CRH Plc

CRH PLC maintains a capital structure characterized by significant leverage, with long-term debt of $16.48 billion against total equity of $24.00 billion, resulting in a debt-to-equity ratio of 0.69. The company holds $4.10 billion in cash and equivalents, which is insufficient to cover total liabilities of $32.85 billion, leading to a negative net cash position. Liquidity is assessed as medium risk, supported by a current ratio that is not explicitly provided but implied by the balance sheet composition. The firm generates $5.63 billion in operating cash flow, which comfortably covers capital expenditures of $2.71 billion, indicating positive free cash flow generation despite the debt load.

Profitability metrics show a return on equity of 15.29% and a return on assets of 6.29%, reflecting efficient use of capital in the construction materials sector. The company reports a gross profit of $13.53 billion on revenue of $37.45 billion, yielding a gross margin of approximately 36.1%. Operating income stands at $5.44 billion, translating to an operating margin of roughly 14.5%, while net income is $3.75 billion, resulting in a net margin of approximately 10.0%. These margins are consistent with industry norms for integrated construction materials producers, though specific cohort median comparisons are not available in the provided data to benchmark relative performance.

Revenue concentration and segment details are not explicitly broken down in the available financial snapshot, preventing a detailed analysis of geographic or product-specific exposure. The company’s total revenue of $37.45 billion suggests a diversified global footprint, typical for major construction materials firms, but without specific segment data, the degree of concentration risk cannot be quantified from the current input. The absence of segment-level revenue data limits the ability to assess the impact of regional economic cycles on the company’s overall performance.

Growth trajectory analysis is constrained by the absence of historical period data in the provided input. Without five-year annual or eight-quarter quarterly revenue and net income trends, it is not possible to evaluate the company’s recent growth momentum or cyclicality. The current revenue figure of $37.45 billion serves as a static baseline, but year-over-year or compound annual growth rates cannot be calculated from the available information.

Risk assessment highlights medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The company’s reliance on debt financing is evident in the $16.48 billion long-term debt balance, which requires ongoing interest coverage and refinancing management. The low dilution risk suggests that the company is not currently issuing significant new equity, preserving existing shareholder value. However, the negative net cash position exposes the company to interest rate fluctuations and potential refinancing risks in a rising rate environment.

Recent events include analyst estimates with a mean price target of $143.80 and a median target of $143.50, indicating a positive outlook from the investment community. The mean recommendation of 1.74, with 7 strong buys and 15 buys, reflects strong analyst confidence in the company’s prospects. News event observations indicate a technical failure in data processing ("failed_redrive") rather than a fundamental business event, suggesting no recent negative operational news. The absence of specific filing or transcript observations limits the ability to assess recent management commentary or strategic shifts.

Analysts project 20.1% upside to a mean price target of $142.67, reflecting strong consensus buy recommendations from 26 analysts.

Free cash flow is projected to surge 93.4% year-over-year to $2.21 billion in fiscal 2026, demonstrating strong cash generation.

Revenue is forecast to grow at a 6.4% CAGR from 2022 to 2026, reaching $37.45 billion, showing consistent top-line expansion.

Long-term debt is projected to rise sharply to $18.19 billion in 2026, up from $14.23 billion in 2025, increasing leverage risk.

CRH faces medium liquidity and credit risk flags, suggesting potential vulnerabilities in its financial stability or market conditions.

Debt-to-equity ratio of 0.69 ranks in the bottom quartile of the cohort, indicating higher leverage than most peers.

Cash conversion ratio of 1.53 falls below the cohort median of 1.68, suggesting less efficient conversion of earnings to cash.

Revenue $7.37B, +9,1% YoY; Operating income −450,0% YoY.

• ▍Revenue $7.37B, +9,1% YoY
• ▍Operating income −450,0% YoY
• ▍Net income −87,2% YoY
• ▍Free cash flow +24,2% YoY
• ▍Net margin -2.4%

Revenue $9.42B, +6,2% YoY; Operating income +29,9% YoY.

• ▍Revenue $9.42B, +6,2% YoY
• ▍Operating income +29,9% YoY
• ▍Net income +45,8% YoY
• ▍Free cash flow +193,1% YoY
• ▍Net margin 10.9%

Revenue $11.07B, +5,3% YoY; Operating income +3,1% YoY.

• ▍Revenue $11.07B, +5,3% YoY
• ▍Operating income +3,1% YoY
• ▍Net income +9,2% YoY
• ▍Free cash flow +15,2% YoY
• ▍Net margin 13.6%

Revenue $10.21B, +5,7% YoY; Operating income +3,6% YoY.

• ▍Revenue $10.21B, +5,7% YoY
• ▍Operating income +3,6% YoY
• ▍Net income +1,7% YoY
• ▍Free cash flow +13,2% YoY
• ▍Net margin 12.9%

Revenue $6.76B; Operating income -$8.0M.

• ▍Revenue $6.76B
• ▍Operating income -$8.0M
• ▍Net margin -1.4%

Revenue $8.87B; Operating income $1.11B.

• ▍Revenue $8.87B
• ▍Operating income $1.11B
• ▍Net margin 7.9%

Revenue $10.52B; Operating income $2.02B.

• ▍Revenue $10.52B
• ▍Operating income $2.02B
• ▍Net margin 13.1%

Revenue $9.65B; Operating income $1.85B.

• ▍Revenue $9.65B
• ▍Operating income $1.85B
• ▍Net margin 13.4%

Revenue $37.45B, +5,3% YoY; Operating income +5,1% YoY.

• ▍Revenue $37.45B, +5,3% YoY
• ▍Operating income +5,1% YoY
• ▍Net income +7,5% YoY
• ▍Free cash flow +93,4% YoY
• ▍Net margin 10.0%

Revenue $35.57B, +1,8% YoY; Operating income +23,6% YoY.

• ▍Revenue $35.57B, +1,8% YoY
• ▍Operating income +23,6% YoY
• ▍Net income +9,9% YoY
• ▍Free cash flow −41,8% YoY
• ▍Net margin 9.8%

Revenue $34.95B, +6,8% YoY; Operating income +12,8% YoY.

• ▍Revenue $34.95B, +6,8% YoY
• ▍Operating income +12,8% YoY
• ▍Net income −17,7% YoY
• ▍Free cash flow +9,7% YoY
• ▍Net margin 9.1%

Revenue $32.72B, +12,0% YoY; Operating income +11,5% YoY.

• ▍Revenue $32.72B, +12,0% YoY
• ▍Operating income +11,5% YoY
• ▍Net income +46,8% YoY
• ▍Free cash flow +21,8% YoY
• ▍Net margin 11.8%