CRH plc (CRH) AI Stock Analysis

• Market Cap: £74.83B
• Dividend Yield: 1.31%
• Average Volume (3M): 4.24M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.26
• Revenue Growth: 3.85%
• EPS Growth: -0.93%
• Country: US
• Employees: 79,800
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 1.94
• Shares Outstanding: 672,659,300
• 10 Day Avg. Volume: 3,268,324
• 30 Day Avg. Volume: 4,239,797
• PEG Ratio: 0.81
• Price to Book (P/B): 2.93
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 26.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £124.54
• Price Target Upside: 11.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 82 Outperform
• Price Target: $129.00 ▲(15.96% Upside)

CRH plc receives a strong overall stock score driven by its robust financial performance and positive earnings call. The company's strategic acquisitions and raised guidance contribute significantly to its outlook. While the valuation is on the higher side, the technical indicators support a positive trend.

Positive Factors

Negative Factors

CRH plc Business Overview & Revenue Model

Company Description

CRH plc, through its subsidiaries, manufactures and distributes building materials. It operates in three segments: Americas Materials, Europe Materials, and Building Products. The company manufactures and supplies cement, lime, aggregates, precast, ready mixed concrete, and asphalt products; concrete masonry and hardscape products comprising pavers, blocks and kerbs, retaining walls, and related patio products; and glass and glazing products, including architectural glass, custom-engineered curtain and window walls, architectural windows, storefront systems, doors, skylights, and architectural hardware. It also offers precast concrete and polymer-based products, such as underground vaults, drainage pipes and structures, utility enclosures, and modular precast structures to the water, energy, communication, transportation, and building structures markets; and construction accessories, such as anchoring, fixing, and connection solutions, as well as lifting systems, formwork accessories, and other accessories used in construction applications. In addition, the company offers network access products, which include composite access chambers, covers, passive safety systems, retention sockets, sealants, and meter boxes; and paving and construction services. Further, it provides building and civil engineering contracting, contract surfacing, operates logistics and owned railway infrastructure; sells and distributes cement; and supplies access chambers and ducting products. It serves governments, contractors, homebuilders, homeowners, and sub-contractors. The company operates primarily in the Republic of Ireland, the United Kingdom, the rest of Europe, the United States, and internationally. CRH plc was founded in 1936 and is headquartered in Dublin, Ireland.

How the Company Makes Money

CRH makes money primarily through the production and sale of construction and building materials. The company's revenue streams are diversified across its three main segments. In the Americas Materials and Europe Materials segments, CRH generates income by extracting and processing raw materials like aggregates and producing value-added products such as asphalt and ready-mixed concrete. The Building Products segment contributes to revenue through the manufacture and distribution of precast, architectural, and infrastructure products. Additionally, CRH benefits from strategic acquisitions and partnerships that enhance its market presence and product offerings, while its extensive distribution network ensures efficient delivery to customers globally. The company's earnings are further supported by its focus on operational efficiency and innovation in sustainable building solutions.

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. The company maintains a robust financial position, though there is room for improvement in free cash flow conversion.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.52B	34.35B	31.76B	30.41B	25.76B	22.52B
Gross Profit	8.19B	12.27B	10.87B	10.05B	8.45B	7.41B
EBITDA	4.19B	6.88B	5.47B	5.00B	4.50B	3.21B
Net Income	1.70B	3.34B	2.87B	3.63B	2.26B	915.86M
Balance Sheet
Total Assets	53.98B	50.61B	47.47B	45.19B	44.67B	44.94B
Cash, Cash Equivalents and Short-Term Investments	2.88B	3.88B	6.33B	5.94B	5.78B	7.72B
Total Debt	17.16B	15.31B	13.02B	10.96B	12.16B	13.85B
Total Liabilities	30.35B	27.76B	25.85B	22.85B	23.76B	24.60B
Stockholders Equity	22.34B	21.61B	20.85B	21.69B	20.23B	19.66B
Cash Flow
Free Cash Flow	1.11B	2.37B	2.95B	2.15B	2.37B	2.43B
Operating Cash Flow	3.17B	4.86B	4.60B	3.56B	3.74B	3.24B
Investing Cash Flow	-3.38B	-6.12B	-2.21B	-885.59M	-2.27B	-893.82M
Financing Cash Flow	56.42M	-1.15B	-2.16B	-2.32B	-2.91B	234.27M

CRH plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 111.25
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 111.25 is below the 20-day moving average (MA) of 112.32, above the 50-day MA of 104.99, and above the 200-day MA of 97.04, indicating a neutral trend. The MACD of 1.86 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 54.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRH.

CRH plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	82 Outperform	£74.83B	23.52	15.22%	1.31%	3.85%	-0.93%
VMC	76 Outperform	38.61B	40.81	11.31%	0.66%	0.19%	4.33%
EXP	76 Outperform	7.46B	17.24	30.36%	0.43%	0.88%	-4.17%
MLM	76 Outperform	36.77B	33.78	11.76%	0.52%	1.02%	-45.31%
CX	73 Outperform	14.29B	9.30	7.71%	0.91%	-9.62%	795.20%
KNF	63 Neutral	4.25B	27.91	10.49%	―	2.64%	-22.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%