CRH plc (CRH) AI Stock Analysis

• Market Cap: £66.77B
• Dividend Yield: 1.5%
• Average Volume (3M): 8.48M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.25
• Revenue Growth: 1.78%
• EPS Growth: 15.53%
• Country: US
• Employees: 79,800
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Construction Materials
• EPS (TTM): 5.04
• Shares Outstanding: 677,801,330
• 10 Day Avg. Volume: 5,307,589
• 30 Day Avg. Volume: 8,479,812
• PEG Ratio: 1.26
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.01
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £112.20
• Price Target Upside: 13.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

CRH plc demonstrates strong financial performance with consistent revenue growth and effective cost management. The earnings call indicates positive guidance, supported by strategic investments and market trends. However, technical analysis suggests potential resistance, and there is room for improvement in free cash flow conversion. Overall, CRH is well-positioned for future growth with a solid valuation profile.

Positive Factors

Financial Performance

CRH delivered another strong, consensus and sector beating set of results.

Growth Potential

The group should benefit from recent acquisitions and its ongoing cost management efforts.

Pricing Power

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

Sector Dependency

The valuation now looks much less attractive and too dependent on its US peers.

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 Issues

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

CRH plc Business Overview & Revenue Model

Company Description

CRH 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 Money

CRH 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 Financial Statement Overview

Summary

CRH plc has demonstrated strong financial health with consistent revenue growth and improved profit margins. The income statement reveals a solid increase in revenue and profitability, supported by effective cost management. The balance sheet is stable with a balanced debt-to-equity ratio and a strong equity position. The cash flow statement shows efficient cash conversion, although there is room for improvement in free cash flow. Overall, CRH is well-positioned for future growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
35.57B	34.95B	32.72B	30.98B	27.59B
	Gross Profit
12.70B	11.96B	10.88B	10.49B	9.16B
	EBIT
4.92B	4.19B	3.89B	3.58B	2.26B
	EBITDA
7.12B	6.02B	5.38B	4.97B	3.62B
	Net Income Common Stockholders
3.46B	3.18B	2.68B	2.63B	1.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.72B	6.33B	5.94B	5.78B	7.72B
	Total Assets
50.61B	47.47B	45.19B	44.67B	44.94B
	Total Debt
15.31B	13.02B	10.96B	12.16B	13.85B
	Net Debt
11.59B	6.69B	5.02B	6.38B	6.13B
	Total Liabilities
27.76B	25.85B	22.85B	23.76B	24.60B
	Stockholders Equity
21.61B	20.85B	21.69B	20.23B	19.66B
Cash Flow		Free Cash Flow
2.41B	3.20B	2.28B	2.42B	2.94B
	Operating Cash Flow
4.99B	5.02B	3.80B	3.98B	3.94B
	Investing Cash Flow
-6.29B	-2.39B	-917.00M	-2.51B	-1.06B
	Financing Cash Flow
-1.19B	-2.38B	-2.50B	-3.11B	287.00M

CRH plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRH, the sentiment is Positive. The current price of 98.51 is above the 20-day moving average (MA) of 87.89, above the 50-day MA of 92.86, and above the 200-day MA of 92.60, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 95.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRH.

CRH plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	79 Outperform	£66.77B	19.64	16.07%	1.50%	1.78%	15.53%
VMC	78 Outperform	$35.28B	38.98	12.10%	0.70%	-2.24%	3.00%
EXP	76 Outperform	$7.79B	16.72	33.51%	0.43%	0.64%	-1.15%
MLM	75 Outperform	$32.30B	16.54	11.88%	0.58%	-0.54%	-48.61%
CX	73 Outperform	$7.83B	8.36	6.58%	1.34%	-8.41%	570.14%
JHX	68 Neutral	$10.45B	24.05	21.77%	―	1.26%	-17.38%
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%