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Croda International PLC (GB:49GP)
LSE:49GP
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Croda International
(LSE:49GP)
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Rating:66Neutral
Price Target:
95.00p
▲(9.20% Upside)
Croda International's overall stock score is driven by its stable financial performance and attractive valuation, particularly the high dividend yield. However, technical analysis indicates bearish momentum, and the earnings call reflects a mixed sentiment with both growth and challenges. The absence of significant corporate events further emphasizes the need to focus on existing financial and market conditions.
Croda International (49GP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.82B
Dividend Yield7.59%
Average Volume (3M)1.00
Price to Earnings (P/E)―
Beta (1Y)0.02
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees6,027
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)N/A
Shares Outstanding499,000
10 Day Avg. Volume0
30 Day Avg. Volume1
Financial Highlights & Ratios
PEG Ratio-4.55
Price to Book (P/B)2.07
Price to Sales (P/S)2.90
P/FCF Ratio34.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£95.00Price Target Upside9.20% Upside
Rating ConsensusHold
Number of Analyst Covering1
Croda International Business Overview & Revenue Model
Company DescriptionCroda International Plc creates, makes, and sells specialty chemicals in Europe, the Middle East, Africa, North America, Asia, and Latin America. It operates through four segments: Consumer Care, Life Sciences, Performance Technologies, and Industrial Chemicals. The company offers adhesives; crop protection additives and adjuvants, seed enhancement and animal health chemicals, chemical bio-stimulants, and specialty additives for agricultural films; and lubricant additives, coatings and polymers, vehicle cleaning chemicals, and products for automotive textiles and fibers, as well as specialty additives for plastics, and battery and catalyst industries. It also provides specialty ingredients for self-tanning, color cosmetics, bath and shower, deodorants, anti-perspirants, depilatories, men's grooming, and oral hygiene, as well as skin, hair, sun, body, and baby care applications; construction chemicals and bitumen additives; dietary supplements; and materials and polymer additives for electronics and devices. In addition, the company offers chemistries, emulsifiers, fuel and power generation additives, and polymer additives; food additives; specialty polymer additives for furniture and wood applications; household, industrial, and institutional cleaning products; lubricants; oleochemicals; and packaging, print, and paper chemicals. Further, it provides paints and coatings; active pharmaceutical ingredients; thermal management products; plastic and rubber products; skin health products; hygiene and industrial nonwovens, botanical extracts, tissues, and textile auxiliaries; and water treatment chemicals. Additionally, the company offers bio-based phase change materials for buildings and ventilation, clothing and healthcare, electronics and devices, food and refrigeration, energy storage and recovery, temperature controlled packaging, and vehicles and automotive applications. The company was incorporated in 1925 and is headquartered in Goole, the United Kingdom.
How the Company Makes MoneyCroda International generates revenue primarily through the sale of specialty chemicals and ingredients across its diverse business sectors. The company's revenue model is built on providing high-value, customized solutions to its clients, which include major brands in the personal care and health care industries. Key revenue streams include the sale of surfactants, emulsifiers, and active ingredients, as well as performance-enhancing additives for various applications. Additionally, Croda has established significant partnerships with leading companies in its focus sectors, which not only enhance its product offerings but also ensure a steady demand for its innovative solutions. The emphasis on sustainability and innovation allows Croda to command premium pricing for its products, further contributing to its profitability.
Croda International Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong group sales growth and profitability improvements, alongside a robust cost savings initiative. However, challenges in North America, pressures in the Pharma segment, and rationalization costs were notable concerns. The sentiment reflects a balanced perspective with growth offset by significant challenges.Q2-2025 Updates
Positive Updates
Group Sales Increase
Group sales increased by 7% for the first half of the year, with growth in all three business segments and all regions.
Adjusted Operating Profit Growth
Adjusted operating profit increased by 12% to GBP 147 million, demonstrating a strong financial performance.
Cost Savings Plan
Identified an additional GBP 60 million of cost savings, bringing the total to GBP 100 million in annualized savings by the end of 2027.
Consumer Care Performance
Consumer Care sales grew by 7%, with Fragrances & Flavors growing by 17% and Beauty Care volumes increasing by 8%.
Life Sciences Growth
Life Sciences sales increased by 9%, driven by strong demand in Agriculture, with volumes up 16%.
Strong Performance in Europe
European sales led with a 12% increase, reflecting strong performance in Consumer Care and Life Sciences.
Negative Updates
Challenges in North America
Political uncertainty in the U.S. negatively impacted consumer confidence, leading to some trading down in Beauty Actives.
Pharma Challenges
Pharma sales growth of 5% was impacted by U.S. policy decisions, slowing approval processes, and limited public funding.
Warehouse Rationalization
GBP 22 million impairment charge due to a decision to rationalize warehousing in Europe.
Free Cash Flow Impact
Free cash flow was GBP 34 million, impacted by higher working capital needs and net debt increased to GBP 580 million.
Pricing Pressure
Price/mix was 4% lower as prices were selectively reduced to regain market share in Agriculture and Beauty Care.
