CRH PLC (CRH) Stock Fundamental Analysis
NYSE:CRH - New York Stock Exchange, Inc. - IE0001827041 - Common Stock - Currency: USD
CRH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Construction Materials industry. CRH has an average financial health and profitability rating. CRH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CRH had positive earnings in the past year.
In the past year CRH had a positive cash flow from operations.
CRH had positive earnings in each of the past 5 years.
In the past 5 years CRH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.31%, CRH is in line with its industry, outperforming 53.85% of the companies in the same industry.
With a Return On Equity value of 15.51%, CRH perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for CRH 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.
CRH's Profit Margin has improved in the last couple of years.
CRH's Operating Margin of 13.66% is in line compared to the rest of the industry. CRH outperforms 46.15% of its industry peers.
In the last couple of years the Operating Margin of CRH has grown nicely.
CRH has a Gross Margin of 35.57%. This is amongst the best in 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
CRH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CRH has less shares outstanding
Compared to 5 years ago, CRH has less shares outstanding
Compared to 1 year ago, CRH has a worse debt to assets ratio.
2.2 Solvency
CRH has an Altman-Z score of 3.08. This indicates that CRH is financially healthy and has little risk of bankruptcy at the moment.
CRH has a Altman-Z score (3.08) which is in line with its industry peers.
CRH has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as CRH would need 6.74 years to pay back of all of its debts.
CRH has a better Debt to FCF ratio (6.74) than 61.54% of its industry peers.
CRH has a Debt/Equity ratio of 0.68. This is a neutral value indicating CRH is somewhat dependend on debt financing.
CRH has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: CRH underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 3.08 |
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.
The Current ratio of CRH (1.63) is worse than 61.54% of its industry peers.
A Quick Ratio of 1.07 indicates that CRH should not have too much problems paying 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.
CRH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.30% yearly.
Looking at the last year, CRH shows a small growth in Revenue. The Revenue has grown by 1.78% in the last 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%-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.
CRH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.46% yearly.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.22, the valuation of CRH can be described as rather expensive.
69.23% of the companies in the same industry are more expensive than CRH, based on the Price/Earnings ratio.
CRH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.78, the valuation of CRH can be described as correct.
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 (21.76), we can say CRH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRH is valued a bit cheaper than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CRH is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.15 | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
The 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)0.99
PEG (5Y)1.64
EPS Next 2Y16.34%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
CRH has a Yearly Dividend Yield of 1.54%.
Compared to an average industry Dividend Yield of 5.15, 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
The dividend of CRH is nicely growing with an annual growth rate of 25.12%!
CRH has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)25.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CRH pays out 29.19% of its income as dividend. This is a 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%
95.24
-0.65 (-0.68%)
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 Cap67.78B
Analysts83.85
Price Target114.54 (20.26%)
Short Float %1.6%
Short Ratio2.39
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 | 20.22 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.89 | ||
| P/FCF | 29.15 | ||
| P/OCF | 13.44 | ||
| P/B | 3.21 | ||
| P/tB | 8.03 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)4.71
EY4.95%
EPS(NY)6.44
Fwd EY6.76%
FCF(TTM)3.27
FCFY3.43%
OCF(TTM)7.08
OCFY7.44%
SpS50.3
BVpS29.67
TBVpS11.85
PEG (NY)0.99
PEG (5Y)1.64
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 | 3.08 |
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%