CRH Discussion Board http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion http://www.iii.co.uk/icons/logos/uk_logo.gif http://www.iii.co.uk tag:iii.co.uk,2003:tst.9671793 Price: 1435c Rating: Outperform Issued: 23/05/12 Previous: Neutral Issued: 12/01/12
Upgrading to 'outperform', reflecting balance sheet and cash flow strength; limited
earnings downside NEW REPORT
Barry Dixon
CRH's share price has fallen by almost 10% year-to-date and has underperformed the sector and its main peers. We believe it is now attractively valued, particularly given the strength of its balance sheet and cash flow. By year-end, we expect CRH to have net debt of less than €2.7bn. This gives it one of the strongest balance sheets in a sector in which many peers still have to dispose of assets. We estimate that €1.5bn of acquisition spend could add 10% to group earnings on a full-year basis and 50bps to group returns. CRH is the only company in the sector to have maintained its dividend through the downturn and the stock now yields close to 4.5%. European construction markets remain weak. This could result in 10% downside to our 2012 forecasts, implying a P/E of 17.3 times. However, US construction markets are continuing to improve, which could provide 5-10% upside to forecasts.
Based on our mid-cycle earnings analysis as well as the group's potential to enhance returns by using its strong balance sheet and cash flow, we believe a price target of 1650c is achievable. We are therefore upgrading our rating to 'outperform' from
'neutral'. By Boscod ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9671793&action=detail Wed, 23 May 2012 08:14:00 GMT Boscod tag:iii.co.uk,2003:tst.9620002 http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9620002&action=detail Wed, 09 May 2012 06:56:00 GMT commercia tag:iii.co.uk,2003:tst.9369194 Thursday, March 01, 2012
http://bit.ly/x33vDy By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9369194&action=detail Wed, 29 Feb 2012 21:18:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9369037 4:16 pm
http://bit.ly/wu7lXs By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9369037&action=detail Wed, 29 Feb 2012 20:41:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9366366 11:35 am by Giles Gwinnett
http://bit.ly/A7Fveo By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9366366&action=detail Wed, 29 Feb 2012 10:46:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9361685 28 February 2012
RESULT: Costs are down and US markets are improving, but European markets remain lacklustre overall.
http://bit.ly/ArRrb8 By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9361685&action=detail Tue, 28 Feb 2012 13:53:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9359863 (CRH ID)
Davy Research
FY results ahead of forecasts due to weather; outlook mildly positive; slight upgrade to forecasts likely
28 February 2012
Barry Dixon
http://bit.ly/wEKboJ By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9359863&action=detail Tue, 28 Feb 2012 09:09:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9323957 TOBY GREEN TUESDAY 21 FEBRUARY 2012
http://ind.pn/wbfCfk By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9323957&action=detail Tue, 21 Feb 2012 04:06:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9311890 February 17, 2012 8:47 pm
By Bryce Elder
http://on.ft.com/wdZIlH By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9311890&action=detail Fri, 17 Feb 2012 21:23:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9226651
Just posted Part III of The Great Irish Share Valuation Project on my blog. I'm setting a Fair Value Price Target for every listed Irish company. So far I've valued about 3 dozen companies, including CRH:

http://wexboy.wordpress.com/2012/01/30/the-great-irish-share-valuation-project-iii/

I hope you'll take a look (plse don't hesitate to comment/email me), and perhaps become a regular reader.

Cheers,

Wexboy By Wexboy ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9226651&action=detail Mon, 30 Jan 2012 15:29:00 GMT Wexboy tag:iii.co.uk,2003:tst.9122180 January 4, 2012 8:40 pm
By Arash Massoudi
http://on.ft.com/zAIbD5 By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9122180&action=detail Thu, 05 Jan 2012 05:26:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.9065235 Aggregates maker CRH lifted by consolidation prospect
By Bryce Elder and Neil Hume
http://on.ft.com/vGLucV

The potential merger of CRH ’s two biggest competitors helped put it among the risers yesterday as the London market rebounded.

The Irish aggregates maker, which last week won promotion to the FTSE 100, rose in the wake of Monday’s hostile offer for Vulcan Materials from US peer Martin Marietta.

