CRH plc (CRH) AI Stock Analysis

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CRH plc

(LSE:CRH)

Rating:77Outperform

Price Target:

$103.00

▲(14.39%Upside)

CRH plc's overall stock score reflects strong financial performance and a positive outlook from the earnings call. However, the technical indicators suggest caution due to bearish momentum, and the valuation is moderate, affecting the overall score.

Positive Factors

Dividends

Guidance is affirmed and there is a 6% increase in the quarterly dividend.

Earnings

Another quarter of year-over-year revenue, EBITDA, and margin improvement is noted.

Market Positioning

CRH enjoys strong pricing power in both the US and European markets, which helps to defend margins in a less certain demand backdrop.

Negative Factors

Division Performance

Building Solutions is a weaker division with negative organic revenue and EBITDA performance, affected by weather and residential market issues.

Stock Valuation

CRH's stock and some US materials peers are perceived as looking stretched, reminiscent of a past scenario where a stock subsequently fell significantly.

Transparency

The highly managed communication is starting to impact transparency, which may become an issue once fundamentals turn.

CRH plc (CRH) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$60.87B

Dividend Yield1.63%

Average Volume (3M)4.37M

Price to Earnings (P/E)19.1

Beta (1Y)1.24

Revenue Growth2.11%

EPS Growth3.37%

CountryUS

Employees79,800

SectorBasic Materials

Sector Strength67

IndustryConstruction Materials

Share Statistics

EPS (TTM)-0.15

Shares Outstanding676,004,200

10 Day Avg. Volume3,415,635

30 Day Avg. Volume4,366,515

Financial Highlights & Ratios

PEG Ratio1.37

Price to Book (P/B)1.71

Price to Sales (P/S)0.00

P/FCF Ratio13.16

Enterprise Value/Market Cap0.58

Enterprise Value/Revenue0.36

Enterprise Value/Gross Profit4.10

Enterprise Value/Ebitda2.06

Forecast

1Y Price Target

$110.83

Price Target Upside23.09% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

CRH plc Business Overview & Revenue Model

Company DescriptionCRH plc (CRH) is a leading global building materials company, providing a wide range of products and solutions across the construction sector. Based in Dublin, Ireland, CRH operates in three major segments: Americas Materials, Europe Materials, and Building Products. The company offers an extensive portfolio that includes aggregates, cement, asphalt, ready-mixed concrete, and a variety of building products used in residential, commercial, and infrastructure projects worldwide. CRH is known for its commitment to sustainable building practices and innovation within the industry.

How the Company Makes MoneyCRH makes money primarily through the production and sale of building materials and products. The company's revenue model is diversified across its three main segments. In the Americas Materials segment, revenue is generated from the extraction, processing, and sale of aggregates, asphalt, and readymix concrete, catering to road construction and infrastructure projects. The Europe Materials segment similarly focuses on the production and distribution of cement and other building materials across European markets. The Building Products segment generates income through the manufacture and sale of architectural products, precast concrete, and other building materials, serving residential and commercial construction needs. Key revenue streams include direct sales to construction companies, partnerships with governments for infrastructure projects, and a strong distribution network that ensures product availability across diverse geographies. Strategic acquisitions and sustainability initiatives further enhance CRH's market position and contribute to its earnings.

CRH plc Earnings Call Summary

Earnings Call Date:May 05, 2025

(Q1-2025)

% Change Since: -8.00%|

Next Earnings Date:Aug 21, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong start to the year with notable revenue and EBITDA growth, robust capital allocation activities, and positive market demand. However, challenges such as weather impacts, seasonal losses, and increased net debt were also highlighted. Despite these challenges, the overall outlook remains positive with reaffirmed guidance and continued shareholder returns.

Q1-2025 Updates

Positive Updates

Strong Revenue and EBITDA Growth

Total revenues of $6.8 billion were 3% ahead, with adjusted EBITDA of $495 million, 11% ahead of the prior year period, and a further 50 basis points of margin expansion.

Positive Capital Allocation and Acquisitions

Completed eight value accretive bolt-on acquisitions for approximately $600 million, with a focus on essential materials, road solutions, critical infrastructure, and outdoor living.

Resilient Demand in Key Markets

Underlying demand across key end markets remains positive, supported by infrastructure funding and reindustrialization activity, particularly in manufacturing and data centers.

International Solutions Performance

Total revenue growth of 7% translated into a 22% increase in adjusted EBITDA and a further 70 basis points of margin improvement in International Solutions.

Continued Shareholder Returns

Returned $500 million in share buybacks so far this year, with a further quarterly tranche of $300 million and a 6% increase in quarterly dividend.

Negative Updates

Weather Impact on Volumes

Adverse weather conditions impacted activity levels, particularly in Americas Material Solutions, resulting in essential materials revenues being 3% behind the prior year.

Seasonal Loss in Diluted Earnings Per Share

Reported a small loss in diluted earnings per share, reflecting the seasonal nature of the business and is not unusual for the first quarter.

Subdued Residential Activity

Challenging weather conditions and subdued residential activity affected revenues, with Outdoor Living Solutions Q1 revenues 3% below the prior year.

Net Debt Increase

Net debt position increased to $12.7 billion at the end of the first quarter, with a net debt to adjusted EBITDA ratio of approximately 1.8 times.

