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CRH plc (CRH)
NYSE:CRH
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CRH plc
(NYSE:CRH)
Rating:81Outperform
Price Target:
$109.00
▲( 15.85% Upside)
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 Position
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
Operational 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
£63.61B
Dividend Yield1.58%
Average Volume (3M)5.05M
Price to Earnings (P/E)19.9
Beta (1Y)1.25
Revenue Growth2.11%
EPS Growth3.37%
CountryUS
Employees79,800
SectorBasic Materials
Sector Strength64
IndustryConstruction Materials
Share Statistics
EPS (TTM)-0.15
Shares Outstanding676,004,200
10 Day Avg. Volume4,194,592
30 Day Avg. Volume5,052,319
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)2.76
Price to Sales (P/S)0.00
P/FCF Ratio20.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£110.64Price Target Upside17.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
CRH plc Business Overview & Revenue Model
Company DescriptionCRH 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 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 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.88
Very Positive
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.82
Very Positive
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.80
Positive
| 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
Neutral
94.09
Price Trends
91.81
Positive
94.96
Negative
93.45
Positive
Market Momentum
1.25
Positive
49.71
Neutral
15.82
Positive
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 94.09 is below the 20-day moving average (MA) of 95.65, above the 50-day MA of 91.81, and above the 200-day MA of 93.45, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 15.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRH.
CRH plc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | £63.61B | 19.91 | 15.72% | 1.58% | 2.11% | 3.37% | |
78 Outperform | $35.43B | 38.02 | 12.10% | 0.70% | -2.24% | 3.00% | |
76 Outperform | $7.01B | 15.56 | 33.52% | 0.47% | 0.64% | -1.15% | |
75 Outperform | $33.86B | 32.30 | 11.88% | 0.55% | -0.54% | -48.61% | |
73 Outperform | $10.88B | 7.39 | 6.58% | 1.16% | -8.41% | 570.14% | |
68 Neutral | $10.19B | 24.00 | 21.05% | ― | 1.26% | -17.38% | |
50 Neutral | $1.99B | -1.06 | -21.34% | 3.71% | 2.03% | -30.65% |
* Basic Materials Sector Average
Performance Comparison
CRH
CRH plc
94.09
16.04
20.55%
CX
Cemex SAB
7.13
-0.35
-4.68%
EXP
Eagle Materials
214.37
-16.91
-7.31%
JHX
James Hardie
23.45
-8.03
-25.51%
MLM
Martin Marietta Materials
561.72
-5.34
-0.94%
VMC
Vulcan Materials
268.19
16.14
6.40%
CRH plc Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -3.86%|
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.