Croda International (49GP) AI Stock Analysis

Croda International

(LSE:49GP)

Select Model

Rating:62Neutral

Price Target:GBX 92.00▲(5.75% Upside)

Action:reiterated

Date:10/29/26

The score is driven by a solid but uneven financial profile (sharp 2025 net income drop despite resilient EBIT and cash flow) and a positive earnings-call outlook with reaffirmed growth and margin guidance plus tangible transformation savings. Offsetting these are neutral/low technical momentum signals and a challenging valuation profile with a high P/E despite a high dividend yield.

Positive Factors

Differentiated specialty ingredientsCroda’s science-led ingredients, regulatory capabilities and application expertise support premium pricing and customer co-development. These capabilities can strengthen customer retention and defend margins over time, while long-term supply relationships provide a durable foundation across consumer, life sciences and industrial markets.

Negative Factors

Muted revenue and earnings trendBroadly flat revenue limits operating leverage and makes sustained earnings improvement more dependent on pricing, mix and cost control. The sharp decline in net income also shows that bottom-line performance remains volatile, even though EBIT held up better, reducing confidence in near-term earnings quality.

Croda International (49GP) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: GBP 121.44M
Dividend Yield: 7.59%
Average Volume (3M): 1,100
Price to Earnings (P/E): 64.4
Beta (1Y): 0.05
Revenue Growth: ―
EPS Growth: ―
Country: UK
Employees: 5,954
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

Croda International Business Overview & Revenue Model

Company Description

Croda International Plc, founded in 1925 and based in Goole, UK, is a global enterprise dedicated to the innovation, production, and distribution of specialty chemicals. Its extensive reach covers Europe, the Middle East, Africa, North America, Asia,...

How the Company Makes Money

Croda makes money primarily by selling specialty chemical ingredients and ingredient systems to business customers (B2B) across its end-markets. Revenue is generated through (1) Consumer Care ingredient sales, where Croda supplies functional additive...

Croda International Earnings Call Summary

Earnings Call Date:Jul 27, 2026(Q2-2026)|% Change Since:0.00%|Next Earnings Date:Jul 24, 2018

Earnings Call SentimentPositive

The call conveyed a positive operational and financial momentum: sales and profits grew, margins expanded, transformation savings are materializing and innovation-led segments (notably Beauty Actives) delivered strong growth. There are clear executional achievements (new plants, digitalisation, NPP growth) and management reiterated unchanged full-year guidance. Notable challenges include phasing-related weakness in Pharma Solutions, disruptions in Fragrances & Flavours from Middle East conflict, crop end-market softness and elevated working capital/inventory. However, management signaled these are largely within control (pricing actions, order-book visibility, transformation roadmap) and expects H2 improvement.

Positive Updates

Revenue Growth in H1

Group sales increased 5% in constant currency to GBP 881 million, driven by volume (+1%) and price/mix (+4%). Organic guidance for the full year remains 3%–6%.

Negative Updates

Pharma Solutions Underperformance and Project Phasing

Pharma Solutions sales were below expectations in H1 due to project phasing; management described the business as lumpy/project-driven and expects order-book-led improvement in H2 but H1 weakness weighed on Life Sciences performance.

Company Guidance

Management reiterated unchanged 2026 guidance — organic sales growth of 3–6% and a further increase in adjusted operating margin, with adjusted operating profit expectations unchanged — saying the H1 exit rate and momentum give confidence to deliver full‑year margin expansion and to remain on track for the 3‑year / 2028 financial framework; H1 actuals supporting that view included group sales +5% to £881m, new & protected products +7%, volumes +1% and price/mix +4%, adjusted operating profit +7% to £156m and adjusted operating margin up to 17.7% (+50bp), EPS +9% to 78p, free cash flow £38m (from £28m), net debt £578m and leverage 1.4x EBITDA; transformation delivered £18m of savings in H1 (cumulative £46m toward a £100m target), CapEx was £43m, and working‑capital actions target ~£50m structural savings by 2028 to offset typical annual WC funding of £20–30m — with segment/region momentum (Consumer Care +8%, Pharma Ingredients +7%, Beauty Actives Q2 +27%, Asia +10%, Latin America +11%, North America -1%).

Croda International Financial Statement Overview

Summary

Financials are mixed: revenue has been broadly flat, and 2025 net income fell sharply (62.0M vs 158.5M in 2024) despite EBIT holding up (243.7M vs 227.5M). The balance sheet looks reasonably leveraged (total debt 760.3M vs equity 2.19B) but equity has declined and debt rose in 2025. Cash generation is a relative strength with solid operating cash flow and a strong 2025 free-cash-flow rebound, though year-to-year cash conversion has been volatile.

Income Statement

56Neutral

Balance Sheet

72Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.72B	1.70B	1.63B	1.69B	2.09B	1.89B
Gross Profit	615.90M	608.70M	733.90M	730.00M	864.90M	825.60M
EBITDA	390.10M	380.70M	374.50M	388.50M	924.80M	549.40M
Net Income	79.50M	62.00M	158.50M	171.00M	649.30M	320.80M
Balance Sheet
Total Assets	3.53B	3.41B	3.51B	3.58B	3.61B	3.29B
Cash, Cash Equivalents and Short-Term Investments	205.30M	172.80M	166.80M	172.50M	320.60M	112.80M
Total Debt	783.20M	696.60M	699.10M	710.10M	615.80M	936.00M
Total Liabilities	1.34B	1.21B	1.21B	1.21B	1.18B	1.53B
Stockholders Equity	2.17B	2.19B	2.28B	2.35B	2.42B	1.75B
Cash Flow
Free Cash Flow	187.80M	171.80M	137.60M	156.80M	160.90M	190.50M
Operating Cash Flow	283.40M	289.50M	319.40M	337.50M	313.30M	349.20M
Investing Cash Flow	-93.00M	-109.80M	-139.10M	-409.80M	418.10M	-218.40M
Financing Cash Flow	-175.90M	-152.60M	-182.60M	-52.40M	-550.90M	-111.90M

Croda International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:49GP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:ELM	73Outperform	GBP 1.06B	19.35	11.29%	1.78%	-11.73%	―
GB:49GP	62Neutral	GBP 5.09B	64.43	3.65%	7.59%	―	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GB:VCT	59Neutral	GBP 786.60M	-39.26	-4.95%	2.97%	-1.24%	-166.15%
GB:SYNT	57Neutral	GBP 181.98M	-1.52	-13.27%	―	-4.98%	-43.98%
GB:JMAT	51Neutral	GBP 2.97B	-41.89	-4.66%	4.49%	7.70%	-128.58%

* Basic Materials Sector Average

Performance Comparison

GB:49GP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:49GP	Croda International (49GP)	87.00	6.47	8.04%
GB:ELM	Elementis plc	187.20	25.84	16.01%
GB:JMAT	Johnson Matthey (Uk)	2388.00	270.54	12.78%
GB:SYNT	Synthomer plc	111.00	58.70	112.24%
GB:VCT	Victrex plc	903.00	319.23	54.68%

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.

Date of analysis: Oct 28, 2026

Croda International AI Stock Analysis