“Marietta management would not be taking such a significant step without having a good degree of confidence that its end markets had at worst stabilised,” said Liberum Capital.
Analysts also noted a price tag including debt of $7.4bn – equivalent to about 25 times Vulcan’s operating earnings, compared with CRH, which trades at roughly 8 times earnings. The high price meant CRH was very unlikely to counterbid, but would be likely to pick up disposals required by the enlarged group, they said.
“The elevated valuations at which US peers trade could again raise the issue of whether or not CRH should contemplate splitting its US operations and listing them separately,” NCB Stockbrokers said. CRH has traditionally opposed such a split.
CRH rose 2.5 per cent to £11.54 ahead of its addition to the FTSE 100 on Monday.
By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=9065235&action=detail Tue, 13 Dec 2011 20:25:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8974144
On Friday, President Obama signed into law a spending package including appropriations for Fiscal Year 2012. The package reduces the highway obligation limit to $39bn from last year’s level of $41.1bn. While this represents a reduction of 5% yoy, it is a significantly better outturn than the Republican Party’s original plans for a cut to $27bn. Details of how to fund such a level of spending are yet to be outlined.
Reduced funding for infrastructure is never an ideal situation, however the $39bn funding level as opposed to the Republicans original target, highlights the political sensitivities that come with attempting to reduce funding for labour intensive infrastructure programmes in the current economic climate. With regard to CRH, US infrastructure represents c.25% of Group EBITDA. By Boscod ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=8974144&action=detail Mon, 21 Nov 2011 08:06:00 GMT Boscod tag:iii.co.uk,2003:tst.8642143 http://www.davy.ie/LR?id=1465


Davy Research Report
CRH
(CRH ID)
Arbitration court rules in favour of Semapa in Secil case; CRH likely to sell its 49% stake for €574.3m, or over 9 times historic EBITDA
11 August 2011
Barry Dixon
Closing Price: 1145c Rating: Neutral 13/06/11 Previous: Outperform 30/06/09
FACTS: The International Chamber of Commerce (ICC) has ruled that while both Semapa and CRH have breached the rules of their joint venture agreement regarding the Portuguese cement business, Secil, Semapa has the right to exercise its option to buy CRH's 49% stake for €574.3m.

ANALYSIS: CRH acquired a 49% stake in the Portuguese cement business, Secil, from Semapa in 2004 for a total consideration of €429m including debt. The expectation at the time was that CRH would increase its stake over time to 100%. In 2009 however, both parties entered arbitration, claiming that the other had breached the terms of the JV agreement. Semapa wanted to exercise its option to buy back CRH's 49% stake. The ICC has now ruled in favour of Semapa and Semapa has the right to exercise this option over the next 180 days.

However, the terms are interesting and favourable to CRH. The ICC has determined a price of €574.3m for CRH's stake, based on independent valuation. Based on Secil's 2010 performance, this implies a multiple of over 9 times EBITDA. Assuming that the performance of this business deteriorated further in 2011, the multiple on current year's earnings may be even higher.

The question now is whether, in the current environment, Semapa will wish to complete the deal at such a high price. With a current net debt/EBITDA of 2.3 times, it certainly has the balance sheet capacity to complete the deal which would take pro-forma net debt/EBITDA to just over 3 times.

While it is unclear from the statement, it is likely that CRH would be able to force through the sale at the agreed price.

DAVY VIEW: While it is always disappointing to lose a case like this, the sale of a cement business in a peripheral European country whose construction sector is likely to be depressed for a number of years at over 9 times EBITDA is a considerable comfort. The deal will further strengthen CRH's balance sheet, taking pro-forma net debt at year-end to just over €2bn, implying pro-forma net debt/EBITDA (full-year impact) of just over 1.2 times. This gives CRH the strongest balance sheet in the sector which hopefully it will use to replace the Secil business. By SpikeyDT ]]> http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=8642143&action=detail Thu, 11 Aug 2011 08:38:00 GMT SpikeyDT tag:iii.co.uk,2003:tst.8638095 http://www.iii.co.uk/investment/detail?code=cotn:CRH.L&display=discussion&id=8638095&action=detail Wed, 10 Aug 2011 10:25:00 GMT gubu