CRH (ISE:CRG) - Share price, News & Analysis

Q: What is the Fair Price of CRG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CRG (€37.93) is trading below our estimate of [[fair value]] (€212.26)

CRG fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	5/6
Financial Health	5/6
Dividends	5/6

CRG Stock Overview

CRH plc, through its subsidiaries, manufactures and distributes building materials.

Rewards

Trading at 82.1% below our estimate of its fair value

Earnings are forecast to grow 4.94% per year

Earnings grew by 128.6% over the past year

Pays a reliable dividend of 3.09%

Risk Analysis

No risks detected for CRG from our risk checks.

CRH Competitors

Smurfit Kappa Group

ISE:SK3

€9.7b

Holcim

SWX:HOLN

CHF27.6b

Anhui Conch Cement

SEHK:914

HK$193.1b

Vulcan Materials

NYSE:VMC

US$23.3b

Price History & Performance

Summary of all time highs, changes and price drops for CRH
Historical stock prices
Current Share Price	UK£37.93
52 Week High	UK£48.18
52 Week Low	UK£31.88
Beta	0.89
1 Month Change	9.78%
3 Month Change	1.23%
1 Year Change	-16.23%
3 Year Change	33.51%
5 Year Change	26.62%
Change since IPO	701.68%

Recent News & Updates

Apr 14

What Does CRH plc's (ISE:CRG) Share Price Indicate?

Let's talk about the popular CRH plc ( ISE:CRG ). The company's shares received a lot of attention from a substantial...

Shareholder Returns

	CRG	IE Basic Materials	IE Market
7D	-0.2%	0.6%	-0.8%
1Y	-16.2%	-21.6%	-18.8%

Return vs Industry: CRG exceeded the Irish Basic Materials industry which returned -20.7% over the past year.

Return vs Market: CRG exceeded the Irish Market which returned -18.8% over the past year.

Price Volatility

Is CRG's price volatile compared to industry and market?
CRG volatility
CRG Average Weekly Movement	3.8%
Basic Materials Industry Average Movement	4.9%
Market Average Movement	5.6%
10% most volatile stocks in IE Market	9.2%
10% least volatile stocks in IE Market	4.0%

Stable Share Price: CRG is less volatile than 75% of Irish stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
1936	77,400	Albert Manifold	https://www.crh.com

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.

CRH Fundamentals Summary

How do CRH's earnings and revenue compare to its market cap?
CRG fundamental statistics
Market Cap	US$29.64b
Earnings (TTM)	US$2.57b
Revenue (TTM)	US$30.98b

11.6x

P/E Ratio

1.0x

P/S Ratio

Is CRG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CRG income statement (TTM)
Revenue	US$30.98b
Cost of Revenue	US$20.49b
Gross Profit	US$10.49b
Other Expenses	US$7.92b
Earnings	US$2.57b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	3.39
Gross Margin	33.85%
Net Profit Margin	8.28%
Debt/Equity Ratio	50.2%

How did CRG perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

37%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CRG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CRG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CRG. This is calculated by dividing CRG's market cap by their current preferred multiple.
What is CRG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$29.64b

CRG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	7.1x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does CRG's PE Ratio compare to its peers?

CRG PE Ratio vs Peers

The above table shows the PE ratio for CRG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.8x
SK3 Smurfit Kappa Group	10.2x	-1.0%	€9.7b
HOLN Holcim	10.6x	5.8%	CHF27.6b
914 Anhui Conch Cement	4.4x	2.7%	HK$193.1b
VMC Vulcan Materials	38.3x	19.6%	US$23.3b
CRG CRH	11.6x	4.9%	€24.3b

Price-To-Earnings vs Peers: CRG is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (15.8x).

Price to Earnings Ratio vs Industry

How does CRG's PE Ratio compare vs other companies in the European Basic Materials Industry?

Price-To-Earnings vs Industry: CRG is expensive based on its Price-To-Earnings Ratio (11.6x) compared to the European Basic Materials industry average (9.7x)

Price to Earnings Ratio vs Fair Ratio

What is CRG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CRG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.6x
Fair PE Ratio	18.8x

Price-To-Earnings vs Fair Ratio: CRG is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).

Share Price vs Fair Value

What is the Fair Price of CRG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CRG (€37.93) is trading below our estimate of fair value (€212.26)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is CRH forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRG's forecast earnings growth (4.9% per year) is above the savings rate (0.5%).

Earnings vs Market: CRG's earnings (4.9% per year) are forecast to grow slower than the Irish market (13.2% per year).

High Growth Earnings: CRG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CRG's revenue (3% per year) is forecast to grow slower than the Irish market (8.2% per year).

High Growth Revenue: CRG's revenue (3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CRG's Return on Equity is forecast to be low in 3 years time (13.7%).

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Past Performance

How has CRH performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CRG has high quality earnings.

Growing Profit Margin: CRG's current net profit margins (8.3%) are higher than last year (4.1%).

Past Earnings Growth Analysis

Earnings Trend: CRG's earnings have grown by 2.2% per year over the past 5 years.

Accelerating Growth: CRG's earnings growth over the past year (128.6%) exceeds its 5-year average (2.2% per year).

Earnings vs Industry: CRG earnings growth over the past year (128.6%) exceeded the Basic Materials industry 28.2%.

Return on Equity

High ROE: CRG's Return on Equity (12.5%) is considered low.

Discover strong past performing companies

Financial Health

How is CRH's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CRG's short term assets ($14.0B) exceed its short term liabilities ($7.6B).

Long Term Liabilities: CRG's short term assets ($14.0B) do not cover its long term liabilities ($16.2B).

Debt to Equity History and Analysis

Debt Level: CRG's net debt to equity ratio (22.6%) is considered satisfactory.

Reducing Debt: CRG's debt to equity ratio has reduced from 54.1% to 50.2% over the past 5 years.

Debt Coverage: CRG's debt is well covered by operating cash flow (40.1%).

Interest Coverage: CRG's interest payments on its debt are well covered by EBIT (7.6x coverage).

Balance Sheet

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Dividend

What is CRH current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CRG's dividend (3.09%) is higher than the bottom 25% of dividend payers in the Irish market (1.41%).

High Dividend: CRG's dividend (3.09%) is low compared to the top 25% of dividend payers in the Irish market (3.84%).

Stability and Growth of Payments

Stable Dividend: CRG's dividends per share have been stable in the past 10 years.

Growing Dividend: CRG's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (36.8%), CRG's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (34.5%), CRG's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure

CEO

Albert Manifold (59 yo)

8.58yrs

Tenure

US$15,814,853

Compensation

Mr. Albert Jude Manifold, FCPA, MBA, MBS, is an Independent Non-Executive Director at LyondellBasell Industries N.V. since May 31, 2019. Mr. Manifold has been Group Chief Executive at CRH Plc since January...

CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD15.81M) is above average for companies of similar size in the Irish market ($USD4.24M).

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

Leadership Team

Experienced Management: CRG's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: CRG's board of directors are considered experienced (3.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/11 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31