CRH plc (CRH) AI Stock Analysis

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CRH plc

(NYSE:CRH)

Rating:81Outperform

Price Target:

$123.00

▲(8.62% Upside)

CRH's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's robust operational efficiency and strategic acquisitions support a positive outlook. Technical indicators show a bullish trend, although the valuation suggests the stock may be slightly overvalued.

Positive Factors

Financial Performance

Analyst reiterates a Buy rating on CRH reflecting positive earnings momentum, strong execution, and large capital allocation optionality.

Market Opportunities

Potential inclusion in the S&P 500 index could generate significant trading activity.

Valuation

CRH's continued discount to larger-cap U.S. materials peers presents a longer-term opportunity to narrow the gap as the portfolio evolves.

Negative Factors

Growth Concerns

Current demand drivers may limit core growth and broader re-rating potential.

Project Pipeline

The cumulative value of projects bid by CRH subsidiaries declined in the second quarter compared to last year.

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.

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

Market Cap

£76.86B

Dividend Yield1.29%

Average Volume (3M)4.49M

Price to Earnings (P/E)23.9

Beta (1Y)1.26

Revenue Growth3.85%

EPS Growth-0.93%

CountryUS

Employees79,800

SectorBasic Materials

Sector Strength66

IndustryConstruction Materials

Share Statistics

EPS (TTM)1.94

Shares Outstanding672,659,300

10 Day Avg. Volume4,001,246

30 Day Avg. Volume4,493,055

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

£122.92

Price Target Upside8.55% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering14

CRH plc Business Overview & Revenue Model

Company DescriptionCRH plc (CRH) is a leading global diversified building materials group, headquartered in Dublin, Ireland. The company operates in three primary segments: Americas Materials, Europe Materials, and Building Products. CRH produces and supplies a wide range of construction and building materials, including cement, aggregates, asphalt, ready-mixed concrete, and precast products. Its products are used in various construction projects, ranging from infrastructure and commercial buildings to residential developments.

How the Company Makes MoneyCRH 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong quarter with record performances and strategic acquisitions contributing to growth. Despite challenges such as adverse weather and subdued new build residential activity, CRH's operational efficiencies, capital investments, and acquisitions have positioned the company for continued success, leading to an optimistic outlook and raised guidance for the year.

Q2-2025 Updates

Positive Updates

Record Second Quarter Performance

CRH reported a record second quarter performance with total revenues of $10.2 billion, representing a 6% increase over the prior year. Adjusted EBITDA reached $2.5 billion, a 9% increase over the prior year, with a 70 basis point margin expansion.

Capital Allocation and Acquisitions

CRH invested approximately $1.7 billion across 19 bolt-on acquisitions and growth CapEx investments year-to-date. The company announced an agreement to acquire Eco Material Technologies for $2.1 billion to accelerate its cementitious growth strategy.

Guidance Raise for 2025

CRH raised its financial guidance for 2025, expecting full year adjusted EBITDA to be between $7.5 billion and $7.7 billion, representing 10% growth at the midpoint.

Strong Performance Across Segments

Americas Materials Solutions and Americas Building Solutions delivered profit growth and margin expansion, with strong contributions from acquisitions and operational efficiencies.

International Solutions Growth

International Solutions saw a 13% increase in revenue and a 23% increase in adjusted EBITDA with a 170 basis point margin expansion, aided by the acquisition of Adbri.

Negative Updates

Adverse Weather Impact

Adverse weather conditions impacted activity levels, causing a stop-start nature to the season, though the teams adapted quickly to optimize operations.

Challenges in New Build Residential Activity

New build activity in the U.S. residential sector remains subdued, influenced by high interest rates affecting affordability.

Company Guidance

During the CRH Q2 2025 Results Presentation, the company provided updated guidance based on strong performance metrics. CRH reported a record second quarter with total revenues of $10.2 billion, a 6% increase from the previous year, and adjusted EBITDA of $2.5 billion, reflecting a 9% rise. The company also achieved a 70 basis point margin expansion and a 3% growth in diluted earnings per share. CRH raised its full-year adjusted EBITDA forecast to between $7.5 billion and $7.7 billion, marking a 10% growth at the midpoint. This upward revision is supported by continued positive momentum in infrastructure and nonresidential markets, as well as robust acquisition activities, including the strategic acquisition of Eco Material Technologies for $2.1 billion. CRH has also committed approximately $1.7 billion to 19 bolt-on acquisitions and growth CapEx investments so far this year.

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 shows robust operational efficiency with strong EBIT and EBITDA margins. However, 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.

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

Positive

Last Price113.24

Price Trends

50DMA

99.08

Positive

100DMA

95.07

Positive

200DMA

96.12

Positive

Market Momentum

MACD

4.35

Negative

RSI

67.29

Neutral

STOCH

80.23

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 113.24 is above the 20-day moving average (MA) of 107.48, above the 50-day MA of 99.08, and above the 200-day MA of 96.12, indicating a bullish trend. The MACD of 4.35 indicates Negative momentum. The RSI at 67.29 is Neutral, neither overbought nor oversold. The STOCH value of 80.23 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRH	81 Outperform	£76.86B	23.88	15.22%	1.29%	3.85%	-0.93%
MLM	78 Outperform	$37.21B	34.19	12.10%	0.51%	1.02%	-45.31%
VMC	76 Outperform	$38.47B	40.58	11.89%	0.66%	0.19%	4.33%
CX	75 Outperform	$13.55B	8.74	7.12%	0.93%	-9.62%	795.20%
EXP	74 Outperform	$7.70B	17.47	31.87%	0.43%	0.88%	-4.17%
KNF	63 Neutral	$5.11B	30.77	11.11%	―	2.64%	-22.49%
Sector *	61 Neutral	$10.31B	6.29	0.76%	2.95%	3.36%	-36.41%

* Basic Materials Sector Average

Performance Comparison

CRH

CRH plc

113.19

26.16

30.07%

Cemex SAB

9.04

3.07

51.42%

EXP

Eagle Materials

230.49

-23.22

-9.15%

MLM

Martin Marietta Materials

612.29

91.37

17.54%

VMC

Vulcan Materials

291.16

51.66

21.57%

KNF

Knife River Corporation

80.89

3.27

4.21%

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.Date of analysis: Aug 08, 2025