NYSE:CRH

Stock Analysis Report

Executive Summary

CRH plc, through its subsidiaries, manufactures and distributes building materials, products, and solutions for the construction industry worldwide.


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


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: CRH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

CRH

-3.8%

US Basic Materials

-3.8%

US Market


1 Year Return

-20.6%

CRH

-23.0%

US Basic Materials

-15.9%

US Market

Return vs Industry: CRH exceeded the US Basic Materials industry which returned -22.9% over the past year.

Return vs Market: CRH underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

CRHIndustryMarket
7 Day1.1%-3.8%-3.8%
30 Day-24.6%-27.5%-17.4%
90 Day-34.9%-36.8%-24.1%
1 Year-18.8%-20.6%-22.3%-23.0%-14.1%-15.9%
3 Year-20.2%-25.0%-27.1%-28.9%10.0%2.8%
5 Year9.7%-1.6%8.4%4.3%27.6%13.5%

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

No news available

Valuation

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

32.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRH ($25.87) is trading below our estimate of fair value ($38.1)

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


Price To Earnings Ratio

PE vs Industry: CRH is good value based on its PE Ratio (12x) compared to the Basic Materials industry average (14.4x).

PE vs Market: CRH is good value based on its PE Ratio (12x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: CRH is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CRH is overvalued based on its PB Ratio (1.1x) compared to the US 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 19 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRH's forecast earnings growth (6.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CRH's earnings (6.3% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: CRH's revenue (2.7% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: CRH's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRH's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has CRH performed over the past 5 years?

21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRH has high quality earnings.

Growing Profit Margin: CRH's current net profit margins (6.4%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: CRH's earnings have grown significantly by 21.8% per year over the past 5 years.

Accelerating Growth: CRH's earnings growth over the past year (20.7%) is below its 5-year average (21.8% per year).

Earnings vs Industry: CRH earnings growth over the past year (20.7%) underperformed the Basic Materials industry 32.4%.


Return on Equity

High ROE: CRH's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is CRH's financial position?


Financial Position Analysis

Short Term Liabilities: CRH's short term assets (€10.3B) exceed its short term liabilities (€6.4B).

Long Term Liabilities: CRH's short term assets (€10.3B) do not cover its long term liabilities (€13.5B).


Debt to Equity History and Analysis

Debt Level: CRH's debt to equity ratio (51.7%) is considered high.

Reducing Debt: CRH's debt to equity ratio has reduced from 57.5% to 51.7% over the past 5 years.

Debt Coverage: CRH's debt is well covered by operating cash flow (38.4%).

Interest Coverage: CRH's interest payments on its debt are well covered by EBIT (10x coverage).


Balance Sheet

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

Debt Coverage by Assets: CRH's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

3.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CRH's dividend (3.43%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: CRH's dividend (3.43%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.1%), CRH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRH's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Albert Manifold (56yo)

6.25s

Tenure

€9,311,000

Compensation

Mr. Albert Jude Manifold, FCPA, MBA, MBS, serves as a Director at LyondellBasell Industries N.V. since May 31, 2019. Mr. Manifold has been Chief Executive Officer at CRH Plc since January 01, 2014 and its  ...


CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD10.05M) is about average for companies of similar size in the US market ($USD12.09M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Albert Manifold
CEO & Executive Director6.25yrs€9.31m0.00017% 34.9k
Finbarr Murphy
Group Finance Director & Executive Director4.25yrs€3.15m0.00025% 51.3k
Tom Holmes
Head of Investor Relationsno datano datano data
Edwin Bouwman
Chief Human Resources Officer0.67yrno datano data
Henry Morris
MD of Materials - Europe and Regional Director for Switzerland Finland & The Baltic Region19.25yrsno datano data
Mark Schack
Executive Vice President of Talent Managementno datano datano data
Keith Haas
President of Building Productsno datano datano data
Rick Mergens
Executive Vice President of Group Performance5.42yrsno datano data
Scott Parson
President of Mountain West Division & Senior VP of Americas Materials Westno datano datano data
Michael Lynch
Executive Vice President of Development for Americano datano datano data

5.4yrs

Average Tenure

56yo

Average Age

Experienced Management: CRH's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albert Manifold
CEO & Executive Director6.25yrs€9.31m0.00017% 34.9k
Finbarr Murphy
Group Finance Director & Executive Director4.25yrs€3.15m0.00025% 51.3k
Mark Towe
Chairman of CRH Americas & CEO of Oldcastle4.25yrsno datano data
Gillian Platt
Senior Independent Director1.58yrs€175.00k0.00013% 26.7k
Shaun Kelly
Independent Non-Executive Director0.33yr€15.00k0.00013% 26.7k
Richard Boucher
Independent Non-Executive Chairman0.25yr€165.00k0.00093% 190.7k
Lucinda Riches
Independent Non-Executive Director5.08yrs€135.00k0.00064% 131.3k
Henderikus Th. E. M. R. Rottinghuis
Independent Non-Executive Director6.17yrs€135.00k0.00013% 26.7k
Heather McSharry
Independent Non-Executive Director8.17yrs€151.00k0.00056% 114.8k
Patrick Kennedy
Independent Non-Executive Director5.25yrs€135.00kno data

4.7yrs

Average Tenure

60yo

Average Age

Experienced Board: CRH's board of directors are considered experienced (4.7 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

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


Key Information

  • Name: CRH plc
  • Ticker: CRH
  • Exchange: NYSE
  • Founded: 1936
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: €19.009b
  • Listing Market Cap: €20.508b
  • Shares outstanding: 784.52m
  • 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)SPON ADR EA REPR 1 ORD SHS EUR0.32USUSDJul 1989
0A2DLSE (London Stock Exchange)SPON ADR EA REPR 1 ORD SHS EUR0.32GBUSDJul 1989
XCRADB (Deutsche Boerse AG)SPON ADR EA REPR 1 ORD SHS EUR0.32DEEURJul 1989
CRH NBMV (Bolsa Mexicana de Valores)SPON ADR EA REPR 1 ORD SHS EUR0.32MXMXNJul 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, products, and solutions for the construction industry worldwide. It operates through three segments: Europe Materials, Americas Materials, and Building Products. The company manufactures and supplies cement, lime and limestone, aggregates, ready mixed and precast concrete, and asphalt products; and construction accessories, architectural products, and building envelopes. It also offers concrete floor elements, pavers, precast concrete and structural elements, clinkers, mortars, coated macadam products, roof tiles, concrete paving products, structural concrete products, concrete blocks and pipes, and contract surfacing products; and custom fabricated and tempered glass products, curtain walls, utility boxes, trench systems, pre-stressed planks, and structural elements, as well as specialty masonry, bagged stone, mulch and stone, hardscape and patio, and landscaping walling products. In addition, the company offers logistics and railway infrastructure, building and civil engineering contracting, and asphalt paving services; markets and distributes cement; and supplies access chambers and ducting products. It serves national, regional, and local governments; and contractors, homebuilders, homeowners, and sub-contractors for use in a range of construction projects, including public infrastructure, commercial buildings, and residential structures. CRH plc was founded in 1936 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 01:52
End of Day Share Price2020/04/03 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.