LSE:CRN

Stock Analysis Report

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Executive Summary

Cairn Homes plc operates as a homebuilder in Ireland.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Cairn Homes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CRN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

CRN

8.7%

GB Consumer Durables

-0.8%

GB Market


1 Year Return

-24.3%

CRN

-3.9%

GB Consumer Durables

-15.5%

GB Market

Return vs Industry: CRN underperformed the UK Consumer Durables industry which returned -4% over the past year.

Return vs Market: CRN underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

CRNIndustryMarket
7 Day1.5%8.7%-0.8%
30 Day1.3%4.1%0.3%
90 Day9.3%7.7%5.6%
1 Year-22.6%-24.3%-1.3%-3.9%-11.5%-15.5%
3 Year-36.7%-38.1%7.7%-7.4%-4.6%-16.3%
5 Year-18.1%-19.9%28.5%-0.8%12.5%-12.6%

Price Volatility Vs. Market

How volatile is Cairn Homes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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 (€0.88) is trading below our estimate of fair value (€3.2)

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 (13.5x) compared to the GB Consumer Durables industry average (9.9x).

PE vs Market: CRN is good value based on its PE Ratio (13.5x) compared to the UK market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: CRN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CRN is good value based on its PB Ratio (0.9x) compared to the GB Consumer Durables industry average (1x).


Next Steps

Future Growth

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

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRN's earnings are forecast to decline over the next 3 years (-0.6% per year).

Earnings vs Market: CRN's earnings are forecast to decline over the next 3 years (-0.6% per year).

High Growth Earnings: CRN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CRN's revenue (3.5% per year) is forecast to grow faster than the UK market (3.3% per year).

High Growth Revenue: CRN's revenue (3.5% per year) is forecast to grow slower 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 (6.8%).


Next Steps

Past Performance

How has Cairn Homes performed over the past 5 years?

93.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRN has high quality earnings.

Growing Profit Margin: CRN's current net profit margins (11.8%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: CRN's earnings have grown significantly by 93.8% per year over the past 5 years.

Accelerating Growth: CRN's earnings growth over the past year (66.5%) is below its 5-year average (93.8% per year).

Earnings vs Industry: CRN earnings growth over the past year (66.5%) exceeded the Consumer Durables industry -4.2%.


Return on Equity

High ROE: CRN's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Cairn Homes's financial position?


Financial Position Analysis

Short Term Liabilities: CRN's short term assets (€966.4M) exceed its short term liabilities (€52.5M).

Long Term Liabilities: CRN's short term assets (€966.4M) exceed its long term liabilities (€153.9M).


Debt to Equity History and Analysis

Debt Level: CRN's debt to equity ratio (19.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CRN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CRN's debt is well covered by operating cash flow (67%).

Interest Coverage: CRN's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

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

10.70%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CRN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CRN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CRN is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CRN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Michael Stanley (54yo)

no data

Tenure

€966,000

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 ($USD1.09M) is about average for companies of similar size in the UK market ($USD1.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Stanley
Co-Founderno data€966.00k2.81% 18.6m
Alan McIntosh
Co-Founder & Non Executive Director5.67yrs€60.00k5.29% 34.9m
Shane Doherty
CFO & Executive Director0.25yrno datano data
Kevin Cleary
Technical Director0.75yrno datano data
Declan Murray
Head of Investor Relationsno datano datano data
Maura Winston
Chief People Officer0.33yrno datano data
Liam O'Brien
Managing Directorno datano datano data
Ian Cahill
Head of Financeno datano datano data
Tara Grimley
Company Secretary2.33yrsno datano data

0.5yrs

Average Tenure

53yo

Average Age

Experienced Management: CRN's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Stanley
Co-Founderno data€966.00k2.81% 18.6m
Alan McIntosh
Co-Founder & Non Executive Director5.67yrs€60.00k5.29% 34.9m
Shane Doherty
CFO & Executive Director0.25yrno datano data
Jayne McGivern
Independent Non-Executive Director1.33yrs€50.00kno data
John Reynolds
Independent Non-Executive Chairman5.25yrs€150.00k0.017% 113.8k
Gary Britton
Independent Non-Executive Director5.25yrs€75.00k0.017% 114.5k
Linda Hickey
Independent Non-Executive Director1.25yrs€49.00k0.010% 66.1k
Andrew Bernhardt
Independent Non-Executive Director5.25yrs€60.00kno data
Giles Davies
Senior Independent Directorno data€82.00k0.0067% 44.0k
David O'Beirne
Independent Non-Executive Director1.33yrs€50.00kno data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Board: CRN's board of directors are considered experienced (5.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Cairn Homes plc's company bio, 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: €660.163m
  • Shares outstanding: 749.33m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRNLSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2015
C5HISE (Irish Stock Exchange)YesOrdinary SharesIEEURJun 2015
C5HDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015

Biography

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. The company was incorporated in 2014 and is based in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 20:58
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.