Croda International (50GP) AI Stock Analysis

• Market Cap: £3.82B
• Dividend Yield: 7.11%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 6,027
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 616,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -4.55
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 34.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £84.00
• Price Target Upside: 7.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 84.00p ▲(7.69% Upside)

Croda International's overall stock score is driven by its strong financial performance and positive earnings call, which highlight resilience and growth potential. However, technical indicators suggest a lack of momentum, and valuation concerns persist due to the absence of a P/E ratio. The attractive dividend yield partially offsets these risks.

Croda International Business Overview & Revenue Model

Company Description

Croda 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 Money

Croda International generates revenue primarily through the sale of specialty chemicals and ingredients across multiple sectors. The company operates through several key business divisions, including Personal Care, Crop Care, and Life Sciences, each contributing significantly to its overall revenue. Major revenue streams come from the formulation and distribution of high-value products tailored to meet customer specifications, as well as from long-term contracts with key clients in various industries. Additionally, Croda leverages its commitment to sustainability, which attracts environmentally conscious businesses, thereby enhancing its market position. Strategic partnerships with leading companies in the personal care and agricultural sectors further bolster its earnings by enabling co-development of innovative solutions and expanding market reach.

Croda International Financial Statement Overview

Summary

Croda International shows resilience in a challenging market, maintaining strong margins and a robust balance sheet. While revenue growth has slowed, the company benefits from low leverage and solid equity positions. Cash flows remain stable, though there are signs of pressure on free cash flow. Overall, the company is well-positioned, but mindful management of growth and cash flow is essential moving forward.

Income Statement

The company experienced a decline in revenue from 2022 to 2024, reflecting a challenging market environment. Despite this, margins remain relatively healthy with a gross profit margin of 45.1% and a net profit margin of 9.7% in 2024. The EBIT margin stood at 14.0% and the EBITDA margin at 23.0%, indicating strong operational efficiency despite lower revenues. The declining revenue growth poses a risk to future profitability.

Balance Sheet

The balance sheet is strong with a debt-to-equity ratio of 0.31, suggesting a conservative leverage position. Return on equity was 6.9%, which is moderate. The equity ratio of 65.0% indicates a strong equity buffer and financial stability. The company has managed its liabilities well, maintaining shareholder value and ensuring low leverage risks.

Cash Flow

The cash flow statement reveals stable operating cash flows, though free cash flow decreased from 2022 to 2024, suggesting increased capital investments. The operating cash flow to net income ratio of 2.0 demonstrates effective cash generation from operations. However, the free cash flow to net income ratio dropped to 0.87, indicating pressure on cash available for discretionary use.

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

• Technical Analysis Sentiment: Negative
• Last Price: 78.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:50GP, the sentiment is Negative. The current price of 78 is below the 20-day moving average (MA) of 78.00, above the 50-day MA of 78.00, and below the 200-day MA of 79.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 0.37 is Positive, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:50GP.

Croda International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TET	79 Outperform	£164.48M	15.12	8.02%	3.00%	1.12%	-0.70%
JMAT	75 Outperform	£3.47B	9.75	15.96%	3.64%	-9.10%	239.75%
VCT	70 Outperform	£581.00M	19.56	6.65%	8.92%	4.75%	-3.29%
50GP	66 Neutral	£3.82B	―	―	7.11%	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ELM	55 Neutral	£934.77M	―	3.37%	1.38%	-11.78%	-92.61%
SYNT	48 Neutral	£100.59M	―	-7.26%	―	-4.41%	2.29%