Company Guidance
In the call, Croda provided guidance for the fiscal year, emphasizing their financial performance and strategic initiatives. Sales increased by 7% for the first half of the year, with all three business units and regions contributing to the growth. Adjusted operating profit and profit before tax both rose by 12%, reaching £147 million and £138 million, respectively. Despite a challenging environment, Croda maintained their full-year guidance, expecting adjusted profit before tax to be between £265 million and £295 million. The company also announced an accelerated cost savings target, increasing from £40 million to £100 million in annualized savings by the end of 2027. This is part of their broader transformation program aimed at improving operational efficiency and customer experience. Additionally, Croda reported a free cash flow of £34 million and a net debt of £580 million, with leverage at 1.5x EBITDA. The company declared an interim dividend of 48p, reflecting their commitment to returning value to shareholders. Croda's strategic focus includes maximizing returns from recent investments, leveraging their proximity to local and regional customers, and enhancing innovation capabilities across their portfolio.Croda International Financial Statement Overview
Summary
Croda International shows a stable financial position with strong margins and a conservative balance sheet. Despite revenue declines and pressures on profitability, the company maintains healthy cash flow generation relative to net income. However, declining revenue and net profit margins suggest challenges in sustaining growth, warranting careful monitoring of future performance.Income Statement
Croda International has experienced declining revenue over the past two years, with a 3.92% decrease from 2022 to 2023 and a further 3.92% decrease into 2024. The gross profit margin for 2024 stands at 45.08%, indicating strong control over cost of goods sold. However, the net profit margin has declined to 9.73% from 10.09% in 2023, reflecting challenges in maintaining profitability. The EBIT margin for 2024 is 13.97%, a decrease from 14.60% in 2023, while the EBITDA margin is 22.99%, down from 22.93% in 2023. The company shows resilience in maintaining decent margins despite revenue pressures.65
Positive
Balance Sheet
The company's balance sheet reflects stability with a debt-to-equity ratio of 0.31 in 2024, showing a conservative leverage position. The return on equity (ROE) is 6.94%, down from 7.27% in 2023, suggesting a slight decline in efficiency at generating profits from equity. Croda's equity ratio stands at 65.03%, indicating a robust equity position relative to total assets, which is a positive indicator of financial health.75
Positive
Cash Flow
Free cash flow decreased by 12.23% from 2023 to 2024, reflecting challenges in cash generation. The operating cash flow to net income ratio is 2.01, showing strong cash flow generation relative to net income. The free cash flow to net income ratio is 0.87, indicating a healthy conversion of net income into free cash flow. While cash flow metrics show strength in terms of cash generation, the decline in free cash flow growth highlights potential pressure on liquidity.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.67B | 1.63B | 1.69B | 2.09B | 1.89B | 1.39B |
| Gross Profit | 614.80M | 733.90M | 730.00M | 864.90M | 825.60M | 550.30M |
| EBITDA | 355.50M | 374.50M | 388.50M | 924.80M | 549.40M | 369.60M |
| Net Income | 139.90M | 158.50M | 171.00M | 649.30M | 320.80M | 201.60M |
Balance Sheet | ||||||
| Total Assets | 3.46B | 3.51B | 3.58B | 3.61B | 3.29B | 3.03B |
| Cash, Cash Equivalents and Short-Term Investments | 157.80M | 166.80M | 172.50M | 320.60M | 112.80M | 106.50M |
| Total Debt | 737.90M | 699.10M | 710.10M | 615.80M | 936.00M | 907.00M |
| Total Liabilities | 1.23B | 1.21B | 1.21B | 1.18B | 1.53B | 1.43B |
| Stockholders Equity | 2.22B | 2.28B | 2.35B | 2.42B | 1.75B | 1.59B |
Cash Flow | ||||||
| Free Cash Flow | 79.80M | 137.60M | 156.80M | 160.90M | 190.50M | 166.30M |
| Operating Cash Flow | 226.60M | 319.40M | 337.50M | 313.30M | 349.20M | 287.50M |
| Investing Cash Flow | -135.80M | -139.10M | -409.80M | 418.10M | -218.40M | -992.40M |
| Financing Cash Flow | -128.20M | -182.60M | -52.40M | -550.90M | -111.90M | 722.40M |
Croda International Technical Analysis
Negative
87.00
Price Trends
87.37
Negative
87.62
Negative
86.22
Positive
Market Momentum
-0.13
Positive
2.92
Positive
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:49GP, the sentiment is Negative. The current price of 87 is below the 20-day moving average (MA) of 87.18, below the 50-day MA of 87.37, and above the 200-day MA of 86.22, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 2.92 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:49GP.
Croda International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £164.48M | 15.12 | 8.02% | 3.01% | 1.12% | -0.70% | |
75 Outperform | £3.47B | 9.75 | 15.96% | 3.73% | -9.10% | 239.75% | |
70 Outperform | £569.69M | 19.18 | 6.65% | 9.09% | 4.75% | -3.29% | |
66 Neutral | £3.82B | ― | ― | 7.59% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | £928.11M | ― | 3.37% | 1.38% | -11.78% | -92.61% | |
48 Neutral | £100.59M | ― | -7.26% | ― | -4.41% | 2.29% |
* Basic Materials Sector Average
GB:49GP
Croda International
87.00
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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.