# Cairn Homes plc (CRN.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Construction & Engineering. Price 240p, market value 1.5 billionp.

## Valuation
- **P/E (trailing): 10.9×** (5-yr avg 1023.7×, 3-yr avg 938.5×). Cairn Homes plc trades at 10.9× trailing earnings, well below its own five-year average of 1023.7×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 10.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.65**. A PEG of 0.65 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.0×**. Enterprise value is 6.0× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 10.7%** (5-yr avg 0.1%). Free cash flow equals 10.7% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 9.2%**. The inverse of the P/E: 9.2% of the price is earned each year.

## Profitability
- **Gross margin: 21.9%**. Cairn Homes plc keeps 21.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 17.7%**. 17.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 14.0%**. 14.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.9%**. 15.9% on shareholders' equity is solid.
- **Return on invested capital: 27.0%**. Return on all capital, debt included, is 27.0%: comfortably above what that capital costs.
- **Return on assets: 18.9%**. Each dollar of assets produces 18.9% of profit.

## Growth
- **Revenue growth (1 yr): 9.8%** (3-yr 14.8%/yr, 5-yr 29.4%/yr). Revenue grew 9.8% over the last year, against 29.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 16.7%** (3-yr 20.5%/yr, 5-yr 65.7%/yr). Earnings per share rose 16.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -14.4%/yr**. Free cash flow has compounded at -14.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.28**. Debt is 0.28 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.5×**. It would take 0.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 10.7×**. Operating profit covers interest 10.7× over, a safe margin.
- **Current ratio: 5.12** (quick 0.67). Current assets cover the next year's liabilities 5.12 times.
- **Altman Z-score: 4.92**. A Z-score of 4.92 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.75%** (0p per share, trailing). Cairn Homes plc yields 3.75%, an income-level yield.
- **Payout ratio: 40%** (52% of free cash flow). 40% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 8.5%**. Dividends plus net buybacks return 8.5% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (2 analysts). 2 analysts cover Cairn Homes plc; the consensus is strong_buy, with an average price target of 239p (-0% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 29.7%** (YTD 38.5%, 3-mo 27.2%). The shares are up 29.7% over twelve months including dividends.
- **From 52-week high: -3.6%** (49.1% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 77**. An RSI of 77 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.93** (volatility 29%). Beta of 0.93 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CRN.L · Page: https://foliofundamentals.com/stocks/crn.l

Not investment advice.