$CRH PLC (CRH.US)$ CRH cementIt is an Irish company listed i...

CRH cementIt is an Irish company listed in 2006. Its main markets are in the US, Europe and the UK, and the current price is 35. Gross profit margin has basically fluctuated around 34% over the past 5 years. The company has maintained dividends since its listing, with a dividend ratio of 3.3% TTM.

When looking at financial reports, note that the company's financial reports before 2020 are all in Euros.

There has been a 25% increase in revenue fluctuations in the past 5 years. In addition to the 22.8% decline in 2020, operating profit increased for 4 years. The 5-year average growth rate was 15.5%. Net profit fell sharply by 40.5% in 2019, and also decreased by 35% in 2020.

Looking at the original financial report, it can be seen that in 2018, there was 1.39 billion yuan in profit from the cessation of operations. Excluding this part of the impact, net profit also increased in 2019. 2020 was due to a decline in operating profit, while the decline in operating profit was caused by a sharp increase in expenses in the face of a slight decline in revenue.

In 2021, revenue, operating profit, and net profit increased by 12.3%, 75%, and 129%, respectively. The 2022/Q1 website showed a 13% increase in revenue.

After rising from 53% to 59% over the past 5 years, the balance ratio fell back to 53%. Accounts receivable and inventory account for 15% and 12% of revenue, respectively, which is not very high. Long-term loans of 9.9 billion yuan, accounting for 50% of net assets, and interest expenses account for 8.7% of operating profit. The burden is OK.

In the past 5 years, with the exception of 2017, operating cash flow has greatly exceeded investment cash flow. The surplus is good, with a current ratio of 1.85, which is relatively safe.

Currently, the company's price-earnings ratio is 10.5 and the net price-earnings ratio is 1.3. Considering last year's high base, the pressure on this year's performance is not small. The average net profit over the past 5 years was 2.1 billion, and the corresponding price-earnings ratio was 12.8. If you look at growth stocks, you can choose carefully now; if you look at cyclical stocks, you can wait a little longer.