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Why quality investors should have a look at CRH PLC (NYSE:CRH).

By Mill Chart

Last update: Jan 15, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CRH PLC (NYSE:CRH) is suited for quality investing. Investors should of course do their own research, but we spotted CRH PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:CRH highlighted

  • The 5-year revenue growth of CRH PLC has been remarkable, with 6.58% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • CRH PLC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 16.07% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • CRH PLC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.21, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • The Profit Quality (5-year) of CRH PLC stands at 121.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • CRH PLC has consistently achieved strong EBIT growth over the past 5 years, with a 12.96% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of CRH PLC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NYSE:CRH

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to CRH. CRH was compared to 12 industry peers in the Construction Materials industry. While CRH has a great profitability rating, there are some minor concerns on its financial health. CRH is cheap, but on the other hand it scores bad on growth. These ratings could make CRH a good candidate for value investing.

Check the latest full fundamental report of CRH for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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