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1. Company Snapshot

1.a. Company Description

Cairn Homes plc operates as a homebuilder in Ireland.The company develops and sells residential properties.It is also involved in the rental of properties.


The company was incorporated in 2014 and is based in Dublin, Ireland

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1.b. Last Insights on CRN

Cairn Homes' recent performance has been impacted by concerns over global growth and a stronger euro, which have affected the European market. The company's H1 2025 earnings call highlighted strong revenue growth and upgraded full-year guidance, driven by strategic land acquisitions and efficient cost management. However, the pan-European STOXX Europe600 Index has experienced mixed performances, and weak U.S. jobs data has added to economic uncertainties. Amidst these challenges, investors are focusing on small-cap stocks with solid fundamentals, such as Cairn Homes, that can weather economic fluctuations.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.55%)

6. Segments

Houses

Expected Growth: 12%

Cairn Homes plc's 12% growth in houses is driven by increasing demand for affordable housing in Ireland, strategic land acquisition, and efficient construction processes. Additionally, government initiatives such as the 'Rebuilding Ireland' program and Help-to-Buy scheme support the growth. Furthermore, Cairn's focus on first-time buyers and partnerships with state agencies contribute to the segment's expansion.

Apartments

Expected Growth: 11%

Cairn Homes plc's 11% growth in apartments is driven by increasing demand for affordable housing, government incentives for first-time buyers, and a shortage of supply in the Irish market. Additionally, the company's strategic focus on urban regeneration projects and partnerships with local authorities have contributed to its growth.

Residential Site and Other

Expected Growth: 10%

Cairn Homes plc's Residential Site and Other segment growth of 10% is driven by increasing demand for new homes in Ireland, fueled by a growing population and limited supply. Government initiatives to stimulate housing development, such as the 'Rebuilding Ireland' plan, also contribute to growth. Additionally, the company's strategic landbanking and partnerships with local authorities support its expansion.

Property Rental

Expected Growth: 14%

Cairn Homes plc's 14% growth in Property Rental is driven by increasing demand for rental properties in Ireland, fueled by a shortage of affordable housing and rising population. Additionally, the company's strategic focus on acquiring and developing high-quality properties in prime locations, coupled with effective asset management and competitive pricing, contributes to its growth momentum.

7. Detailed Products

Residential Homes

Cairn Homes plc develops and sells residential homes, including apartments, houses, and duplexes, catering to various demographics and budgets.

Apartments

The company offers a range of apartments, from studios to three-bedroom units, in urban and suburban locations, often with amenities like gyms, parks, and community spaces.

Houses

Cairn Homes plc builds and sells a variety of houses, including semi-detached, detached, and terraced homes, often with gardens and outdoor spaces.

Duplexes

The company develops and sells duplexes, which are two-unit homes, often with shared walls, offering a more affordable option for homeownership.

Land Development

Cairn Homes plc acquires, develops, and sells land parcels to other builders, developers, and investors, often with planning permission and infrastructure in place.

8. Cairn Homes plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Cairn Homes plc is medium due to the availability of alternative housing options, such as apartments and rental properties.

Bargaining Power Of Customers

The bargaining power of customers for Cairn Homes plc is low due to the lack of negotiating power of individual homebuyers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Cairn Homes plc is medium due to the dependence on a few large suppliers of building materials.

Threat Of New Entrants

The threat of new entrants for Cairn Homes plc is high due to the relatively low barriers to entry in the homebuilding industry.

Intensity Of Rivalry

The intensity of rivalry for Cairn Homes plc is high due to the competitive nature of the homebuilding industry in Ireland.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.23%
Debt Cost 8.74%
Equity Weight 80.77%
Equity Cost 9.21%
WACC 9.12%
Leverage 23.81%

11. Quality Control: Cairn Homes plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Metrovacesa

A-Score: 6.7/10

Value: 3.8

Growth: 6.7

Quality: 5.3

Yield: 9.4

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Atal

A-Score: 6.5/10

Value: 6.0

Growth: 3.6

Quality: 5.6

Yield: 10.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

Stock-Card
Cairn Homes

A-Score: 6.3/10

Value: 6.4

Growth: 8.4

Quality: 6.4

Yield: 6.9

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
Kaufman & Broad

A-Score: 6.3/10

Value: 7.7

Growth: 4.7

Quality: 6.1

Yield: 10.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Aedas Homes

A-Score: 5.9/10

Value: 4.2

Growth: 9.3

Quality: 4.1

Yield: 10.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Neinor Homes

A-Score: 5.9/10

Value: 3.1

Growth: 3.6

Quality: 6.2

Yield: 10.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.77$

Current Price

1.77$

Potential

-0.00%

Expected Cash-Flows