CRH CRH PLC

CRH is the world's largest building materials company, producing and distributing cement, aggregates, asphalt, and value-added construction products globally. Sector: Materials.

CRH PLC (CRH) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a returns-on-capital standpoint, ROIC is 9.48%, WACC is 9.72%, and the economic spread is -0.24%. On balance, ROIC falls short of WACC, meaning the company is not yet generating returns sufficient to cover their cost of capital. Supporting metrics show ROE at 16.16% and ROA at 6.49%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

The market currently prices the company at trailing P/E of 18.97, forward P/E of 17.46, PEG of 1.22. The gap between P/E and forward P/E is small, suggesting the valuation is not contingent on a near-term earnings step-change. The PEG ratio points to a company where growth is not yet fully priced in — a setup that historically tends to be favorable for forward returns. The aggregate current ratio of 1.74 points to adequate liquidity for the company. Valuation and liquidity together frame a company where the price paid today is a reasonable bet on earnings delivery — but not a margin-of-safety purchase at current levels.

On profitability at each income statement layer, gross margin sits at 36.13%, operating margin at 14.24%, and free cash flow margin at 7.78%. Gross margins are moderate, pointing to the company where unit economics are functional but not a source of structural advantage. The operating margin reading is modest, consistent with businesses still working to scale their cost structures efficiently. Free cash flow margins are moderate, with a meaningful but not exceptional share of revenue converting to cash after capex. Taken together, margins are adequate but uneven, suggesting earnings quality is not uniformly strong across all levels.

Looking at what the company are actually delivering versus what analysts are pricing in, TTM revenue growth of 6.16% indicating top-line growth that is constructive without being speculative. At the same time, the estimated 12-month price change of 33.67%, where target-based upside appears notably strong in the current setup. Revenue growth captures operating momentum, while price targets reflect external expectations that can move with rates, risk appetite, and sector sentiment. Whether current momentum translates into delivered returns will depend on the durability of both top-line trends and the assumptions embedded in analyst targets. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Putting the pieces together, this is a profile with genuine merit: the numbers support confidence in the forward case without requiring heroic assumptions.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.