Crh Public Ltd Co (NYSE: CRH)

Sector: Basic Materials Industry: Building Materials CIK: 0000849395
Market Cap 82.74 Bn
P/B 3.55
P/E 24.11
P/S 2.24
ROIC (Qtr) 9.94
Div Yield % 0.89
Rev 1y % (Qtr) 5.27
Total Debt (Qtr) 20.15 Bn
Debt/Equity (Qtr) 0.86
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About

CRH Public Limited Company, known by its stock symbol CRH, is a significant player in the construction materials industry. The company is dedicated to providing essential materials, value-added building products, and construction services to customers across infrastructure, non-residential, and residential construction markets. CRH's primary business activities revolve around the production and supply of a wide range of building materials. These include aggregates, cement, ready-mixed concrete, asphalt, and concrete products. The company operates...

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Investment thesis

Bull case

  • Operating cash flow of 5.44B provides exceptional 175.48x coverage of minority interest expenses 31M, showing strong core operations.
  • Operating cash flow of 5.44B provides strong 40.90x coverage of stock compensation 133M, indicating sustainable incentive practices.
  • Retained earnings of 25.07B provide full 1.57x coverage of long-term debt 15.92B, indicating strong internal capital position.
  • Robust tangible asset base of 43.70B provides 8.32x coverage of working capital 5.26B, indicating strong operational backing.
  • Tangible assets of 43.70B provide robust 10.37x coverage of other current liabilities 4.21B, indicating strong asset backing.

Bear case

  • Operating cash flow of 5.44B barely covers its investment activities of (6.59B), with a coverage ratio of -0.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 5.44B provides thin coverage of dividend payments of (986M) with a -5.52 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 4.29B provide limited coverage of acquisition spending of (3.07B), which is -1.39x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 5.12B show weak coverage of depreciation charges of 2.40B, with a 2.13 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 5.44B barely covers operating expenses of (191M) with a -28.48 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Building Materials
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CRH Crh Public Ltd Co 82.74 Bn 24.11 2.24 20.15 Bn
2 VMC Vulcan Materials CO 39.95 Bn 35.72 5.07 4.87 Bn
3 MLM Martin Marietta Materials Inc 30.94 Bn 212.27 13.41 5.90 Bn
4 JHX James Hardie Industries plc 11.15 Bn 93.63 2.53 4.86 Bn
5 EXP Eagle Materials Inc 7.43 Bn 17.29 3.23 1.80 Bn
6 KNF Knife River Corp 5.32 Bn 35.87 1.75 1.24 Bn
7 USLM United States Lime & Minerals Inc 3.38 Bn 216.45 27.53 0.00 Bn
8 TTAM Titan America SA 3.19 Bn 19.19 1.95 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.66 1.41
EV to Cash from Ops. EV/CFO 17.83 23.36
EV to Debt EV to Debt 4.82 58.70
EV to EBIT EV/EBIT 18.95 27.99
EV to EBITDA EV/EBITDA 12.60 17.60
EV to Free Cash Flow [EV/FCF] EV/FCF 51.60 29.87
EV to Market Cap EV to Market Cap 1.17 0.53
EV to Revenue EV/Rev 2.63 4.30
Price to Book Value [P/B] P/B 3.55 5.38
Price to Earnings [P/E] P/E 24.11 46.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.48 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 21.50 4.53
Dividend per Basic Share Div per Share (Qtr) 1.09 0.43
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 38.98 7.56
Interest Coverage Int. cover (Qtr) 6.83 14.54
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -75.02 -813.53
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 39.22 438.80
Dividend Growth (1y) % Div 1y % (Qtr) -48.83 -5.93
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2.97 -73.90
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 10.53 -66.06
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 -59.38
EBT Growth (1y) % EBT 1y % (Qtr) -4.52 -52.02
EPS Growth (1y) % EPS 1y % (Qtr) 0.40 -67.29
FCF Growth (1y) % FCF 1y % (Qtr) -29.00 -5.79
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.72 12.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.63 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.11 0.03
Cash Ratio Cash Ratio (Qtr) 0.37 1.32
Current Ratio Curr Ratio (Qtr) 1.45 2.95
Debt to Equity Ratio Debt/Equity (Qtr) 0.86 0.52
Interest Cover Ratio Int Coverage (Qtr) 6.83 14.54
Times Interest Earned Times Interest Earned (Qtr) 6.83 14.54
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.40 -43.04
EBIT Margin % EBIT Margin % (Qtr) 13.87 -72.64
EBT Margin % EBT Margin % (Qtr) 11.84 -77.34
Gross Margin % Gross Margin % (Qtr) 36.10 30.03
Net Profit Margin % Net Margin % (Qtr) 9.30 -82.01