CRH plc (CRH) AI Stock Analysis

• Market Cap: $75.88B
• Dividend Yield: 1.17%
• Average Volume (3M): 3.75M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.28
• Revenue Growth: 4.28%
• EPS Growth: 0.39%
• Country: US
• Employees: 79,800
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 1.52
• Shares Outstanding: 668,250,800
• 10 Day Avg. Volume: 2,924,112
• 30 Day Avg. Volume: 3,745,118
• PEG Ratio: -3.94
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 33.33
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 9.46
• 1Y Price Target: $143.33
• Price Target Upside: 21.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 6.01
• Revenue Forecast (FY): $39.81B

• Rating: 70 Outperform
• Price Target: $137.00 ▲(16.38% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by solid underlying financial performance and a notably constructive earnings-call outlook with raised guidance and margin expansion. These positives are tempered by rising leverage and only moderate cash conversion, while technicals are neutral and valuation is not particularly cheap given the P/E and modest dividend yield.

Positive Factors

Revenue and margin expansion

Consistent top-line growth with simultaneous margin expansion indicates durable pricing power and operational leverage across CRH’s vertically integrated materials and building-products operations. This combination supports sustainable profit generation and improves long-term cash flow resilience even through cyclical construction cycles.

Active, value-accretive M&A program

A disciplined M&A cadence focused on bolt‑ons and sector consolidation enhances CRH’s scale, geographic footprint and vertical integration. Strategic purchases such as Eco Material expand product mix and local supply, enabling cost synergies and higher long-term margins when integrated effectively.

Exposure to infrastructure megatrends

Structural demand from large, multi-year infrastructure programs provides predictable, higher-volume end markets. CRH’s broad network of quarries, plants and building solutions gives it the distribution and execution capability to capture sustained demand and stable long-term revenue streams.

Negative Factors

Rising leverage

Materially higher leverage reduces financial flexibility and increases vulnerability to downturns or rising rates. With sizable debt on the balance sheet, CRH faces higher fixed servicing costs and less capacity to fund opportunistic M&A or absorb cyclical revenue declines without pressuring payout or investment plans.

Moderate cash conversion

Subpar earnings-to-free-cash conversion limits the company’s ability to self-fund capex, debt reduction and shareholder returns. Reliance on weaker cash conversion raises sensitivity to working-capital swings and increases the need for external financing during investment cycles or adverse market conditions.

Near-term EPS dilution & sector headwinds

While acquisitions expand strategic capability, the financing and integration of Eco Material create short-term EPS dilution and execution risk. Coupled with persistent U.S. residential weakness, this can constrain near-term profitability and delay the expected accretion from recent deals.

CRH plc Business Overview & Revenue Model

Company Description

CRH plc, together with its subsidiaries, provides building materials solutions in Ireland, the United States, the United Kingdom, rest of Europe, and internationally. It operates through three segments: Americas Materials Solutions, Americas Building Solutions, and International Solutions. The company offers building materials for the construction and maintenance of public infrastructure, and commercial and residential buildings, as well as construction and renovation of public infrastructure, critical networks, commercial and residential buildings, and outdoor living spaces; paving and construction services; and produces and sells aggregates, cement, ready mixed concrete and mortars, and asphalt. It also manufactures, supplies, and delivers value-added solutions for the built environment in communities in North America; and provides building and infrastructure solutions for complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for private and public spaces. In addition, the company produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams and vaults, pipes, and manholes; and concrete and polymer-based products, such as underground vaults, drainage systems, enclosures, and modular precast structures for applications in water, energy, telecommunications, and railroad markets. Further, it provides crushed stone, sand, and gravel; a range of engineered steel and polymer-based anchoring, fixing, and connecting solutions for various new-build construction applications; concrete masonry, hardscape, and related products, including pavers, blocks and curbs, retaining walls and slabs; and fencing and railing systems, composite decking, lawn and garden products and packaged concrete mixes. CRH plc was founded in 1936 and is based in Dublin, Ireland.

