ISE:CRG

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CRG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

CRG

0.4%

IE Basic Materials

1.5%

IE Market


1 Year Return

53.8%

CRG

27.2%

IE Basic Materials

23.4%

IE Market

Return vs Industry: CRG exceeded the Irish Basic Materials industry which returned 27.2% over the past year.

Return vs Market: CRG exceeded the Irish Market which returned 23.4% over the past year.


Shareholder returns

CRGIndustryMarket
7 Day1.0%0.4%1.5%
30 Day5.9%2.8%3.9%
90 Day15.0%8.3%17.5%
1 Year57.8%53.8%31.2%27.2%26.1%23.4%
3 Year16.4%8.5%4.6%-3.8%25.4%19.4%
5 Year115.8%91.4%32.0%15.2%81.6%66.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRG (€35.09) is trading below our estimate of fair value (€43.03)

Significantly Below Fair Value: CRG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CRG is poor value based on its PE Ratio (17.8x) compared to the Basic Materials industry average (13x).

PE vs Market: CRG is poor value based on its PE Ratio (17.8x) compared to the Irish market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: CRG is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CRG is overvalued based on its PB Ratio (1.8x) compared to the XE Basic Materials industry average (1.1x).


Next Steps

Future Growth

How is CRH forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRG's forecast earnings growth (6.8% per year) is above the savings rate (0.06%).

Earnings vs Market: CRG's earnings (6.8% per year) are forecast to grow slower than the Irish market (11.9% per year).

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

Revenue vs Market: CRG's revenue is expected to decline over the next 3 years (-0.07% per year).

High Growth Revenue: CRG's revenue is forecast to decline over the next 3 years (-0.07% 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 (11.2%).


Next Steps

Past Performance

How has CRH performed over the past 5 years?

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRG has high quality earnings.

Growing Profit Margin: CRG's current net profit margins (5.7%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: CRG has become profitable over the past 5 years, growing earnings by 30.9% per year.

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

Earnings vs Industry: CRG had negative earnings growth (-12%) over the past year, making it difficult to compare to the Basic Materials industry average (26.1%).


Return on Equity

High ROE: CRG's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CRH's financial position?


Financial Position Analysis

Short Term Liabilities: CRG's short term assets (€9.9B) exceed its short term liabilities (€7.3B).

Long Term Liabilities: CRG's short term assets (€9.9B) do not cover its long term liabilities (€14.3B).


Debt to Equity History and Analysis

Debt Level: CRG's debt to equity ratio (60.9%) is considered high.

Reducing Debt: CRG's debt to equity ratio has increased from 53% to 60.9% over the past 5 years.

Debt Coverage: CRG's debt is well covered by operating cash flow (25.2%).

Interest Coverage: CRG's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: CRG has a high level of physical assets or inventory.

Debt Coverage by Assets: CRG's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.3%markettop25%4.5%industryaverage2.9%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: CRG's dividend (2.05%) isn’t notable compared to the bottom 25% of dividend payers in the Irish market (2.33%).

High Dividend: CRG's dividend (2.05%) is low compared to the top 25% of dividend payers in the Irish market (4.48%).


Stability and Growth of Payments

Stable Dividend: CRG's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: CRG's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

What is the CEO of CRH's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Albert Manifold (56yo)

5.9yrs

Tenure

€8,230,000

Compensation

Mr. Albert Jude Manifold serves as Director at LyondellBasell Industries N.V. since May 31, 2019. Mr. Albert Jude Manifold, FCPA, MBA, MBS, has been Chief Executive Officer at CRH Plc since January 01, 201 ...


CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD9.13M) is above average for companies of similar size in the Irish market ($USD2.63M).

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


Management Age and Tenure

5.5yrs

Average Tenure

60.5yo

Average Age

Experienced Management: CRG's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: CRG's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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.


Management Team

  • Michael Lynch (71yo)

    Executive Vice President of Development for America

    • Tenure: 0yrs
  • Finbarr Murphy (50yo)

    Finance Director & Executive Director

    • Tenure: 3.9yrs
    • Compensation: €2.74m
  • Albert Manifold (56yo)

    CEO & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €8.23m
  • Scott Parson

    President of Mountain West Division & Senior VP of Americas Materials West

    • Tenure: 0yrs
  • Henry Morris (65yo)

    MD of Materials - Europe and Regional Director for Switzerland Finland & The Baltic Region

    • Tenure: 18.9yrs
  • Mark Schack

    Executive Vice President of Talent Management

    • Tenure: 0yrs
  • Chris Madden

    Executive Vice President of Fleet Operations

    • Tenure: 0yrs
  • Rick Mergens

    Executive Vice President of Group Performance

    • Tenure: 5.1yrs
  • Jeff Schaffer

    Executive Vice President of West

    • Tenure: 0yrs
  • Frank Heisterkamp

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Gillian Platt (65yo)

    Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: €141.00k
  • Nicky Hartery (67yo)

    Non-Executive Chairman

    • Tenure: 7.6yrs
    • Compensation: €591.00k
  • Finbarr Murphy (50yo)

    Finance Director & Executive Director

    • Tenure: 3.9yrs
    • Compensation: €2.74m
  • Richie Boucher (61yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: €99.00k
  • Lucinda Riches (57yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: €120.00k
  • Albert Manifold (56yo)

    CEO & Executive Director

    • Tenure: 5.9yrs
    • Compensation: €8.23m
  • Henderikus Th. E. M. R. Rottinghuis (63yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: €120.00k
  • Heather McSharry (57yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: €120.00k
  • Mark Towe (69yo)

    Chairman of CRH Americas & CEO of Oldcastle

    • Tenure: 3.9yrs
  • Pat Kennedy (65yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: €120.00k

Company Information

CRH plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CRH plc
  • Ticker: CRG
  • Exchange: ISE
  • Founded: 1936
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: €27.208b
  • Shares outstanding: 790.02m
  • Website: https://www.crh.com

Number of Employees


Location

  • CRH plc
  • Stonemason’s Way
  • Rathfarnham
  • Dublin
  • Co. Dublin
  • 16
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRHNYSE (New York Stock Exchange)ADRUSUSDJul 1989
0A2DLSE (London Stock Exchange)ADRGBUSDJul 1989
XCRADB (Deutsche Boerse AG)ADRDEEURJul 1989
CRH NBMV (Bolsa Mexicana de Valores)ADRMXMXNJul 1989
CRHC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CRHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
CRGISE (Irish Stock Exchange)YesOrdinary SharesIEEURJan 1992
CRGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CRGIBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
CRHLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

CRH plc, through its subsidiaries, manufactures and distributes building materials. It operates through three segments: Europe Materials, Americas Materials, and Building Products. The company manufactures ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 20:50
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.