0R15 8884.0068 1.4156% 0R1E 9171.0 0.0% 0M69 None None% 0R2V 255.5 0.3929% 0QYR 1619.0 0.0% 0QYP 434.5 -0.344% 0RUK None None% 0RYA 1600.0 4.5752% 0RIH 195.2 1.3763% 0RIH 195.2 1.3763% 0R1O 225.5 9877.8761% 0R1O None None% 0QFP None None% 0M2Z 255.0 0.2457% 0VSO 33.3 -6.4738% 0R1I None None% 0QZI 596.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 236.3943 1.5483%
CRH PLC (LON: CRH)
CRH PLC is an FTSE 100 listed Company operator of the building materials business in North America and heavy side materials business in Europe. Moreover, the products are used in construction projects ranging from foundations to frame and roofing, to fitting out the interior space and improving the exterior aesthetic, to on-site works and infrastructural projects, including roads and bridges.
On 23 November 2021, the Company will release a trading update.
Recent trend of dividend payments
CRH had distributed regular dividend payments for the last five years. Moreover, it had paid an interim dividend of 23 US cents per share on 08 October 2021 with an ex-dividend date of 09 September 2021. It represented a year-on-year increase of around 4.50%.
(Source: LSE; Charts created by Kalkine Group)
Growth Prospects
(Source: Company presentation)
Key Risks
Now, we will analyse the Key Fundamental Statistics & Shareholding Pattern of CRH PLC.
BlackRock Advisors (UK) Limited is the most significant shareholder as it holds nearly 54.95 million shares as of 30 September 2021.
Recent News
Non-Executive Board Appointment: On 28 October 2021, CRH had appointed Mr. Badar Khan as a non-executive Director, with effect from 27 October 2021.
H1 FY21 Financial & Operational Highlights (for six months ended 30 June 2021, as of 26 August 2021)
(Source: Company result)
Financial Ratios (H1 FY21)
Share Price Performance Analysis
(Source: Refinitiv, chart created by Kalkine Group)
On 01 November 2021, at 08:03 AM GMT, CRH’s shares were trading at GBX 3,525.00, up by around 0.54% from the previous day closing price. Stock 52-week High and Low were 3,936.00 and GBX 2,728.00, respectively.
From a technical perspective, the 20-days exponential moving average of GBX 3,488.00 indicates an upside potential in the stock price. Moreover, the MACD line remained above the signal line, indicating an upside momentum in the stock price.
Over the last two years, CRH’s stock price has delivered a positive return of ~23.70%, and it has outperformed the FTSE 100 index (benchmark index) with a return of approximately negative 0.53%.
Valuation Methodology: Price/Earnings Approach (NTM) (Illustrative)
Business Outlook
The Company had reported outstanding H1 FY21 results with robust top-line revenue growth and strong profitability. Moreover, CRH would continue to generate strong cash levels to invest in future growth opportunities for the business. The Company had already invested USD 1.10 billion to expand the business networks. CRH had anticipated H2 FY21 group EBITDA to remain well ahead of the H1 FY21 levels boosted by the current trading conditions and the positive momentum across all geographies. However, the stock price may undergo correction amid increasing Treasury yields and rising inflation worldwide. In a nutshell, the Company aimed to generate lucrative returns for the shareholders with the increased focus on essential RMI activity and a strong pipeline of growth opportunities.
Considering the bright EBITDA guidance, outstanding bottom-line business growth, record cash generation, strong dividend growth, and support from the valuation as done using the above method, we have given a “BUY” recommendation on CRH PLC at the current price of GBX 3,525.00 (as on 01 November 2021 at 08:03 AM GMT), with lower-double digit upside potential based on 16.17x Price/NTM Earnings (approx.) on FY22E earnings per share (approx.).
*The reference data in this report has been partly sourced from REFINITIV.
*All forecasted figures and Peer information have been taken from REFINITIV.
*Dividend Yield may vary as per the stock price movement.
*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.
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