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Croda International
(LSE:50GP)
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Rating:68Neutral
Price Target:
82.00 p
▲(5.13% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by decent overall financial health (solid balance sheet and positive cash generation) and a supportive earnings update with reiterated guidance and improving margins/EPS. These positives are tempered by the weaker multi-year net income trajectory and a demanding valuation (high P/E), while technicals are moderately constructive based on moving-average positioning.
Positive Factors
Differentiated specialty-ingredients model
Croda’s differentiated ingredients and formulation support can command premiums over commodity chemicals while embedding products in customers’ ongoing formulations. Repeat B2B demand, regulatory expertise and sustainability attributes support customer retention and can make margins more durable across the next several quarters.
Negative Factors
Weak multi-year net income trend
The continued decline in bottom-line profit shows that Croda’s earnings power has not fully recovered from the unusually strong 2022 base. Even with resilient operating profit, weaker net income reduces confidence in the durability of returns and limits the evidence for sustained earnings compounding.
Read all positive and negative factors
Positive Factors
Negative Factors
Differentiated specialty-ingredients model
Croda’s differentiated ingredients and formulation support can command premiums over commodity chemicals while embedding products in customers’ ongoing formulations. Repeat B2B demand, regulatory expertise and sustainability attributes support customer retention and can make margins more durable across the next several quarters.
Read all positive factors
Croda International (50GP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.60B
Dividend Yield781.46%
Average Volume (3M)3.03K
Price to Earnings (P/E)58.3
Beta (1Y)0.03
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees5,954
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.57
Shares Outstanding616,000
10 Day Avg. Volume7,000
30 Day Avg. Volume3,034
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)1.72
Price to Sales (P/S)2.21
P/FCF Ratio21.91
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Croda International Business Overview & Revenue Model
Company Description
Croda International Plc is a global enterprise specializing in the development, manufacturing, and distribution of high-performance chemicals, with its market reach spanning Europe, the Middle East, Africa, North America, Asia, and Latin America. ...
How the Company Makes Money
Croda makes money primarily by selling specialty chemical ingredients and ingredient systems to business customers (B2B), generating revenue from contracted and repeat demand tied to customers’ ongoing production of consumer and industrial goods. ...
Croda International Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call conveyed a broadly positive performance: underlying sales, EPS and margins improved with clear signs of momentum in innovation-led growth (notably Beauty Actives and Pharma Ingredients), transformation savings are materializing, and strategic capacity expansions in Asia support future growth. Challenges remain—Pharma Solutions timing, Crop Protection weakness, regional/segment softness (North America mass market), working capital outflows and one-off OpEx inflation—but these are presented as manageable or phased rather than structural. Management reiterated full-year guidance (organic sales growth 3–6%) and the 3-year targets through 2028, signaling confidence in execution.Positive Updates
Group Sales Growth
Constant currency sales up 5% to GBP 881 million in H1 2026, with volumes +1% and price/mix +4%.
Negative Updates
Pharma Solutions Underperformance and Phasing
Pharma Solutions was below expectations in H1 due to project phasing; business is lumpy and revenue recognition timing may cause H2 dependency on order book to deliver improvement.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Sales Growth
Constant currency sales up 5% to GBP 881 million in H1 2026, with volumes +1% and price/mix +4%.
Read all positive updates
Company Guidance
Management reiterated unchanged full‑year guidance, forecasting organic sales growth of 3–6% and a further increase in adjusted operating margin, with adjusted operating profit expectations unchanged and FX sensitivities provided; they also said the Q2 exit rate gives confidence in sequential margin improvement in H2 and that the group remains on track for its 3‑year/2028 financial framework. In support, H1 sales were £881m (+5%) with NPP +7%, volumes +1% and price/mix +4%; adjusted operating profit was £156m (+7%) and margin rose to 17.7% (from 17.2%), EPS 78p (+9%), EBITDA £208m, free cash flow £38m (vs £28m), net debt £578m (leverage 1.4x) and an interim dividend of 48p. Management said transformation delivered £18m of H1 savings (cumulative £46m toward a £100m target), CapEx fell to £43m, and a working‑capital program aims for ~£50m of structural savings by 2028 to offset typical annual WC funding of £20–30m.Croda International Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
67
Positive
| 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 Technical Analysis
Negative
78.00
Price Trends
80.89
Negative
79.48
Negative
77.85
Negative
Market Momentum
-1.28
Positive
2.93
Positive
27.27
Neutral
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 above the 20-day moving average (MA) of 77.42, below the 50-day MA of 80.89, and above the 200-day MA of 77.85, indicating a bearish trend. The MACD of -1.28 indicates Positive momentum. The RSI at 2.93 is Positive, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:50GP.
Croda International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £754.35M | -37.65 | -4.95% | 3.10% | -1.24% | -166.15% | |
68 Neutral | £4.60B | 58.27 | 3.65% | 781.46% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £1.00B | 18.45 | 11.29% | 1.88% | -11.73% | ― | |
59 Neutral | £2.89B | -40.21 | -4.66% | 4.68% | 7.70% | -128.58% | |
53 Neutral | £178.70M | -1.49 | -13.27% | 9.77% | -4.98% | -43.98% |
* Basic Materials Sector Average
GB:50GP
Croda International
75.50
3.27
4.53%
GB:ELM
Elementis
176.80
15.63
9.70%
GB:JMAT
Johnson Matthey
2,292.00
346.63
17.82%
GB:SYNT
Synthomer
109.00
49.90
84.43%
GB:VCT
Victrex
866.00
197.79
29.60%
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.