CRH PLC (CRH) Stock Fundamental Analysis
NYSE:CRH - New York Stock Exchange, Inc. - IE0001827041 - Common Stock - Currency: USD
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 only an average score on both its financial health and profitability. CRH has a decent growth rate and is not valued too expensively.
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.
CRH had positive earnings in each of the past 5 years.
Each year in the past 5 years CRH had a positive operating cash flow.
1.2 Ratios
CRH has a Return On Assets of 6.31%. This is comparable to the rest of the industry: CRH outperforms 50.00% of its industry peers.
Looking at the Return On Equity, with a value of 15.51%, CRH is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.69%, CRH is in line with its industry, outperforming 58.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of CRH (9.15%) is worse than 66.67% of its industry peers.
In the last couple of years the Profit Margin of CRH has grown nicely.
CRH's Operating Margin of 13.66% is in line compared to the rest of the industry. CRH outperforms 41.67% of its industry peers.
In the last couple of years the Operating Margin of CRH has grown nicely.
With an excellent Gross Margin value of 35.57%, CRH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRH is creating some value.
Compared to 1 year ago, CRH has less shares outstanding
CRH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CRH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.01 indicates that CRH is not in any danger for bankruptcy at the moment.
CRH has a Altman-Z score of 3.01. This is comparable to the rest of the industry: CRH outperforms 41.67% of 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 Debt to FCF ratio (6.74) which is in line with its industry peers.
A Debt/Equity ratio of 0.68 indicates that 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.27
WACC6.86%
2.3 Liquidity
CRH has a Current Ratio of 1.63. This is a normal value and indicates that CRH is financially healthy and should not expect problems in meeting its short term obligations.
CRH has a Current ratio of 1.63. This is in the lower half of the industry: CRH underperforms 66.67% of its industry peers.
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.
The Quick ratio of CRH (1.07) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
CRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.06%, which is quite good.
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.
Looking at the last year, CRH shows a small growth in Revenue. The Revenue has grown by 1.78% in the last year.
The Revenue has been growing slightly by 4.80% on average over the past years.
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.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y21.7%
EPS Next 2Y16.81%
EPS Next 3Y15.57%
EPS Next 5Y11.47%
Revenue Next Year5.19%
Revenue Next 2Y5.14%
Revenue Next 3Y5.62%
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 19.09, the valuation of CRH can be described as rather expensive.
CRH's Price/Earnings ratio is a bit cheaper when compared to the industry. CRH is cheaper than 66.67% of the companies in the same industry.
CRH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of CRH can be described as correct.
Based on the Price/Forward Earnings ratio, CRH is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. CRH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
CRH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRH is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CRH is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.53 | ||
| EV/EBITDA | 11.26 |
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 15.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)1.55
EPS Next 2Y16.81%
EPS Next 3Y15.57%
5. Dividend
5.1 Amount
CRH has a Yearly Dividend Yield of 1.66%.
Compared to an average industry Dividend Yield of 4.24, CRH pays a better dividend. On top of this CRH pays more dividend than 83.33% of the companies listed in the same industry.
CRH's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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
29.19% of the earnings are spent on dividend by CRH. This is a low number and sustainable payout ratio.
CRH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.19%
EPS Next 2Y16.81%
EPS Next 3Y15.57%
89.93
+1.78 (+2.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)
Earnings (Next)
Inst Owners87.11%
Inst Owner Change0.43%
Ins Owners0.15%
Ins Owner Change28.18%
Market Cap64.00B
Analysts82.96
Price Target114.54 (27.37%)
Short Float %1.54%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
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)0.99%
PT rev (3m)-3.18%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-5.68%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 13.85 | ||
| P/S | 1.79 | ||
| P/FCF | 27.53 | ||
| P/OCF | 12.69 | ||
| P/B | 3.03 | ||
| P/tB | 7.59 | ||
| EV/EBITDA | 11.26 |
EPS(TTM)4.71
EY5.24%
EPS(NY)6.49
Fwd EY7.22%
FCF(TTM)3.27
FCFY3.63%
OCF(TTM)7.08
OCFY7.88%
SpS50.3
BVpS29.67
TBVpS11.85
PEG (NY)0.88
PEG (5Y)1.55
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 | 3.01 |
F-Score6
WACC6.86%
ROIC/WACC1.27
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 Y21.7%
EPS Next 2Y16.81%
EPS Next 3Y15.57%
EPS Next 5Y11.47%
Revenue 1Y (TTM)1.78%
Revenue growth 3Y6.79%
Revenue growth 5Y4.8%
Sales Q2Q%3.41%
Revenue Next Year5.19%
Revenue Next 2Y5.14%
Revenue Next 3Y5.62%
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%