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CRN

Cairn HomesLSE:CRN Stock Report

Market Cap

UK£741.7m

7D

2.3%

1Y

41.4%

Updated

23 Sep, 2021

Data

Company Financials +
CRN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance2/6
Financial Health5/6
Dividends3/6

CRN Overview

Cairn Homes plc operates as a homebuilder in Ireland.

Cairn Homes Competitors

Derwent London

LSE:DLN

UK£4.1b

Shaftesbury

LSE:SHB

UK£2.4b

LondonMetric Property

LSE:LMP

UK£2.2b

Great Portland Estates

LSE:GPOR

UK£2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Cairn Homes
Historical stock prices
Current Share PriceUK£0.99
52 Week HighUK£0.69
52 Week LowUK£1.01
Beta1.27
1 Month Change1.96%
3 Month Change12.26%
1 Year Change41.45%
3 Year Change-28.36%
5 Year Change3.88%
Change since IPO29.31%

Recent News & Updates

Shareholder Returns

CRNGB Consumer DurablesGB Market
7D2.3%-0.7%0.4%
1Y41.4%44.6%24.5%

Return vs Industry: CRN underperformed the UK Consumer Durables industry which returned 48.5% over the past year.

Return vs Market: CRN exceeded the UK Market which returned 23.1% over the past year.

Price Volatility

Is CRN's price volatile compared to industry and market?
CRN volatility
CRN Beta1.27
Industry Beta1.54
Market Beta1

Stable Share Price: CRN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CRN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014212Michael Stanleyhttps://www.cairnhomes.com

Cairn Homes plc operates as a homebuilder in Ireland. The company develops and sells residential properties. It is also involved in the rental of properties.

Cairn Homes Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
CRN income statement (TTM)
Revenue€311.51m
Cost of Revenue€257.65m
Gross Profit€53.87m
Expenses€35.95m
Earnings€17.92m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.024
Gross Margin17.29%
Net Profit Margin5.75%
Debt/Equity Ratio24.1%

How did CRN perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

111%

Payout Ratio

Valuation

Is Cairn Homes undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRN (£0.99) is trading below our estimate of fair value (£9.04)

Significantly Below Fair Value: CRN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CRN is poor value based on its PE Ratio (48.4x) compared to the UK Consumer Durables industry average (15x).

PE vs Market: CRN is poor value based on its PE Ratio (48.4x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: CRN is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CRN is good value based on its PB Ratio (1.1x) compared to the GB Consumer Durables industry average (1.6x).


Future Growth

How is Cairn Homes forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

50.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRN's forecast earnings growth (50.7% per year) is above the savings rate (0.9%).

Earnings vs Market: CRN's earnings (50.7% per year) are forecast to grow faster than the UK market (13.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CRN's revenue (24% per year) is forecast to grow faster than the UK market (5.4% per year).

High Growth Revenue: CRN's revenue (24% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRN's Return on Equity is forecast to be low in 3 years time (9.5%).


Past Performance

How has Cairn Homes performed over the past 5 years?

35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRN has high quality earnings.

Growing Profit Margin: CRN's current net profit margins (5.8%) are lower than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: CRN's earnings have grown significantly by 35.2% per year over the past 5 years.

Accelerating Growth: CRN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRN had negative earnings growth (-46.9%) over the past year, making it difficult to compare to the Consumer Durables industry average (17.3%).


Return on Equity

High ROE: CRN's Return on Equity (2.4%) is considered low.


Financial Health

How is Cairn Homes's financial position?


Financial Position Analysis

Short Term Liabilities: CRN's short term assets (€1.0B) exceed its short term liabilities (€65.3M).

Long Term Liabilities: CRN's short term assets (€1.0B) exceed its long term liabilities (€188.1M).


Debt to Equity History and Analysis

Debt Level: CRN's debt to equity ratio (24.1%) is considered satisfactory.

Reducing Debt: CRN's debt to equity ratio has increased from 22.3% to 24.1% over the past 5 years.

Debt Coverage: CRN's debt is well covered by operating cash flow (27.1%).

Interest Coverage: CRN's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Dividend

What is Cairn Homes's current dividend yield, its reliability and sustainability?

4.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CRN's dividend (4.6%) is higher than the bottom 25% of dividend payers in the UK market (1.36%).

High Dividend: CRN's dividend (4.6%) is in the top 25% of dividend payers in the UK market (3.95%)


Stability and Growth of Payments

Stable Dividend: CRN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CRN's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.3%), CRN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRN's dividends in 3 years are forecast to be well covered by earnings (42.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Michael Stanley (55 yo)

no data

Tenure

€520,000

Compensation

Mr. Michael Stanley is a Co-Founder of Cairn Homes plc. Mr. Stanley serves as the Chief Executive Officer of Cairn Homes plc since June 2015 and has been its Executive Director since November 12, 2014. He...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD610.26K) is below average for companies of similar size in the UK market ($USD967.12K).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CRN's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CRN's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cairn Homes plc's employee growth, exchange listings and data sources


Key Information

  • Name: Cairn Homes plc
  • Ticker: CRN
  • Exchange: LSE
  • Founded: 2014
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£741.683m
  • Shares outstanding: 749.93m
  • Website: https://www.cairnhomes.com

Number of Employees


Location

  • Cairn Homes plc
  • 7 Grand Canal
  • Grand Canal Street Lower
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 21:43
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.