CRH PLC (CRH) Stock Fundamental Analysis
USA - NYSE:CRH - IE0001827041 - Common Stock
116.94 USD
-1.64 (-1.38%)
117.03 USD
+0.09 (+0.08%)
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.
1. Profitability
1.1 Basic Checks
In the past year CRH was profitable.
CRH had a positive operating cash flow in the past year.
In the past 5 years CRH has always been profitable.
Each year in the past 5 years CRH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CRH (6.12%) is better than 69.23% of its industry peers.
Looking at the Return On Equity, with a value of 14.79%, CRH is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Return On Invested Capital of CRH (8.60%) is better than 61.54% 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 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 14.79% | ||
| ROIC | 8.6% |
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
The Profit Margin of CRH (9.09%) is worse than 69.23% of its industry peers.
In the last couple of years the Profit Margin of CRH has grown nicely.
CRH's Operating Margin of 13.97% is on the low side compared to the rest of the industry. CRH is outperformed by 69.23% of its industry peers.
In the last couple of years the Operating Margin of CRH has grown nicely.
The Gross Margin of CRH (35.99%) is better than 84.62% of its industry peers.
CRH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.97% | ||
| PM (TTM) | 9.09% | ||
| GM | 35.99% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRH is creating some value.
CRH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CRH has been reduced compared to 5 years ago.
The debt/assets ratio for CRH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.33 indicates that CRH is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.33, CRH is doing good in the industry, outperforming 61.54% of the companies in the same industry.
The Debt to FCF ratio of CRH is 7.23, which is on the high side as it means it would take CRH, 7.23 years of fcf income to pay off all of its debts.
CRH's Debt to FCF ratio of 7.23 is fine compared to the rest of the industry. CRH outperforms 61.54% of its industry peers.
CRH has a Debt/Equity ratio of 0.66. This is a neutral value indicating CRH is somewhat dependend on debt financing.
The Debt to Equity ratio of CRH (0.66) is worse than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.23 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.22
WACC7.04%
2.3 Liquidity
A Current Ratio of 1.74 indicates that CRH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.74, CRH perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that CRH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, CRH is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
CRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.06%, which is quite good.
The Earnings Per Share has been growing by 12.30% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.78% in the past year.
CRH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.80% yearly.
EPS 1Y (TTM)16.06%
EPS 3Y14.85%
EPS 5Y12.3%
EPS Q2Q%5.95%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y6.79%
Revenue growth 5Y4.8%
Sales Q2Q%5.72%
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 10.17% yearly.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y18.94%
EPS Next 2Y15.13%
EPS Next 3Y13.3%
EPS Next 5Y10.17%
Revenue Next Year4.74%
Revenue Next 2Y5%
Revenue Next 3Y5.41%
Revenue Next 5Y5.46%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.26, the valuation of CRH can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as CRH.
When comparing the Price/Earnings ratio of CRH to the average of the S&P500 Index (27.29), we can say CRH is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.53, 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 22.85. CRH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CRH.
69.23% of the companies in the same industry are more expensive than CRH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.05 | ||
| EV/EBITDA | 13.61 |
4.3 Compensation for Growth
CRH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CRH may justify a higher PE ratio.
A more expensive valuation may be justified as CRH's earnings are expected to grow with 13.30% in the coming years.
PEG (NY)1.28
PEG (5Y)1.97
EPS Next 2Y15.13%
EPS Next 3Y13.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, 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 4.27. CRH pays more dividend than 84.62% of the companies in the same industry.
With a Dividend Yield of 1.26, CRH pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
29.51% of the earnings are spent on dividend by CRH. This is a low number and sustainable payout ratio.
The dividend of CRH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.51%
EPS Next 2Y15.13%
EPS Next 3Y13.3%
116.94
-1.64 (-1.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners84.89%
Inst Owner Change0.46%
Ins Owners0.14%
Ins Owner Change-4.02%
Market Cap83.22B
Analysts82.14
Price Target122.47 (4.73%)
Short Float %1.89%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend2.49
Dividend Growth(5Y)25.12%
DP29.51%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-31.96%
Min EPS beat(2)-64.29%
Max EPS beat(2)0.37%
EPS beat(4)1
Avg EPS beat(4)-25.47%
Min EPS beat(4)-64.29%
Max EPS beat(4)0.37%
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)-0.65%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)-0.33%
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)2.29%
PT rev (3m)6.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)-0.65%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 18.53 | ||
| P/S | 2.29 | ||
| P/FCF | 38.05 | ||
| P/OCF | 16.86 | ||
| P/B | 3.72 | ||
| P/tB | 8.82 | ||
| EV/EBITDA | 13.61 |
EPS(TTM)4.82
EY4.12%
EPS(NY)6.31
Fwd EY5.4%
FCF(TTM)3.07
FCFY2.63%
OCF(TTM)6.93
OCFY5.93%
SpS51.07
BVpS31.4
TBVpS13.25
PEG (NY)1.28
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.12% | ||
| ROE | 14.79% | ||
| ROCE | 11.21% | ||
| ROIC | 8.6% | ||
| ROICexc | 9.19% | ||
| ROICexgc | 13.19% | ||
| OM | 13.97% | ||
| PM (TTM) | 9.09% | ||
| GM | 35.99% | ||
| FCFM | 6.02% |
ROA(3y)7.37%
ROA(5y)6.1%
ROE(3y)16.28%
ROE(5y)13.51%
ROIC(3y)8.86%
ROIC(5y)7.89%
ROICexc(3y)10.41%
ROICexc(5y)9.38%
ROICexgc(3y)15.61%
ROICexgc(5y)13.93%
ROCE(3y)11.55%
ROCE(5y)10.28%
ROICexcg growth 3Y9.81%
ROICexcg growth 5Y8.83%
ROICexc growth 3Y8.61%
ROICexc growth 5Y8.01%
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 7.23 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 138.65% | ||
| Cap/Sales | 7.56% | ||
| Interest Coverage | 8.01 | ||
| Cash Conversion | 69.92% | ||
| Profit Quality | 66.19% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.33 |
F-Score6
WACC7.04%
ROIC/WACC1.22
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)16.06%
EPS 3Y14.85%
EPS 5Y12.3%
EPS Q2Q%5.95%
EPS Next Y18.94%
EPS Next 2Y15.13%
EPS Next 3Y13.3%
EPS Next 5Y10.17%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y6.79%
Revenue growth 5Y4.8%
Sales Q2Q%5.72%
Revenue Next Year4.74%
Revenue Next 2Y5%
Revenue Next 3Y5.41%
Revenue Next 5Y5.46%
EBIT growth 1Y9.69%
EBIT growth 3Y14.23%
EBIT growth 5Y11.93%
EBIT Next Year47.67%
EBIT Next 3Y19.01%
EBIT Next 5Y14.07%
FCF growth 1Y-10.66%
FCF growth 3Y-3.17%
FCF growth 5Y-0.78%
OCF growth 1Y18.15%
OCF growth 3Y5.82%
OCF growth 5Y5.15%