CRH PLC (CRH) Stock Fundamental Analysis
NYSE:CRH - New York Stock Exchange, Inc. - IE0001827041 - Common Stock - Currency: USD
Taking everything into account, CRH scores 6 out of 10 in our fundamental rating. CRH was compared to 13 industry peers in the Construction Materials industry. CRH has only an average score on both its financial health and profitability. CRH is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make CRH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year CRH was profitable.
In the past year CRH had a positive cash flow from operations.
In the past 5 years CRH has always been profitable.
In the past 5 years CRH always reported a positive cash flow from operatings.
1.2 Ratios
CRH's Return On Assets of 6.31% 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 15.51%. This is comparable to the rest of the industry: CRH outperforms 53.85% of its industry peers.
CRH has a Return On Invested Capital of 8.69%. This is in the better half of the industry: CRH outperforms 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 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 15.51% | ||
| ROIC | 8.69% |
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's Profit Margin of 9.15% is on the low side compared to the rest of the industry. CRH is outperformed by 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 (13.66%) is comparable to the rest of the industry.
CRH's Operating Margin has improved in the last couple of years.
CRH's Gross Margin of 35.57% is amongst the best of the industry. CRH outperforms 84.62% of its industry peers.
CRH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.66% | ||
| PM (TTM) | 9.15% | ||
| GM | 35.57% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRH is still creating some value.
CRH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CRH has less shares outstanding
CRH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.07 indicates that CRH is not in any danger for bankruptcy at the moment.
CRH has a Altman-Z score of 3.07. This is comparable to the rest of the industry: CRH outperforms 46.15% of its industry peers.
The Debt to FCF ratio of CRH is 6.74, which is on the high side as it means it would take CRH, 6.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CRH (6.74) is better than 61.54% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that CRH is somewhat dependend on debt financing.
CRH's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. CRH is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.26
WACC6.89%
2.3 Liquidity
A Current Ratio of 1.63 indicates that CRH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.63, CRH is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
CRH has a Quick Ratio of 1.07. This is a normal value and indicates that CRH is financially healthy and should not expect problems in meeting its short term obligations.
CRH's Quick ratio of 1.07 is in line compared to the rest of the industry. CRH outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.06% over the past year.
Measured over the past years, CRH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.30% on average per year.
CRH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.78%.
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%-83.33%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y6.79%
Revenue growth 5Y4.8%
Sales Q2Q%3.41%
3.2 Future
The Earnings Per Share is expected to grow by 11.47% on average over the next years. This is quite good.
Based on estimates for the next years, CRH will show a small growth in Revenue. The Revenue will grow by 5.46% on average per year.
EPS Next Y20.35%
EPS Next 2Y16.34%
EPS Next 3Y15.31%
EPS Next 5Y11.47%
Revenue Next Year5.09%
Revenue Next 2Y5.1%
Revenue Next 3Y5.58%
Revenue Next 5Y5.46%
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.
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
The Price/Earnings ratio is 20.00, which indicates a rather expensive current valuation of CRH.
CRH's Price/Earnings ratio is a bit cheaper when compared to the industry. CRH is cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of CRH to the average of the S&P500 Index (27.19), we can say CRH is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.62 indicates a correct valuation of CRH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRH indicates a rather cheap valuation: CRH is cheaper than 84.62% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CRH to the average of the S&P500 Index (35.33), we can say CRH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 14.62 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than CRH, based on the Enterprise Value to EBITDA ratio.
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 | 28.83 | ||
| EV/EBITDA | 11.78 |
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 15.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)1.63
EPS Next 2Y16.34%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
CRH has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.05, CRH pays a better dividend. On top of this CRH pays more dividend than 84.62% of the companies listed in the same industry.
CRH's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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
29.19% 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.
DP29.19%
EPS Next 2Y16.34%
EPS Next 3Y15.31%
94.19
-0.65 (-0.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners87.11%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner Change28.18%
Market Cap67.03B
Analysts83.85
Price Target114.54 (21.61%)
Short Float %1.76%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend2.49
Dividend Growth(5Y)25.12%
DP29.19%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-47.22%
Min EPS beat(2)-64.29%
Max EPS beat(2)-30.14%
EPS beat(4)1
Avg EPS beat(4)-25.28%
Min EPS beat(4)-64.29%
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)-1.77%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)-0.97%
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%
PT rev (3m)-3.25%
EPS NQ rev (1m)-3.33%
EPS NQ rev (3m)-4.26%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 14.62 | ||
| P/S | 1.87 | ||
| P/FCF | 28.83 | ||
| P/OCF | 13.29 | ||
| P/B | 3.17 | ||
| P/tB | 7.95 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)4.71
EY5%
EPS(NY)6.44
Fwd EY6.84%
FCF(TTM)3.27
FCFY3.47%
OCF(TTM)7.08
OCFY7.52%
SpS50.3
BVpS29.67
TBVpS11.85
PEG (NY)0.98
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 15.51% | ||
| ROCE | 11.32% | ||
| ROIC | 8.69% | ||
| ROICexc | 9.42% | ||
| ROICexgc | 13.81% | ||
| OM | 13.66% | ||
| PM (TTM) | 9.15% | ||
| GM | 35.57% | ||
| FCFM | 6.5% |
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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 144.68% | ||
| Cap/Sales | 7.59% | ||
| Interest Coverage | 7.93 | ||
| Cash Conversion | 74.49% | ||
| Profit Quality | 70.99% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.07 |
F-Score6
WACC6.89%
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)16.06%
EPS 3Y14.85%
EPS 5Y12.3%
EPS Q2Q%-83.33%
EPS Next Y20.35%
EPS Next 2Y16.34%
EPS Next 3Y15.31%
EPS Next 5Y11.47%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y6.79%
Revenue growth 5Y4.8%
Sales Q2Q%3.41%
Revenue Next Year5.09%
Revenue Next 2Y5.1%
Revenue Next 3Y5.58%
Revenue Next 5Y5.46%
EBIT growth 1Y9.69%
EBIT growth 3Y14.23%
EBIT growth 5Y11.93%
EBIT Next Year45.93%
EBIT Next 3Y19.16%
EBIT Next 5Y13.42%
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%