with a value of 34.88%, CRH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of CRH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.2% | ||
| PM (TTM) | 9.68% | ||
| GM | 34.88% |
OM growth 3Y6.45%
OM growth 5Y7.01%
PM growth 3Y30.76%
PM growth 5Y-2.84%
GM growth 3Y0.1%
GM growth 5Y0.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CRH is creating 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 3.83 indicates that CRH is not in any danger for bankruptcy at the moment.
CRH has a Altman-Z score (3.83) which is in line with its industry peers.
CRH has a Debt/Equity ratio of 0.50. This is a neutral value indicating CRH is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.50, CRH perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.83 |
ROIC/WACC2.33
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.39 indicates that CRH should not have too much problems paying its short term obligations.
The Current ratio of CRH (1.39) is worse than 66.67% of its industry peers.
CRH has a Quick Ratio of 1.39. This is a bad value and indicates that CRH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, CRH is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CRH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.66%.
Measured over the past 5 years, CRH shows a small growth in Earnings Per Share. The EPS has been growing by 4.85% on average per year.
The Revenue has been growing slightly by 6.80% in the past year.
The Revenue has been growing slightly by 4.95% on average over the past years.
EPS 1Y (TTM)-13.66%
EPS 3Y45.34%
EPS 5Y4.85%
EPS Q2Q%N/A
Revenue 1Y (TTM)6.8%
Revenue growth 3Y8.2%
Revenue growth 5Y4.95%
Sales Q2Q%N/A
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 11.26% yearly.
Based on estimates for the next years, CRH will show a small growth in Revenue. The Revenue will grow by 4.77% on average per year.
EPS Next Y22.18%
EPS Next 2Y16.85%
EPS Next 3Y15.14%
EPS Next 5Y11.26%
Revenue Next Year2.57%
Revenue Next 2Y4.78%
Revenue Next 3Y5.03%
Revenue Next 5Y4.77%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
CRH is valuated reasonably with a Price/Earnings ratio of 11.47.
Based on the Price/Earnings ratio, CRH is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.42. CRH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 15.05, which indicates a correct valuation of CRH.
83.33% of the companies in the same industry are more expensive than CRH, based on the Price/Forward Earnings ratio.
CRH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than CRH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.87 |
4.3 Compensation for Growth
CRH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CRH may justify a higher PE ratio.
CRH's earnings are expected to grow with 15.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)2.36
EPS Next 2Y16.85%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
CRH has a Yearly Dividend Yield of 1.42%.
Compared to an average industry Dividend Yield of 3.59, CRH pays a better dividend. On top of this CRH pays more dividend than 83.33% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.24, CRH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of CRH is nicely growing with an annual growth rate of 11.83%!
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
40.37% of the earnings are spent on dividend by CRH. This is a bit on the high side, but may be sustainable.
CRH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.37%
EPS Next 2Y16.85%
EPS Next 3Y15.14%
CRH PLC
NYSE:CRH (12/19/2024, 8:25:57 PM)
Premarket: 91.96 -1.1 (-1.18%)93.06
-0.65 (-0.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners0.24%
Inst Owner Change53.04%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap66.23B
Analysts83.2
Price Target113.89 (22.38%)
Short Float %1.43%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)11.83%
DP40.37%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.34%
Min EPS beat(2)-7.83%
Max EPS beat(2)1.15%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-3.72%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)-1.38%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)7.42%
PT rev (3m)9.38%
EPS NQ rev (1m)3.98%
EPS NQ rev (3m)3.26%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 15.05 | ||
| P/S | 1.07 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.03 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)8.11
EY8.71%
EPS(NY)6.18
Fwd EY6.65%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS86.63
BVpS30.74
TBVpS13.86
PEG (NY)0.52
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.65% | ||
| ROE | 27.28% | ||
| ROCE | 20.08% | ||
| ROIC | 15.49% | ||
| ROICexc | 16.79% | ||
| ROICexgc | 24.68% | ||
| OM | 13.2% | ||
| PM (TTM) | 9.68% | ||
| GM | 34.88% | ||
| FCFM | N/A |
ROA(3y)7.03%
ROA(5y)5.44%
ROE(3y)15.22%
ROE(5y)12.08%
ROIC(3y)8.05%
ROIC(5y)7.11%
ROICexc(3y)9.7%
ROICexc(5y)8.76%
ROICexgc(3y)14.39%
ROICexgc(5y)12.91%
ROCE(3y)10.42%
ROCE(5y)9.43%
ROICexcg growth 3Y14.23%
ROICexcg growth 5Y3.01%
ROICexc growth 3Y13.51%
ROICexc growth 5Y5.92%
OM growth 3Y6.45%
OM growth 5Y7.01%
PM growth 3Y30.76%
PM growth 5Y-2.84%
GM growth 3Y0.1%
GM growth 5Y0.64%
F-ScoreN/A
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.83 |
F-ScoreN/A
WACC6.64%
ROIC/WACC2.33
Cap/Depr(3y)99.28%
Cap/Depr(5y)86.71%
Cap/Sales(3y)5.09%
Cap/Sales(5y)4.75%
Profit Quality(3y)86.61%
Profit Quality(5y)133.63%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.66%
EPS 3Y45.34%
EPS 5Y4.85%
EPS Q2Q%N/A
EPS Next Y22.18%
EPS Next 2Y16.85%
EPS Next 3Y15.14%
EPS Next 5Y11.26%
Revenue 1Y (TTM)6.8%
Revenue growth 3Y8.2%
Revenue growth 5Y4.95%
Sales Q2Q%N/A
Revenue Next Year2.57%
Revenue Next 2Y4.78%
Revenue Next 3Y5.03%
Revenue Next 5Y4.77%
EBIT growth 1Y15.91%
EBIT growth 3Y15.19%
EBIT growth 5Y12.3%
EBIT Next Year53.21%
EBIT Next 3Y21.86%
EBIT Next 5Y14.59%
FCF growth 1Y42.48%
FCF growth 3Y2.84%
FCF growth 5Y28.26%
OCF growth 1Y32.03%
OCF growth 3Y8.41%
OCF growth 5Y17.44%