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CRH — CRH plc

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins -0.04%
Profit Margins 9.64%
Return on Equity 15.81%
Return on Assets 6.05%
Free Float 0.67B
Dividend Yield 1.39%
Short Int % Utilisation 2.2%

2.2 Growth

Metric Value
Revenue Growth 9.1%
Free Cash Flow 0.79B
EBITDA 11.27 (Ratio)
Enterprise Value 85.47B
EV/Revenue 2.25
EV/EBITDA 11.27

Revenue growth of 9.1% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -7.36%
Risk / Std Dev (Ann.)* 31.51%
1-Year Price Return* -11.72%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $97.15
52-Week Range $94.12 – $131.55
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $37.45B $35.57B
Net income Reported net income $3.73B $3.46B
Total assets Year-end reported balance $58.33B $50.61B
Shareholders’ equity Year-end reported balance $24.00B $21.61B
Net margin Net income ÷ revenue 9.96% 9.72%
Asset turnover Revenue ÷ total assets 0.6420x 0.7028x
Equity multiplier Total assets ÷ shareholders’ equity 2.4300x 2.3424x
ROE Net margin × asset turnover × equity multiplier 15.54% 16.00%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $37.45B
Prior annual revenue $35.57B
EBIT $5.62B
Tax rate 22.00%
NOPAT = EBIT × (1 − tax rate) $4.38B
Forecast start-growth basis 5.27%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $4.38B
Add: depreciation & amortisation $2.16B
Less: capital expenditure -$2.71B
Less/(add): working-capital cash-flow movement -$714.00M
Current unlevered FCFF $3.11B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 5.27% $4.61B $2.27B -$2.86B -$751.63M $3.27B $3.13B
2 4.58% $4.82B $2.37B -$2.83B -$786.05M $3.58B $3.12B
3 3.89% $5.01B $2.47B -$2.78B -$816.59M $3.87B $3.09B
4 3.19% $5.17B $2.54B -$2.71B -$842.66M $4.16B $3.03B
5 2.50% $5.30B $2.61B -$2.61B -$863.73M $4.43B $2.95B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.20
Cost of equity 11.33%
Pre-tax cost of debt 4.59%
WACC 9.47%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $65.20B
Implied terminal EV / EBITDA 6.94x
Terminal value as % of enterprise value 73.02%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $15.32B
Present value of terminal value $41.47B
Indicated enterprise value $56.79B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $56.79B
Less: gross interest-bearing debt $19.70B
Add: cash and equivalents $4.10B
Add: affiliate investments $0.00
Less: minority interests $1.47B
Indicated common equity value $39.71B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 677,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price $93.65
DCF indicative value per share $58.65
Indicative value vs. market price -37.37%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:28:24.653129 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -28.76% -19.66%
Adjusted R² 0.34 0.37
Annualised residual volatility 25.35% 24.67%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.33 (8.89) 1.59 (9.53)
Size (SMB) 0.49 (2.41) 0.42 (2.00)
Value (HML) 0.31 (1.81) -0.04 (-0.20)
Profitability (RMW) NM 0.37 (2.08)
Investment (CMA) NM 0.68 (2.22)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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