Report
Kristoffer Inton
EUR 850.00 For Business Accounts Only

Morningstar | CRH Sells European Distribution Business for Good Price; Slight Increase to FVE. See Updated Analyst Note from 16 Jul 2019

On July 16, CRH announced the sale of its European distribution business to Blackstone for EUR 1.6 billion in cash. After accounting for year-to-date portfolio changes, the European distribution business generated EUR 3.7 billion in sales and EUR 155 million in EBITDA.

We think CRH received slightly above fair value for the asset sale, slightly offset by a stronger U.S. dollar since our last update. Having updated our model to reflect these changes, we’ve raised our fair value estimates to $36 and GBX 2,900 per share, respectively, up from $35.50 and GBX 2,700, respectively. Our no-moat rating remains unchanged, although the company continues to pivot away from businesses that do not hold a competitive advantage. At current prices, shares look fairly valued on a risk-adjusted basis.
Underlying
CRH PLC ADS

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Kristoffer Inton

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