Ibstock, Balfour Beatty & CRH: 3 construction stocks to buy now

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Ibstock, Balfour Beatty & CRH: 3 construction stocks to buy now

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 Ibstock, Balfour Beatty & CRH: 3 construction stocks to buy now
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HIGHLIGHTS

  • Ibstock recorded revenue of £202 million in H1 2021 compared to £151 million in H1 2020, representing a year-on-year increase of 54%.
  • Balfour Beatty announced a dividend of 3.0 pence per share for the period H1 2021.
  • CRH’s profit after tax was $0.8 billion in H1 2021, representing a 101% year-on-year increase compared to $0.4 billion in H1 2020. 

The output growth in the UK’s construction industry gathered pace in October despite the supply chain crisis. According to IHS Markit and CIPS, the sectorial recovery accelerated from the eight-month low in September due to the house building category demonstrating tremendous strength and surpassing growth in the commercial work category.

The construction PMI index reached 54.6 in October, representing an increase from 52.6 in September. However, new orders remained unchanged from September figures. The improvement in the residential work category was also the strongest for three months.

In the UK, commercial construction also expanded faster than in September due to the relaxation of COVID-19 pandemic related restrictions. However, the number of construction companies that reported prolonged delivery times for supplies decreased from 63% in September.

Let us discuss the investment prospect in three dividend-paying construction stocks – Ibstock, Balfour Beatty, and CRH.

Ibstock, Balfour Beatty & CRH: Dividend and market cap details

(Data source: Refinitiv and company release)

 

Ibstock Plc (LON: IBST)

Ibstock is an FTSE 250 listed manufacturer and supplier of clay bricks and concrete products. Yesterday, Ibstock announced the launch of a new business unit - Ibstock Futures with an initial investment of £50 million to create the country’s first-ever automated brick-slip systems production facility in Nostell, West Yorkshire.

Ibstock recorded revenue of £202 million in H1 2021 compared to £151 million in H1 2020, representing a year-on-year increase of 54%. The company’s profit before taxation increased to £39 million in H1 2021 compared to a loss before tax of £52 million in H1 2020.

Ibstock’s board announced an interim dividend of 2.5 pence per share for H1 2021.

The shares of Ibstock are currently trading at GBX 207.20, up by 0.39% at 8:08 AM BST on Friday, 5 November 2021. The shares of the company returned 32.21% in the last one year to shareholders, and the market cap of the company stands at £845.48 million.

Balfour Beatty Plc (LON: BBY)

Balfour Beatty is an FTSE 250 listed infrastructure group that offers infrastructure investments, construction services, and related support services. Recently, Balfour Beatty announced the sale of its US Track Solutions operations to Rhomberg Sersa Rail Group (RSRG), for $7.25 million. Balfour Beatty, in collaboration with Pegasus Link Constructors, completed construction of the new 2.3-mile collector-distributor lanes that offer motorists with easier access to Dallas North Tollway and Woodall Rodgers Freeway.

Balfour Beatty reported an underlying profit from operations of £60 million in H1 2021 compared to a loss of £14 million in H1 2020. Its group order book for the period was £16.1 billion compared to £16.4 billion in the previous year. It recorded a revenue of £4,154 million in H1 2021, up from £4,115 million in H1 2020.

Balfour Beatty announced a dividend of 3.0 pence per share for the period H1 2021.

The shares of Balfour Beatty are currently trading at GBX 248.20, up by 0.49% at 8:09 AM BST on Friday, 5 November 2021. The shares of the company returned 15.44% in the last one year to shareholders, and the market cap of the company stands at £1,579.33 million.

CRH Plc (LON: CRH)

CRH is an FTSE 100 listed building materials company. CRH recorded a sales revenue of $14.0 billion in H1 2021 and an EBITDA of $2.0 billion. Its profit after tax was $0.8 billion in H1 2021, representing a 101% year-on-year increase compared to $0.4 billion in H1 2020. 

CRH’s board announced an interim dividend of 23.0 cents per share, an increase of 4.5% year-on-year.

The shares of CRH are currently trading at GBX 3,667.00, up by 0.03% at 8:10 AM BST on Friday, 5 November 2021. The shares of the company returned 29.91% in the last one year to shareholders, and the market cap of the company stands at £28,384.58 million.

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