CRH plc (CRH) AI Stock Analysis

• Market Cap: £54.81B
• Dividend Yield: 1.76%
• Average Volume (3M): 10.17M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.24
• Revenue Growth: 1.78%
• EPS Growth: 15.53%
• Country: US
• Employees: 79,800
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Construction Materials
• EPS (TTM): 5.04
• Shares Outstanding: 677,801,330
• 10 Day Avg. Volume: 9,840,040
• 30 Day Avg. Volume: 10,170,427
• PEG Ratio: 1.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.79
• Price to Cash Flow (P/CF): 7.50
• P/FCF Ratio: 10.60
• 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: $115.54
• Price Target Upside: 42.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

CRH plc demonstrates strong financial performance with robust revenue growth and profitability, effective cost management, and a stable balance sheet. The positive earnings call adds to the company's outlook with optimistic guidance and strategic efforts. However, technical analysis indicates weak short-term momentum, which may pose risks. Valuation metrics suggest a fair price with a reasonable dividend yield. Overall, CRH is well-positioned for long-term growth, though investors should monitor technical signals closely.

Positive Factors

Growth Potential

Guidance clarified and outlook confidence reiterated, highlighting the potential for growth supported by the IIJA funds.

Market Index Inclusion

There is potential for the company to enter the S&P 500 index.

Negative Factors

Transparency Concerns

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

Valuation Concerns

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 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 plc generates revenue through the production and sale of building materials and products. The company's key revenue streams include the sale of materials such as cement, aggregates, and asphalt, which are essential for construction projects. Additionally, CRH earns income from its Building Products segment, which offers value-added products like precast concrete, architectural glass, and construction accessories. The company's diverse geographic presence allows it to capture growth in various markets, balancing its portfolio between mature markets with stable demand and emerging markets with higher growth potential. Strategic acquisitions and partnerships also play a significant role in CRH's revenue model, enabling the company to expand its product offerings and market reach.

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: Negative
• Last Price: 80.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 80.87 is below the 20-day moving average (MA) of 93.38, below the 50-day MA of 98.08, and below the 200-day MA of 91.33, indicating a bearish trend. The MACD of -2.47 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 16.98 is Positive, 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
CRH	75 Outperform	£54.81B	16.12	16.07%	1.76%	1.78%	15.53%
EXP	72 Outperform	$7.23B	15.53	33.51%	0.46%	0.64%	-1.15%
JHX	72 Outperform	$9.00B	21.14	21.77%	―	1.26%	-17.38%
VMC	72 Outperform	$30.48B	33.68	11.79%	0.81%	-4.68%	-1.73%
CX	66 Neutral	$7.80B	8.30	8.39%	1.61%	-5.07%	417.07%
MLM	63 Neutral	$28.70B	14.53	22.83%	0.66%	-3.56%	70.93%
Sector *	47 Neutral	$2.36B	-2.99	-21.59%	3.58%	4.21%	-28.30%