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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
CRH had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of CRH (5.86%) is comparable to the rest of the industry.
CRH's Return On Equity of 14.72% is fine compared to the rest of the industry. CRH outperforms 69.23% of its industry peers.
CRH has a better Return On Invested Capital (8.44%) than 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CRH is in line with the industry average of 9.37%.

		Industry Rank	Sector Rank
ROA	5.86%
ROE	14.72%
ROIC	8.44%

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

With a Profit Margin value of 9.30%, CRH is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of CRH has grown nicely.
Looking at the Operating Margin, with a value of 13.98%, CRH is doing worse than 69.23% of the companies in the same industry.
In the last couple of years the Operating Margin of CRH has grown nicely.
With an excellent Gross Margin value of 36.13%, CRH belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Gross Margin of CRH has grown nicely.

		Industry Rank	Sector Rank
OM	13.98%
PM (TTM)	9.3%
GM	36.13%

OM growth 3Y6.97%

OM growth 5Y6.8%

PM growth 3Y2.92%

PM growth 5Y9.98%

GM growth 3Y2%

GM growth 5Y1.6%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
The debt/assets ratio for CRH is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.11 indicates that CRH is not in any danger for bankruptcy at the moment.
CRH has a Altman-Z score of 3.11. This is in the better half of the industry: CRH outperforms 61.54% of its industry peers.
The Debt to FCF ratio of CRH is 7.37, which is on the high side as it means it would take CRH, 7.37 years of fcf income to pay off all of its debts.
CRH has a Debt to FCF ratio (7.37) which is in line with its industry peers.
CRH has a Debt/Equity ratio of 0.65. This is a neutral value indicating CRH is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, CRH is doing worse than 69.23% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.65
Debt/FCF	7.37
Altman-Z	3.11

ROIC/WACC1.16

WACC7.26%

2.3 Liquidity

CRH has a Current Ratio of 1.45. 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 Current ratio of 1.45 is on the low side compared to the rest of the industry. CRH is outperformed by 61.54% of its industry peers.
CRH has a Quick Ratio of 1.02. 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 1.02 is on the low side compared to the rest of the industry. CRH is outperformed by 61.54% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.45
Quick Ratio	1.02

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CRH have decreased strongly by -40.00% in the last year.
The Earnings Per Share has been growing by 12.30% on average over the past years. This is quite good.
CRH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -40.15%.
The Revenue has been growing slightly by 4.80% on average over the past years.

EPS 1Y (TTM)-40%

EPS 3Y14.85%

EPS 5Y12.3%

EPS Q2Q%13.33%

Revenue 1Y (TTM)-40.15%

Revenue growth 3Y6.79%

Revenue growth 5Y4.8%

Sales Q2Q%5.27%

3.2 Future

The Earnings Per Share is expected to grow by 11.94% 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 6.25% yearly.

EPS Next Y18.16%

EPS Next 2Y13.77%

EPS Next 3Y12.85%

EPS Next 5Y11.94%

Revenue Next Year4.51%

Revenue Next 2Y5.34%

Revenue Next 3Y5.58%

Revenue Next 5Y6.25%

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 accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.10, CRH is valued on the expensive side.
CRH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.32. CRH is around the same levels.
The Price/Forward Earnings ratio is 19.87, which indicates a rather expensive current valuation of CRH.
CRH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRH is cheaper than 61.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRH to the average of the S&P500 Index (25.57), we can say CRH is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	24.1
Fwd PE	19.87

4.2 Price Multiples

CRH's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CRH is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	33.44
EV/EBITDA	14.02

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CRH has a very decent profitability rating, which may justify a higher PE ratio.
CRH's earnings are expected to grow with 12.85% in the coming years. This may justify a more expensive valuation.

PEG (NY)1.33

PEG (5Y)1.96

EPS Next 2Y13.77%

EPS Next 3Y12.85%

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5. Dividend

5.1 Amount

CRH has a Yearly Dividend Yield of 1.20%.
Compared to an average industry Dividend Yield of 2.09, 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 1.83.

		Industry Rank	Sector Rank
Dividend Yield	1.2%

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

28.74% 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.

DP28.74%

EPS Next 2Y13.77%

EPS Next 3Y12.85%

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CRH PLC / CRH FAQ

What is the ChartMill fundamental rating of CRH PLC (CRH) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CRH.

What is the valuation status of CRH PLC (CRH) stock?

ChartMill assigns a valuation rating of 5 / 10 to CRH PLC (CRH). This can be considered as Fairly Valued.

Can you provide the profitability details for CRH PLC?

CRH PLC (CRH) has a profitability rating of 6 / 10.

What is the financial health of CRH PLC (CRH) stock?

The financial health rating of CRH PLC (CRH) is 4 / 10.

Can you provide the dividend sustainability for CRH stock?

The dividend rating of CRH PLC (CRH) is 5 / 10 and the dividend payout ratio is 28.74%.