CRH Public Ltd Co (CRH) stock analysis

P/E below its 5-year median

CRH Public's P/E of 18.1 is below its own 5-year median of 19.3.

P/E below the industry

CRH Public's P/E of 18.1 is below the Materials median of 21.3.

EV/EBITDA below its 5-year median

CRH Public's EV/EBITDA of 10.5 is below its 5-year median of 12.0.

P/B above the industry

CRH Public's price-to-book of 2.56 is above the Materials median of 2.33.

Trading below fair value

The share price of $96.26 is below our fair value estimate of $102.04.

Margin of safety under 20%

The price is 5.7% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 4.3% over the last twelve months, against a 5-year average of 27.3% a year.

Growing faster than the industry

Revenue grew 5.6% over the last twelve months; the Materials median is 2.3%.

Guidance lowered

CRH Public lowered its 2026 Capital expenditure outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 36.2% over the last twelve months, against 36.1% a year earlier.

Return on equity under 15%

Return on equity was 14.8% over the last twelve months and averaged 15.8% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

CRH Public's return on equity of 14.8% is above the Materials median of 5.1%.

Earnings grew over 5 years

Net income grew 27.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 9.2% over the last twelve months, against a 5-year average of 9.9%.

Net margin above the industry

CRH Public's net margin of 9.2% is above the Materials median of 2.8%.

High debt

Debt is 78.5% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 62.1% five years ago to 78.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 26.4% of total debt.

Interest well covered

Operating income covers interest expense 6.3 times.

Short-term assets cover short-term debts

Current assets are 1.46 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.74; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

CRH Public paid dividends worth 1.2% of the share price over the last twelve months.

Yield below Treasuries

The 1.2% yield is below the 4.6% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.9% or more; CRH Public yields 1.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.