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Reasonable Growth, Debt Levels, and a High ROIC Make CRH PLC (NYSE:CRH) Appealing to Quality Investors.

By Mill Chart

Last update: Feb 26, 2024

In this article we will dive into CRH PLC (NYSE:CRH) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CRH PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:CRH.

  • CRH PLC has demonstrated significant revenue growth over the past 5 years, with a 6.58% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a robust ROIC excluding cash and goodwill at 16.22%, CRH PLC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • 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.
  • CRH PLC exhibits impressive Profit Quality (5-year) with a 121.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • The 5-year EBIT growth of CRH PLC has been remarkable, with 12.96% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, CRH PLC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NYSE:CRH?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall CRH gets a fundamental rating of 5 out of 10. We evaluated CRH against 12 industry peers in the Construction Materials industry. CRH has an average financial health and profitability rating. CRH has a valuation in line with the averages, but on the other hand it scores bad on growth.

Our latest full fundamental report of CRH contains the most current fundamental analsysis.

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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