We Think CRH (NYSE:CRH) Can Stay On Top Of Its Debt
We Think CRH (NYSE:CRH) Can Stay On Top Of Its Debt
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We can see that CRH plc (NYSE:CRH) does use debt in its business. But is this debt a concern to shareholders?
傳奇基金經理李露(由查理·芒格支持)曾經說過:「最大的投資風險不是價格的波動,而是你是否會遭受永久的資本損失。」因此,很明顯,當你考慮任何給定股票的風險時,你需要考慮債務,因爲過多的債務會使公司陷入困境。我們可以看到,CRH plc(紐約證券交易所代碼:CRH)確實在其業務中使用了債務。但是這筆債務是股東關心的問題嗎?
What Risk Does Debt Bring?
債務會帶來什麼風險?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. If things get really bad, the lenders can take control of the business. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
一般而言,只有當公司無法通過籌集資金或用自己的現金流輕鬆還清債務時,債務才會成爲真正的問題。如果情況變得非常糟糕,貸款人可以控制業務。儘管這種情況並不常見,但我們經常會看到負債公司永久稀釋股東,因爲貸款人迫使他們以不良价格籌集資金。但是,通過取代稀釋,債務可以成爲需要資本以高回報率投資增長的企業的極好工具。在考慮企業使用多少債務時,要做的第一件事是同時考慮其現金和債務。
What Is CRH's Net Debt?
什麼是CRH的淨負債?
The image below, which you can click on for greater detail, shows that at June 2024 CRH had debt of US$13.1b, up from US$9.87b in one year. However, because it has a cash reserve of US$3.07b, its net debt is less, at about US$10.1b.
您可以點擊下圖查看更多詳情,該圖片顯示,截至2024年6月,CRH的債務爲131億美元,高於一年的98.7億美元。但是,由於其現金儲備爲30.7億美元,其淨負債較少,約爲101億美元。
![1724853992703](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240828/43012430-0-bf70f7bb90bf2ab06377a0b1426cd6e0.webp/bigjpg)
A Look At CRH's Liabilities
看看 CRH 的負債
We can see from the most recent balance sheet that CRH had liabilities of US$10.5b falling due within a year, and liabilities of US$16.1b due beyond that. Offsetting this, it had US$3.07b in cash and US$5.89b in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$17.7b.
我們可以從最新的資產負債表中看出,CRH的負債爲105億美元,一年後到期的負債爲161億美元。與此相抵消的是,它有30.7億美元的現金和58.9億美元的應收賬款將在12個月內到期。因此,其負債超過其現金和(短期)應收賬款總額177億美元。
While this might seem like a lot, it is not so bad since CRH has a huge market capitalization of US$61.4b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
儘管這可能看起來很多,但還不錯,因爲CRH擁有614億美元的巨額市值,因此如果需要,它可能會通過籌集資金來加強其資產負債表。但很明顯,我們一定要仔細研究它能否在不稀釋的情況下管理債務。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
爲了擴大公司相對於收益的負債規模,我們計算其淨負債除以利息、稅項、折舊和攤銷前的收益(EBITDA),將其利息和稅前收益(EBIT)除以利息支出(利息保障)。因此,我們將債務與收益的關係考慮在內,包括和不包括折舊和攤銷費用。
We'd say that CRH's moderate net debt to EBITDA ratio ( being 1.6), indicates prudence when it comes to debt. And its strong interest cover of 15.3 times, makes us even more comfortable. And we also note warmly that CRH grew its EBIT by 16% last year, making its debt load easier to handle. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if CRH can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
我們可以說,CRH的淨負債與息稅折舊攤銷前利潤的比率適中(爲1.6),這表明在債務方面謹慎行事。而且其15.3倍的強大利息覆蓋率使我們更加自在。我們還熱烈地注意到,CRH去年的息稅前利潤增長了16%,使其債務負擔更易於處理。資產負債表顯然是分析債務時需要關注的領域。但最終,該業務的未來盈利能力將決定CRH能否隨着時間的推移加強其資產負債表。因此,如果你想看看專業人士的想法,你可能會發現這份關於分析師利潤預測的免費報告很有趣。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we always check how much of that EBIT is translated into free cash flow. Over the most recent three years, CRH recorded free cash flow worth 55% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.
最後,企業需要自由現金流來償還債務;會計利潤根本無法減少債務。因此,我們總是檢查該息稅前利潤中有多少轉化爲自由現金流。在最近三年中,鑑於自由現金流不包括利息和稅收,CRH記錄的自由現金流佔其息稅前利潤的55%,這幾乎是正常的。這種冷硬現金意味着它可以在需要時減少債務。
Our View
我們的觀點
CRH's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. And the good news does not stop there, as its EBIT growth rate also supports that impression! Looking at all the aforementioned factors together, it strikes us that CRH can handle its debt fairly comfortably. Of course, while this leverage can enhance returns on equity, it does bring more risk, so it's worth keeping an eye on this one. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For instance, we've identified 2 warning signs for CRH that you should be aware of.
CRH的利息保障表明,它可以像克里斯蒂亞諾·羅納爾多在對陣14歲以下的守門員的比賽中進球一樣輕鬆地處理債務。好消息不止於此,因爲其息稅前利潤增長率也支持這種印象!綜合上述所有因素,令我們震驚的是,CRH能夠相當輕鬆地處理債務。當然,儘管這種槓桿可以提高股本回報率,但它確實帶來了更多的風險,因此值得關注。資產負債表顯然是分析債務時需要關注的領域。但是,並非所有的投資風險都存在於資產負債表中,遠非如此。例如,我們已經確定了兩個你應該注意的CRH警告信號。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
畢竟,如果你對一家資產負債表堅如磐石的快速成長型公司更感興趣,那麼請立即查看我們的淨現金增長股票清單。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。