CRH PLC Net Income vs. Return On Equity

CRH Stock  USD 98.84  1.25  1.25%   
Based on the measurements of profitability obtained from CRH PLC's financial statements, CRH PLC ADR may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess CRH PLC's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1991-03-31
Previous Quarter
116 M
Current Value
1.3 B
Quarterly Volatility
489.5 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, CRH PLC's Days Of Sales Outstanding is increasing as compared to previous years. The CRH PLC's current Price Sales Ratio is estimated to increase to 1.50, while Sales General And Administrative To Revenue is projected to decrease to 0.15. As of now, CRH PLC's Income Tax Expense is increasing as compared to previous years. The CRH PLC's current Net Income Applicable To Common Shares is estimated to increase to about 4.6 B, while Accumulated Other Comprehensive Income is projected to decrease to (646.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.370.3423
Significantly Up
Slightly volatile
Operating Profit Margin0.0650.1198
Way Down
Slightly volatile
For CRH PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CRH PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CRH PLC ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CRH PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CRH PLC ADR over time as well as its relative position and ranking within its peers.
  
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Is Construction Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CRH PLC. If investors know CRH will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CRH PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.094
Dividend Share
2.13
Earnings Share
4.99
Revenue Per Share
51.375
Quarterly Revenue Growth
0.038
The market value of CRH PLC ADR is measured differently than its book value, which is the value of CRH that is recorded on the company's balance sheet. Investors also form their own opinion of CRH PLC's value that differs from its market value or its book value, called intrinsic value, which is CRH PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CRH PLC's market value can be influenced by many factors that don't directly affect CRH PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CRH PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if CRH PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CRH PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

CRH PLC ADR Return On Equity vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CRH PLC's current stock value. Our valuation model uses many indicators to compare CRH PLC value to that of its competitors to determine the firm's financial worth.
CRH PLC ADR is number one stock in net income category among its peers. It is rated fifth in return on equity category among its peers . The ratio of Net Income to Return On Equity for CRH PLC ADR is about  19,832,149,774 . As of now, CRH PLC's Net Income is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CRH PLC's earnings, one of the primary drivers of an investment's value.

CRH Return On Equity vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

CRH PLC

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
3.07 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

CRH PLC

Return On Equity

 = 

Net Income

Total Equity

 = 
0.15
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

CRH Return On Equity Comparison

CRH PLC is currently under evaluation in return on equity category among its peers.

CRH PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CRH PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CRH PLC will eventually generate negative long term returns. The profitability progress is the general direction of CRH PLC's change in net profit over the period of time. It can combine multiple indicators of CRH PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-616 M-646.8 M
Operating Income4.2 B4.4 B
Income Before TaxB4.2 B
Total Other Income Expense Net-172 M-163.4 M
Net Income3.1 B3.2 B
Income Tax Expense925 M971.2 M
Net Income Applicable To Common Shares4.4 B4.6 B
Net Income From Continuing Ops3.1 B1.7 B
Interest Income206 M209.1 M
Net Interest Income-170 M-178.5 M
Change To Netincome-1 B-973.8 M
Net Income Per Share 4.39  4.61 
Income Quality 1.63  1.14 
Net Income Per E B T 0.79  0.64 

CRH Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CRH PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CRH PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CRH PLC's important profitability drivers and their relationship over time.

Use CRH PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CRH PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CRH PLC will appreciate offsetting losses from the drop in the long position's value.

CRH PLC Pair Trading

CRH PLC ADR Pair Trading Analysis

The ability to find closely correlated positions to CRH PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CRH PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CRH PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CRH PLC ADR to buy it.
The correlation of CRH PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CRH PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CRH PLC ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CRH PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your CRH PLC position

In addition to having CRH PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Aluminum Thematic Idea Now

Aluminum
Aluminum Theme
Companies involved in production of aluminum. The Aluminum theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Aluminum Theme or any other thematic opportunities.
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When determining whether CRH PLC ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CRH PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Crh Plc Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Crh Plc Adr Stock:
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You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
To fully project CRH PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CRH PLC ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CRH PLC's income statement, its balance sheet, and the statement of cash flows.
Potential CRH PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CRH PLC investors may work on each financial statement separately, they are all related. The changes in CRH PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CRH PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.