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CRH PLC ADR - Stock Quote CRH

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Morningstar's CRH PLC ADR Stock Analysis

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CRH’s Strong Trading Update Helps Ease Inflation Concerns on Profitability; Shares Are Undervalued

Matthew Donen, CFA Equity Analyst

Analyst Note

| Matthew Donen, CFA |

Narrow-moat CRH is successfully navigating a challenging macroeconomic environment for manufacturers of building materials. The group announced first-quarter sales growth of 15% and growth in EBITDA margin in a brief trading update. Management expects the positive momentum to continue and has guided for sales and margin growth for the first half of 2022. We believe today’s strong update will help alleviate concerns over the group’s ability to offset surging energy prices since the war in Ukraine. It also reinforces our view that CRH is the most defensive of our European building manufacturers, due to its significant exposure to infrastructure spending in the United States, diversified product portfolio and low exposure to energy-intensive cement production. We believe the current share price is undervalued relative to our GBX 3,550 fair value estimate, presenting a buying opportunity for investors.

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CRH PLC ADR's Company Profile

Business Description

CRH is a global manufacturer of a range of building products used in construction projects, operating via a vertically integrated business model. The past decade has seen CRH transform into a leading building materials business, with increasing exposure to upstream building activities such as aggregates and cement. CRH’s geographic footprint is mostly across developed markets. North America is CRH’s largest market and accounts for 59% of sales. The company is the largest producer of aggregates and asphalt in the U.S.

Contact
Stonemason’s Way, Rathfarnham
Dublin, D16 KH51, Ireland
T +353 14041000
Sector Basic Materials
Industry Building Materials
Most Recent Earnings Jun 30, 2008
Fiscal Year End Dec 31, 2022
Stock Type
Employees 77,400