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Akzo Nobel
(OTC:AKZOY)
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Rating:64Neutral
Price Target:
$26.00
▲(10.31% Upside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by stable-to-good financial performance (improving profitability and solid cash generation) but held back by elevated leverage and some volatility in growth/FCF. Valuation is supportive (mid-teens P/E with a ~3.5% dividend). The latest earnings call was broadly positive on guidance, margin progress, and cost-savings/merger synergy potential, while technical indicators remain neutral-to-soft, limiting near-term momentum.
Positive Factors
Margin expansion and improving profitability
Consistent quarter-on-quarter margin gains reflect durable pricing discipline and structural cost actions (industrial excellence program). Higher gross and EBITDA margins improve earnings resilience versus cyclical revenue swings and support sustained cash generation and reinvestment capacity.
Negative Factors
Elevated leverage
A more levered capital structure increases sensitivity to earnings shocks and refinancing risk, limiting flexibility for M&A or counter-cyclical investment. Elevated leverage can pressure credit metrics if margins or cash flow weaken, making deleveraging a near-term structural priority.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and improving profitability
Consistent quarter-on-quarter margin gains reflect durable pricing discipline and structural cost actions (industrial excellence program). Higher gross and EBITDA margins improve earnings resilience versus cyclical revenue swings and support sustained cash generation and reinvestment capacity.
Read all positive factors
Akzo Nobel (AKZOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.09B
Dividend Yield3.29%
Average Volume (3M)51.64K
Price to Earnings (P/E)16.3
Beta (1Y)0.79
Revenue Growth0.77%
EPS Growth62.39%
CountryUS
Employees31,500
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.23
Shares Outstanding514,333,070
10 Day Avg. Volume103,655
30 Day Avg. Volume51,636
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)2.17
Price to Sales (P/S)1.04
P/FCF Ratio17.36
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.52
Revenue Forecast (FY)$11.46B
Akzo Nobel Business Overview & Revenue Model
Company Description
Akzo Nobel N.V. operates as an international corporation, specializing in the creation, production, and distribution of a comprehensive array of paints and protective surface coverings. The company's offerings fall into two primary categories: dec...
How the Company Makes Money
Akzo Nobel makes money primarily by selling coatings products and related services to professional customers (e.g., industrial manufacturers, contractors, and applicators), retailers and distributors, and end users, generating revenue when product...
Akzo Nobel Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call showcased solid operational and financial progress: organic growth, disciplined pricing, margin expansion, positive free cash flow, improved working capital and an ambitious sustainability milestone. Management reiterated full-year EBITDA guidance and detailed clear merger synergy potential with Axalta. Key challenges include Deco volume softness (EMEA and China), negative mix effects, Marine project timing, raw material inflation volatility, and evolving Russia-related uncertainty. Overall the positives in margin improvement, cash flow, sustainability achievement and merger upside outweigh the operational headwinds and one-off impacts.Positive Updates
Organic Sales Growth and Pricing
Organic sales increased 2% year-on-year in Q2 with pricing up 3% and volumes broadly stable; company emphasized implemented pricing to protect margins.
Negative Updates
Total Revenue Decline
Total reported revenue was down 1% in Q2, partly driven by the divestment of liquid businesses in India which reduced revenue by approximately 3% and a slight FX translation headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Organic Sales Growth and Pricing
