CRH Public Limited Company

Based on a holistic review of CRH's technical, fundamental, valuation, and risk profile, a BUY recommendation is warranted.

Technical Outlook: The stock exhibits strong positive momentum, having rebounded sharply to trade near its 52-week high. While the recent pace of gains has moderated, suggesting it may be approaching overbought levels, the overall trend remains constructive.

Fundamental & Valuation Strength: CRH is supported by solid revenue growth, healthy profitability, and a conservative debt structure. The valuation is particularly compelling, as the low PEG ratio of 0.39 indicates the stock is significantly undervalued relative to its expected earnings growth, despite a somewhat elevated trailing P/E.

Risk Consideration & Final View: While its higher beta implies it will be more volatile than the market, the company's strong financial health and attractive growth-adjusted valuation outweigh these concerns. For investors seeking exposure to a fundamentally sound company with strong growth prospects in the materials sector, CRH presents a compelling opportunity at current levels.

*Note: This is not investment advice, for reference only.*

RockFlow Model Forecast: Three Scenarios for 2026

Based on a holistic review, the 12-month outlook for CRH (CRH) is positive.

Key Catalysts: The primary catalyst is the significant infrastructure spending in its core North American market, which is expected to drive strong revenue and earnings growth. The company's compelling growth-adjusted valuation (low PEG ratio) and solid financial health provide a strong foundation for upward price movement.

Potential Risks: The main risks are its higher market beta, which could lead to amplified volatility during any broad market downturn, and the potential for economic softening to impact construction activity and material demand.

Price Outlook: While a specific analyst target is not provided, the combination of strong fundamentals, positive momentum, and a deeply undervalued PEG ratio suggests a high probability of the stock trending higher from its current level over the next 12 months.

*Disclaimer: This analysis is for informational purposes only and does not constitute investment advice.*

Wall Street Consensus

Most Wall Street analysts are optimistic about CRH Public Limited Company's 12-month outlook, with consensus target around $125.49, indicating expected upside potential.

Overall, CRH has investment potential but also faces challenges. Here are key factors to weigh before investing.

CRH has demonstrated strong positive momentum over the recent quarter, significantly outperforming the broader market. The stock has rebounded impressively from its yearly low to trade near its 52-week high.

Over the past three months, CRH has delivered substantial gains of 9.55%, significantly outperforming the market by over 9%. The more modest 1.02% gain in the past month suggests the pace of appreciation may be moderating after this strong run.

Currently trading at $124.23, CRH sits in the upper quartile of its 52-week range, approximately 5% below its high of $131.55. This positioning, combined with its high beta, suggests the stock is approaching overbought territory after its significant rally from the $76.75 low.

Revenue & Profitability CRH demonstrates solid revenue growth with quarterly revenue rising from $8.7B to $11.1B, indicating strong demand. Profitability metrics remain healthy with a 38.9% gross profit margin and 13.6% net profit margin, though the slight decline from Q2's 39.4% gross margin warrants monitoring. The company maintains robust operational efficiency with an 18.8% operating income ratio.

Financial Health The company maintains a conservative debt structure with a 35.3% debt ratio and manageable long-term debt capitalization of 38.7%. Cash flow coverage appears adequate with a 1.45 current ratio and moderate cash flow to debt ratio of 0.12, though interest coverage at 9.96x provides comfortable servicing capacity for current obligations.

Operational Efficiency CRH shows moderate operational efficiency with a 7.6% return on equity and 22.2% asset turnover. The working capital management appears effective with a 69.5-day cash conversion cycle, supported by reasonable inventory turnover of 1.58x. Fixed asset utilization appears modest at 0.51x turnover, suggesting potential for improved capital efficiency.

Based on CRH's valuation metrics, the stock appears reasonably valued with strong growth prospects. The trailing PE of 23.55 is elevated, but the forward PE of 13.4 suggests significant earnings growth expectations. The PEG ratio of 0.39 indicates substantial undervaluation relative to growth prospects, as a PEG below 1 typically suggests an attractive valuation. However, the elevated EV/EBITDA of 33.25 raises some concerns about current enterprise value relative to operating performance.

Without industry average data for direct comparison, a comprehensive peer analysis isn't possible. The absence of benchmark metrics prevents definitive conclusions about CRH's relative valuation position within its sector. Investors should seek industry-specific comparative data to better assess whether CRH's valuation multiples represent a premium or discount to sector peers.

Volatility Risk: CRH demonstrates moderate volatility risk, with a beta of 1.182 indicating it typically moves 18% more than the broader market. This elevated sensitivity is corroborated by a maximum one-year drawdown of -27.29%, highlighting potential for significant peak-to-trough declines during market stress.

Other Risks: While CRH appears to have negligible short interest, suggesting minimal speculative pressure or negative sentiment, other liquidity and operational risks remain. The lack of short interest data points should be considered within the context of the company's size, trading volume, and exposure to construction and materials sector cycles.