Is CRH a high-quality business?

AlphaMadera's AlphaQuality grade scores CRH plc on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CRH compares to a Buffett-style quality bar.

What is CRH plc's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CRH based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CRH a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CRH - CRH plc

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $135.60 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B 70.1 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C+ 57.0

5yr Avg ROIC 7.5% 48/100
Operating Margin Trend +0.79 pp/yr 79/100

Capital Efficiency

Weight: 15%

A- 81.9

5yr Avg ROE 13.2% 74/100
5yr Share-Count CAGR -3.7% 97/100

Growth Quality

Weight: 10%

A- 85.9

5yr Revenue CAGR 9.8% 80/100
5yr EPS CAGR 14.0% 86/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

B 71.6

5yr FCF Margin 8.0% 62/100
5yr FCF/NI Conversion 0.83x 83/100

Balance Sheet

Weight: 25%

B 72.6

Net Debt / EBITDA 2.09x 68/100
Interest Coverage (EBIT/Int) 6.57x 71/100
Altman Z-Score 3.14 82/100

Stability

Weight: 20%

C+ 58.6

EPS Volatility (σ/μ) 0.59 23/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

7 of 8 gurus held; 1 added; 6 trimmed; 1 full exit.

Holders: 7 -1
Avg Δ position: -25.4%
New buys: 0
Full exits: 1

Klarman sold -100%
Dalio decreased -94%
Greenblatt increased +82%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.