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Akzo Nobel (AKZOY)
:AKZOY
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Akzo Nobel
(OTC:AKZOY)
Rating:66Neutral
Price Target:―
Akzo Nobel (AKZOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.69B
Dividend Yield2.6%
Average Volume (3M)53.55K
Price to Earnings (P/E)23.0
Beta (1Y)0.54
Revenue Growth-0.68%
EPS Growth-12.26%
CountryUS
Employees34,100
SectorBasic Materials
Sector Strength63
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.36
Shares Outstanding512,359,000
10 Day Avg. Volume5,109
30 Day Avg. Volume53,548
Financial Highlights & Ratios
PEG Ratio-0.74
Price to Book (P/B)2.06
Price to Sales (P/S)0.00
P/FCF Ratio72.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Akzo Nobel Business Overview & Revenue Model
Company DescriptionAkzo Nobel N.V., operating under the brand name AkzoNobel, is a leading global paints and coatings company headquartered in Amsterdam, Netherlands. The company operates across two primary business segments: Decorative Paints and Performance Coatings. AkzoNobel's Decorative Paints division produces a wide range of interior and exterior paints and coatings, while the Performance Coatings segment offers protective coatings and specialty finishes for industries such as automotive, marine, and aerospace. The company is recognized for its commitment to sustainability and innovation in the development of its products.
How the Company Makes MoneyAkzoNobel generates revenue primarily through the sale of its paint and coating products to both consumers and industrial customers. The Decorative Paints segment contributes significantly to its earnings by offering products through retail and professional channels, catering to residential and commercial markets. Performance Coatings, meanwhile, serves various industries with specialized coatings solutions, including automotive and aerospace finishes, wood coatings, and powder coatings. AkzoNobel's revenue model is bolstered by its global reach, strategic partnerships, and focus on research and development, allowing it to maintain a competitive edge in the paints and coatings industry. The company also benefits from its strong brand portfolio, which includes well-known names like Dulux, Sikkens, and International, enhancing its market presence and customer loyalty.
Akzo Nobel Financial Statement Overview
Summary
Overall, Akzo Nobel demonstrates solid financial performance with strong profitability margins and a stable balance sheet, marked by zero debt, enhancing financial stability. While the income statement shows positive growth and profitability, cash flow management poses challenges that need attention to sustain future growth. The company's strategic focus on reducing liabilities has strengthened its financial position, although this may have impacted asset growth.Income Statement
Akzo Nobel's income statement shows a stable revenue base with a slight growth from 2023 to 2024. The gross profit margin for 2024 is strong at approximately 40.5%, indicating effective cost management. The net profit margin improved to about 5.1% in 2024, up from 4.1% in 2023, reflecting enhanced profitability. However, EBIT and EBITDA margins have slightly decreased, suggesting some operational cost pressures.72
Positive
Balance Sheet
The balance sheet reflects a solid equity base with a total equity ratio of approximately 32.1% for 2024, indicating moderate leverage. The company has eliminated its total debt in 2024, significantly improving its financial stability compared to previous years. Return on Equity improved to about 11.8% in 2024, showcasing better profitability for shareholders. However, the reduction in total assets and equity from prior years indicates potential downsizing or asset divestment.68
Positive
Cash Flow
Akzo Nobel's cash flow statement shows a decline in operating cash flow from 2023 to 2024, impacting free cash flow, which decreased significantly by approximately 56.3%. The operating cash flow to net income ratio has fallen, pointing to a potential challenge in cash generation relative to earnings. However, free cash flow remains positive, reflecting some resilience in managing capital expenditures.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.68B | 10.71B | 10.67B | 10.85B | 9.59B | 8.53B | Gross Profit |
| 4.30B | 4.34B | 4.03B | 3.92B | 3.85B | 3.79B | EBIT |
| 852.00M | 917.00M | 1.03B | 708.00M | 1.12B | 963.00M | EBITDA |
| 1.27B | 1.40B | 1.33B | 1.05B | 1.50B | 1.34B | Net Income Common Stockholders |
| 468.00M | 542.00M | 442.00M | 352.00M | 829.00M | 630.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.77B | 1.47B | 1.78B | 1.79B | 1.21B | 1.86B | Total Assets |
| 14.85B | 14.25B | 14.56B | 14.74B | 13.88B | 13.18B | Total Debt |
| 0.00 | 5.37B | 5.56B | 5.88B | 3.55B | 2.89B | Net Debt |
| -1.60B | 4.07B | 4.05B | 4.42B | 2.40B | 1.28B | Total Liabilities |
| 9.99B | 9.43B | 10.01B | 10.19B | 8.24B | 7.23B | Stockholders Equity |
| 4.62B | 4.57B | 4.32B | 4.33B | 5.42B | 5.75B |
| Cash Flow | Free Cash Flow | ||||
| 395.00M | 367.00M | 840.00M | -29.00M | 317.00M | 962.00M | Operating Cash Flow |
| 731.00M | 673.00M | 1.13B | 263.00M | 605.00M | 1.22B | Investing Cash Flow |
| -415.00M | -132.00M | -144.00M | -1.09B | -134.00M | -427.00M | Financing Cash Flow |
| 368.00M | -684.00M | -827.00M | 1.14B | -974.00M | -353.00M |
Akzo Nobel Technical Analysis
Positive
22.66
Price Trends
20.72
Positive
20.20
Positive
20.38
Positive
Market Momentum
0.57
Negative
65.38
Neutral
97.70
Negative
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 22.66 is above the 20-day moving average (MA) of 21.42, above the 50-day MA of 20.72, and above the 200-day MA of 20.38, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 97.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKZOY.