How the Company Makes Money

CRH generates revenue through multiple key streams, primarily from the sale of building materials and products. The company's revenue model is built on the production and distribution of aggregates, cement, and various construction products, serving a diverse customer base that includes contractors, builders, and municipalities. Significant partnerships with contractors and government agencies enhance CRH's ability to secure large-scale projects, contributing to steady revenue growth. Additionally, the company's regional operations in North America and Europe allow it to capitalize on local market demands and infrastructure investments, further bolstering its earnings.

CRH plc Financial Statement Overview

Summary

Strong multi-year revenue and profit growth with generally healthy margins and solid ROE, supported by improving 2025 operating and free cash flow. Offsetting factors are rising leverage into 2025, only moderate earnings-to-free-cash-flow conversion, and a noted 2025 margin-data inconsistency that reduces confidence in period margin quality.

Income Statement

Revenue has grown steadily from 2023–2025, with 2025 annual revenue up about 8% and margins generally healthy for the sector (gross margin ~36%, net margin ~10%). Profitability is solid with net income rising alongside sales, although net margin dipped from 2022’s elevated level and the 2025 data shows an inconsistency where EBIT margin is listed as 0% despite strong EBIT dollars, which reduces confidence in margin quality for that period.

Balance Sheet

The company shows solid shareholder returns (mid-teens return on equity across recent years) and a growing asset base. Leverage is meaningful and has trended higher recently: total debt rose materially into 2025 and debt-to-equity increased versus 2022–2023 levels, which adds financial risk if the cycle weakens, even though equity remains sizable.

Cash Flow

Cash generation is positive with operating cash flow and free cash flow improving in 2025, and free cash flow growth rebounding strongly after a weaker 2024. However, cash conversion is only moderate: free cash flow is roughly half of net income in 2024–2025, and operating cash flow covers a relatively modest portion of reported earnings, suggesting working-capital swings and/or higher reinvestment needs can pressure near-term cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.87B	34.35B	31.76B	30.41B	25.76B
Gross Profit	11.51B	12.27B	10.87B	10.05B	8.45B
EBITDA	6.37B	6.88B	5.47B	5.00B	4.50B
Net Income	3.17B	3.34B	2.87B	3.63B	2.26B
Balance Sheet
Total Assets	58.33B	48.88B	43.14B	42.11B	39.40B
Cash, Cash Equivalents and Short-Term Investments	4.10B	3.75B	5.76B	5.51B	5.10B
Total Debt	19.70B	14.78B	11.83B	10.10B	10.72B
Total Liabilities	27.96B	26.81B	23.49B	20.70B	20.95B
Stockholders Equity	20.43B	20.87B	18.95B	20.59B	17.84B
Cash Flow
Free Cash Flow	2.52B	2.37B	2.95B	2.15B	2.37B
Operating Cash Flow	4.83B	4.86B	4.60B	3.56B	3.74B
Investing Cash Flow	-5.19B	-6.12B	-2.21B	-856.39M	-2.27B
Financing Cash Flow	507.26M	-1.15B	-2.16B	-2.32B	-2.91B

CRH plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 117.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 117.72 is below the 20-day moving average (MA) of 122.98, below the 50-day MA of 124.32, and above the 200-day MA of 111.27, indicating a neutral trend. The MACD of -1.73 indicates Positive momentum. The RSI at 34.42 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMC	75 Outperform	$39.17B	36.97	12.99%	0.67%	6.54%	32.48%
MLM	72 Outperform	$39.61B	35.01	10.65%	0.51%	1.99%	-41.08%
CX	71 Outperform	$17.43B	17.15	3.14%	0.74%	-6.34%	210.97%
CRH	70 Outperform	$75.88B	20.61	15.21%	1.17%	4.28%	0.39%
EXP	70 Outperform	$6.72B	16.20	28.77%	0.47%	1.50%	-4.44%
KNF	65 Neutral	$5.01B	32.10	9.71%	―	5.52%	-25.56%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%