Company Guidance

During the CRH First Quarter 2025 Results Presentation, CEO Jim Mintern and his team provided guidance for the year, reaffirming their financial expectations despite macroeconomic uncertainties. They anticipate full-year adjusted EBITDA to range between $7.3 billion and $7.7 billion, net income between $3.7 billion and $4.1 billion, and diluted earnings per share from $5.34 to $5.80. The company highlighted a positive start to the year with a 3% increase in total revenues to $6.8 billion and an 11% rise in adjusted EBITDA to $495 million. CRH's capital allocation strategy included eight bolt-on acquisitions totaling approximately $600 million and a continuation of its share buyback program. They also reported a net debt position of $12.7 billion, with a net debt to adjusted EBITDA ratio of 1.8 times. The company is focused on maintaining pricing momentum and is monitoring the impact of macroeconomic factors closely.

CRH plc Financial Statement Overview

Summary

CRH plc demonstrates strong financial health, with consistent revenue and profit growth, effective cost management, and a solid balance sheet, though there is room for improvement in free cash flow conversion.

Income Statement

Very Positive

CRH plc has shown impressive growth with a consistent increase in revenue over the past years. The revenue growth rate from 2023 to 2024 was approximately 1.78%, indicating a stable upward trajectory. The gross profit margin improved, reaching 35.7% in 2024, reflecting effective cost management. The net profit margin also increased to 9.81%, showcasing enhanced profitability. EBIT and EBITDA margins were strong at 13.84%, indicating robust operational efficiency.

Balance Sheet

Very Positive

CRH plc maintains a solid balance sheet with a debt-to-equity ratio of 0.71, suggesting a balanced approach to leveraging. The return on equity (ROE) is a solid 16.16%, indicating effective use of shareholders' equity to generate profits. The equity ratio stands at 42.7%, highlighting a strong equity position and financial stability. However, a slight increase in total debt warrants monitoring.

Cash Flow

Positive

The cash flow statement reveals a modest decrease in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.43, indicating efficient cash conversion from net income. The free cash flow to net income ratio of 0.69 suggests room for improvement in converting earnings into free cash flow. Despite these challenges, the company has maintained healthy operating cash flows.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
25.28B	35.57B	34.95B	32.72B	30.98B	27.59B
	Gross Profit
8.67B	12.70B	11.96B	10.88B	10.49B	9.16B
	EBIT
2.95B	4.92B	4.19B	3.89B	3.58B	2.26B
	EBITDA
4.48B	7.12B	6.02B	5.38B	4.97B	3.62B
	Net Income Common Stockholders
1.94B	3.49B	3.18B	2.68B	2.63B	1.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.70B	3.88B	6.33B	5.94B	5.78B	7.72B
	Total Assets
51.92B	50.61B	47.47B	45.19B	44.67B	44.94B
	Total Debt
16.99B	15.31B	13.02B	10.96B	12.16B	13.85B
	Net Debt
13.64B	11.59B	6.69B	5.02B	6.38B	6.13B
	Total Liabilities
29.56B	27.76B	25.85B	22.85B	23.76B	24.60B
	Stockholders Equity
21.12B	21.61B	20.85B	21.69B	20.23B	19.66B
Cash Flow		Free Cash Flow
1.34B	2.41B	3.20B	2.28B	2.42B	2.94B
	Operating Cash Flow
3.56B	4.99B	5.02B	3.80B	3.98B	3.94B
	Investing Cash Flow
-3.37B	-6.29B	-2.39B	-917.00M	-2.51B	-1.06B
	Financing Cash Flow
760.00M	-1.19B	-2.38B	-2.50B	-3.11B	287.00M

CRH plc Technical Analysis

Technical Analysis Sentiment

Negative

Last Price90.04

Price Trends

50DMA

91.27

Negative

100DMA

94.81

Negative

200DMA

94.05

Negative

Market Momentum

MACD

-0.55

Positive

RSI

41.66

Neutral

STOCH

43.53

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRH, the sentiment is Negative. The current price of 90.04 is below the 20-day moving average (MA) of 93.26, below the 50-day MA of 91.27, and below the 200-day MA of 94.05, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 41.66 is Neutral, neither overbought nor oversold. The STOCH value of 43.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRH.

CRH plc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	78 Outperform	$34.45B	36.97	12.10%	0.75%	-2.24%	3.00%
CRH	77 Outperform	$60.87B	19.05	15.72%	1.63%	2.11%	3.37%
EXP	76 Outperform	$6.41B	14.23	33.52%	0.51%	0.05%	0.96%
MLM	75 Outperform	$32.70B	31.19	11.88%	0.58%	-0.54%	-48.61%
CX	72 Outperform	$10.27B	7.02	6.58%	1.22%	-8.41%	570.14%
JHX	72 Outperform	$11.23B	26.89	21.05%	―	-1.59%	-15.58%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%

* Basic Materials Sector Average

Performance Comparison

CRH

CRH plc

90.04

12.51

16.14%

Cemex SAB

6.77

0.34

5.29%

EXP

Eagle Materials

195.95

-33.37

-14.55%

JHX

James Hardie

26.27

-5.73

-17.91%

MLM

Martin Marietta Materials

542.47

-28.07

-4.92%

VMC

Vulcan Materials

260.77

6.37

2.50%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.