Akzo Nobel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $89.99B | 33.98 | 70.22% | 0.83% | 0.26% | 12.82% | |
77 Outperform | $6.96B | 15.32 | 23.59% | ― | 0.96% | 82.78% | |
69 Neutral | $9.51B | 10.49 | 16.16% | 3.98% | 2.78% | 1.50% | |
66 Neutral | $11.69B | 23.01 | 10.13% | 2.60% | -0.68% | -12.26% | |
63 Neutral | $25.83B | 19.27 | 18.47% | 2.42% | -7.67% | -0.58% | |
50 Neutral | $1.98B | -1.07 | -21.34% | 3.71% | 2.03% | -30.65% | |
49 Neutral | $9.49B | ― | -7.56% | 4.10% | -39.35% | -120.09% |
* Basic Materials Sector Average
Performance Comparison
AKZOY
Akzo Nobel
22.78
0.06
0.26%
EMN
Eastman Chemical
81.36
-14.40
-15.04%
PPG
PPG Industries
111.21
-16.81
-13.13%
SHW
Sherwin-Williams Company
352.94
52.33
17.41%
SQM
Sociedad Quimica Y Minera SA
33.30
-15.32
-31.51%
AXTA
Axalta Coating Systems
31.57
-3.34
-9.57%
Akzo Nobel Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 16.99%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with solid performance in certain segments like Marine and Protective Coatings and successful cost-cutting measures. However, these were countered by challenges such as volume declines in Decorative Paints and macroeconomic uncertainties, particularly in North America and due to FX headwinds.Q1-2025 Updates
Positive Updates
SG&A Reductions Ahead of Schedule
Over 70% of the targeted 2,200 SG&A reductions are already effective, with further reductions planned by mid-year. This has helped offset wage and cost inflation, contributing to stable OpEx year-on-year.
Successful Bond Issuance
Successfully issued a EUR 500 million 10-year bond at 4% in March, securing long-term funding at attractive terms ahead of market volatility.
Marine and Protective Coatings Growth
Marine and Protective segments delivered double-digit volume growth, with continued momentum in marine new build and protective coatings.
Resilience in China Market
China's performance was better than expected with a solid improvement, counter to anticipated double-digit declines.
Negative Updates
Volume Decline in Decorative Paints
Volumes in Decorative Paints were down 2%, partially due to a commercial rebalancing in Turkey and timing of price increases in Brazil.
Softer Demand in North America Coatings
Demand in North America softened due to increased macroeconomic uncertainties, impacting the Coatings segment.
FX Headwinds
Foreign exchange movements were a 1% headwind to revenue, primarily due to unfavorable rates of the Turkish lira, Brazilian real, and Argentinian peso.
Company Guidance
In AkzoNobel's first-quarter 2025 investor update, the company reported a flat adjusted EBITDA year-over-year at constant currencies, highlighting resilience despite softer markets. Organic sales remained flat, with a 2% positive price/mix offset by a 2% volume decline, primarily due to a commercial rebalancing in Turkey. Operational expenses remained stable year-on-year, with over 70% of the targeted 2,200 SG&A reductions already effective. The adjusted leverage ratio stood at 2.8x, influenced by seasonal working capital buildup and restructuring activities. The company issued a €500 million 10-year bond at 4% in March, securing long-term funding. Looking ahead, AkzoNobel aims for adjusted EBITDA above €1.55 billion for the full year, despite macroeconomic uncertainties and potential FX headwinds. The company continues to focus on efficiency measures and remains vigilant of trade dynamics, particularly in North America.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.