CRH (NYSE:CRH) Valuation in Focus Following Strong Q3 Earnings, Dividend Boost, and Major Buyback

CRH (NYSE:CRH) just released its third quarter results, reporting gains in both revenue and net income compared to last year. The company also increased its quarterly dividend and completed a large share buyback.

See our latest analysis for CRH.

CRH’s latest quarterly update, with double-digit net income growth and a bigger dividend, arrives after a year of robust share price momentum. The stock is now up nearly 20% so far in 2025. Long-term holders have seen the real rewards as well, with a stellar 188% total shareholder return over three years reflecting both operational progress and rising confidence in the company’s outlook.

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But with strong results and the stock near record highs, the big question now is whether CRH still offers value to new investors, or if expectations for future growth are already fully reflected in the price.

Most Popular Narrative: 16.6% Undervalued

CRH’s most widely followed narrative suggests material upside, with the estimated fair value of $133.27 standing well above the last close at $111.16. Anticipation is building as bullish projections for revenue and margins drive this optimistic outlook.

Strategic reinvestment into production automation, operational efficiencies, and capacity expansions at key aggregate and cement facilities is enabling CRH to achieve consecutive margin expansion (Q2 margins up 70bps YoY). This is increasing overall profitability and underpinning robust earnings growth.

Read the complete narrative.

Could new tech, automated plants, and a greener product suite be CRH’s ticket to sustained outperformance? The secret sauce behind this price target involves powerful improvements in operating leverage and profits. Want the lowdown? The full narrative holds the key drivers and crunches the numbers analysts are betting on.

Result: Fair Value of $133.27 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifts in government infrastructure funding or delays in US residential construction could quickly dampen CRH’s strong momentum and growth outlook.

Find out about the key risks to this CRH narrative.

Build Your Own CRH Narrative

If you see things differently or want to dive deeper into the numbers yourself, why not build your own perspective in just a few minutes? Do it your way

A great starting point for your CRH research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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