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CRH plc (CRH)
NYSE:CRH
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CRH plc (CRH) AI Stock Analysis

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CRH plc

(NYSE:CRH)

Rating:78Outperform
Price Target:
$106.00
▲(14.05%Upside)
CRH plc benefits from strong financial performance and positive earnings call highlights, including revenue growth and strategic acquisitions. Technical analysis and valuation indicate a stable but slightly cautious market stance due to a high P/E ratio and moderate dividend yield. The company's financial stability and proactive strategies make it a solid choice for investors seeking growth in the construction materials sector.
Positive Factors
Currency Impact
Currency tailwinds on European operations from the recent weakness in the US$ are expected to be beneficial.
Index Inclusion
Potential inclusion in the S&P 500 index could generate significant trading activity.
Valuation
CRH's continued discount to larger-cap U.S. materials peers presents a longer-term opportunity to narrow the gap as the portfolio evolves.
Negative Factors
Earnings Growth
Organic growth for the Americas operations is expected to moderate, impacting EBITDA and EPS.
Market Perception
CRH's stock and some US materials peers are perceived as looking stretched, reminiscent of a past scenario where a stock subsequently fell significantly.
Project Valuation
The cumulative value of projects bid by CRH subsidiaries declined in the second quarter compared to last year.

CRH plc (CRH) vs. SPDR S&P 500 ETF (SPY)

CRH plc Business Overview & Revenue Model

Company DescriptionCRH plc (CRH) is a leading global building materials company, providing a wide range of products and solutions across the construction sector. Based in Dublin, Ireland, CRH operates in three major segments: Americas Materials, Europe Materials, and Building Products. The company offers an extensive portfolio that includes aggregates, cement, asphalt, ready-mixed concrete, and a variety of building products used in residential, commercial, and infrastructure projects worldwide. CRH is known for its commitment to sustainable building practices and innovation within the industry.
How the Company Makes MoneyCRH makes money primarily through the production and sale of building materials and products. The company's revenue model is diversified across its three main segments. In the Americas Materials segment, revenue is generated from the extraction, processing, and sale of aggregates, asphalt, and readymix concrete, catering to road construction and infrastructure projects. The Europe Materials segment similarly focuses on the production and distribution of cement and other building materials across European markets. The Building Products segment generates income through the manufacture and sale of architectural products, precast concrete, and other building materials, serving residential and commercial construction needs. Key revenue streams include direct sales to construction companies, partnerships with governments for infrastructure projects, and a strong distribution network that ensures product availability across diverse geographies. Strategic acquisitions and sustainability initiatives further enhance CRH's market position and contribute to its earnings.

CRH plc Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: -5.03%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to the year with notable revenue and EBITDA growth, robust capital allocation activities, and positive market demand. However, challenges such as weather impacts, seasonal losses, and increased net debt were also highlighted. Despite these challenges, the overall outlook remains positive with reaffirmed guidance and continued shareholder returns.
Q1-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Total revenues of $6.8 billion were 3% ahead, with adjusted EBITDA of $495 million, 11% ahead of the prior year period, and a further 50 basis points of margin expansion.
Positive Capital Allocation and Acquisitions
Completed eight value accretive bolt-on acquisitions for approximately $600 million, with a focus on essential materials, road solutions, critical infrastructure, and outdoor living.
Resilient Demand in Key Markets
Underlying demand across key end markets remains positive, supported by infrastructure funding and reindustrialization activity, particularly in manufacturing and data centers.
International Solutions Performance
Total revenue growth of 7% translated into a 22% increase in adjusted EBITDA and a further 70 basis points of margin improvement in International Solutions.
Continued Shareholder Returns
Returned $500 million in share buybacks so far this year, with a further quarterly tranche of $300 million and a 6% increase in quarterly dividend.
Negative Updates
Weather Impact on Volumes
Adverse weather conditions impacted activity levels, particularly in Americas Material Solutions, resulting in essential materials revenues being 3% behind the prior year.
Seasonal Loss in Diluted Earnings Per Share
Reported a small loss in diluted earnings per share, reflecting the seasonal nature of the business and is not unusual for the first quarter.
Subdued Residential Activity
Challenging weather conditions and subdued residential activity affected revenues, with Outdoor Living Solutions Q1 revenues 3% below the prior year.
Net Debt Increase
Net debt position increased to $12.7 billion at the end of the first quarter, with a net debt to adjusted EBITDA ratio of approximately 1.8 times.
Company Guidance
During the CRH First Quarter 2025 Results Presentation, CEO Jim Mintern and his team provided guidance for the year, reaffirming their financial expectations despite macroeconomic uncertainties. They anticipate full-year adjusted EBITDA to range between $7.3 billion and $7.7 billion, net income between $3.7 billion and $4.1 billion, and diluted earnings per share from $5.34 to $5.80. The company highlighted a positive start to the year with a 3% increase in total revenues to $6.8 billion and an 11% rise in adjusted EBITDA to $495 million. CRH's capital allocation strategy included eight bolt-on acquisitions totaling approximately $600 million and a continuation of its share buyback program. They also reported a net debt position of $12.7 billion, with a net debt to adjusted EBITDA ratio of 1.8 times. The company is focused on maintaining pricing momentum and is monitoring the impact of macroeconomic factors closely.