Organic sales increased 2% year-on-year in Q2 with pricing up 3% and volumes broadly stable; company emphasized implemented pricing to protect margins.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance of adjusted EBITDA at or above EUR 1,470m, driven by a EUR 100m step‑up (about EUR 90m net savings from the industrial excellence program with further savings to come) and said Q3 adjusted EBITDA is expected around EUR 390m with volumes broadly flat and pricing continuing to build to fully offset inflation; they see H2 raw‑material headwinds in the mid‑teens with pricing ramping to mid‑single digits to offset. Key quarterly and balance‑sheet metrics referenced: Q2 organic sales +2% (pricing +3%, volumes flat, mix -1%), adjusted EBITDA EUR 398m (+5% at comparable scope) and margin 15.4% (+40bps), adjusted gross margin 42.7% (+70bps), free cash flow EUR 108m, trade working capital 15.6% of revenue (down 140bps y/y) with year‑end working capital target ~14.5%, ROI 13.8%, net leverage ~2.2x, capex guidance trimmed to ~EUR 300m (from EUR 350m) and identified cash outs ~EUR 250m (including merger costs).Akzo Nobel Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
57
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.91B | 9.76B | 10.71B | 10.67B | 10.85B | 9.59B |
| Gross Profit | 4.03B | 3.89B | 4.34B | 4.23B | 3.92B | 3.85B |
| EBITDA | 1.60B | 1.48B | 1.40B | 1.33B | 1.05B | 1.53B |
| Net Income | 632.69M | 609.94M | 542.00M | 442.00M | 352.00M | 829.00M |
Balance Sheet | ||||||
| Total Assets | 16.13B | 13.95B | 14.25B | 14.56B | 14.74B | 13.88B |
| Cash, Cash Equivalents and Short-Term Investments | 3.46B | 1.92B | 1.47B | 1.78B | 1.79B | 1.21B |
| Total Debt | 6.59B | 4.86B | 5.37B | 5.56B | 5.88B | 3.55B |
| Total Liabilities | 11.10B | 9.13B | 9.43B | 10.01B | 10.19B | 8.24B |
| Stockholders Equity | 4.85B | 4.66B | 4.57B | 4.32B | 4.33B | 5.42B |
Cash Flow | ||||||
| Free Cash Flow | 590.47M | 582.08M | 362.00M | 834.00M | -38.00M | 317.00M |
| Operating Cash Flow | 877.61M | 878.89M | 668.00M | 1.12B | 254.00M | 605.00M |
| Investing Cash Flow | 409.49M | 407.27M | -132.00M | -144.00M | -1.09B | -134.00M |
| Financing Cash Flow | 328.34M | -925.95M | -684.00M | -827.00M | 1.14B | -974.00M |
Akzo Nobel Technical Analysis
Positive
23.57
Price Trends
23.05
Positive
22.10
Positive
21.68
Positive
Market Momentum
0.09
Positive
50.85
Neutral
25.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKZOY, the sentiment is Positive. The current price of 23.57 is below the 20-day moving average (MA) of 23.70, above the 50-day MA of 23.05, and above the 200-day MA of 21.68, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKZOY.
Akzo Nobel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $81.01B | 30.48 | 62.12% | 0.96% | 5.76% | 7.42% | |
71 Outperform | $7.66B | 21.95 | 14.59% | ― | -0.92% | -20.25% | |
69 Neutral | $13.46B | 20.33 | 20.93% | 2.05% | 6.66% | -3.58% | |
64 Neutral | $12.09B | 16.33 | 13.88% | 3.29% | 0.77% | 62.39% | |
62 Neutral | $25.02B | 16.03 | 19.47% | 2.55% | 1.47% | 23.56% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $3.34B | 63.97 | 2.77% | 2.29% | -1.39% | ― |
* Basic Materials Sector Average
AKZOY
Akzo Nobel
23.52
0.03
0.11%
ASH
Ashland
72.93
19.84
37.36%
PPG
PPG Industries
112.53
3.84
3.54%
RPM
RPM International
105.52
-20.03
-15.95%
SHW
Sherwin-Williams Company
333.71
-37.99
-10.22%
AXTA
Axalta Coating Systems
35.78
3.40
10.50%
Akzo Nobel Corporate Events
AkzoNobel Shareholders Clear Path for Merger with Axalta
Aug 7, 2026
On August 5, 2026, AkzoNobel shareholders approved all resolutions at an Extraordinary General Meeting supporting an all-share merger with Axalta Coating Systems. The vote covers the merger itself, changes to AkzoNobel’s Articles of Associat...
AkzoNobel and Axalta Tighten Governance Terms Ahead of August Merger Votes
Jul 23, 2026
AkzoNobel and Axalta, which are pursuing an all-share merger of equals, announced on July 23, 2026 that they will strengthen governance for the future combined company following extensive dialogue with shareholders and other stakeholders. The adju...
Akzo Nobel Q2 2026 Results Show Margin Gains Amid Revenue Pressure and Axalta Merger Plans
Jul 22, 2026
In its second-quarter and half-year 2026 results, Akzo Nobel reported organic sales growth of 2% in Q2, driven by higher pricing and stable volumes, though total revenue slipped 1% due to foreign exchange and the earlier divestment of its liquid c...
Akzo Nobel Files Q2 2026 Report, Flags Risks Around Proposed Axalta Deal
Jul 22, 2026
Akzo Nobel N.V., a Netherlands-based global leader in paints, coatings and related chemical products, serves industrial, automotive and construction markets and reports as a foreign private issuer in the U.S. under IFRS. The company maintains a st...
AkzoNobel’s Russian Units Put Under Temporary External Administration
Jul 13, 2026
On July 13, 2026, AkzoNobel disclosed that its Russian subsidiaries have been placed under temporary external administration by presidential decree, transferring operational control to a designated local entity while leaving ownership unchanged. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.