CRH plc Financial Statement Overview

Summary
CRH plc demonstrates strong financial health with consistent revenue growth, improved profit margins, and a solid balance sheet. The company exhibits effective cost management and operational efficiency. However, there is room for improvement in free cash flow conversion.
Income Statement
88
Very Positive
CRH plc has shown impressive growth with a consistent increase in revenue over the past years. The revenue growth rate from 2023 to 2024 was approximately 1.78%, indicating a stable upward trajectory. The gross profit margin improved, reaching 35.7% in 2024, reflecting effective cost management. The net profit margin also increased to 9.81%, showcasing enhanced profitability. EBIT and EBITDA margins were strong at 13.84%, indicating robust operational efficiency.
Balance Sheet
82
Very Positive
CRH plc maintains a solid balance sheet with a debt-to-equity ratio of 0.71, suggesting a balanced approach to leveraging. The return on equity (ROE) is a solid 16.16%, indicating effective use of shareholders' equity to generate profits. The equity ratio stands at 42.7%, highlighting a strong equity position and financial stability. However, a slight increase in total debt warrants monitoring.
Cash Flow
80
Positive
The cash flow statement reveals a modest decrease in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.43, indicating efficient cash conversion from net income. The free cash flow to net income ratio of 0.69 suggests room for improvement in converting earnings into free cash flow. Despite these challenges, the company has maintained healthy operating cash flows.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue35.57B34.95B32.72B30.98B27.59B
Gross Profit12.70B11.96B10.88B10.49B9.16B
EBITDA6.88B5.47B5.00B4.38B2.96B
Net Income3.49B3.18B2.68B2.63B1.12B
Balance Sheet
Total Assets50.61B47.47B45.19B44.67B44.94B
Cash, Cash Equivalents and Short-Term Investments3.88B6.33B5.94B5.78B7.72B
Total Debt15.31B13.02B10.96B12.16B13.85B
Total Liabilities27.76B25.85B22.85B23.76B24.60B
Stockholders Equity21.61B20.85B21.69B20.23B19.66B
Cash Flow
Free Cash Flow2.41B3.20B2.28B2.42B2.94B
Operating Cash Flow4.99B5.02B3.80B3.98B3.94B
Investing Cash Flow-6.29B-2.39B-917.00M-2.51B-1.06B
Financing Cash Flow-1.19B-2.38B-2.50B-3.11B287.00M

CRH plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price92.94
Price Trends
50DMA
93.26
Negative
100DMA
92.86
Positive
200DMA
94.58
Negative
Market Momentum
MACD
0.58
Negative
RSI
49.08
Neutral
STOCH
27.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRH, the sentiment is Negative. The current price of 92.94 is above the 20-day moving average (MA) of 92.69, below the 50-day MA of 93.26, and below the 200-day MA of 94.58, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRH.

CRH plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CRCRH
78
Outperform
£63.67B19.9315.72%1.59%2.11%3.37%
EXEXP
78
Outperform
$6.91B15.6833.52%0.47%0.05%0.96%
VMVMC
78
Outperform
$34.43B37.2912.10%0.75%-2.24%3.00%
CXCX
72
Outperform
$11.12B8.026.58%1.21%-8.41%570.14%
MLMLM
69
Neutral
$33.06B31.5311.88%0.58%-0.54%-48.61%
62
Neutral
$10.14B9.960.09%2.90%2.26%-33.42%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRH
CRH plc
92.94
14.28
18.16%
CX
Cemex SAB
7.74
1.67
27.51%
EXP
Eagle Materials
216.00
-12.94
-5.65%
MLM
Martin Marietta Materials
553.09
-2.71
-0.49%
VMC
Vulcan Materials
263.01
8.82
3.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025