tiprankstipranks
Croda International PLC (GB:50GP)
LSE:50GP
UK Market
Want to see GB:50GP full AI Analyst Report?

Croda International (50GP) AI Stock Analysis

0 Followers

Top Page

GB:50GP

Croda International

(LSE:50GP)

Select Model
Select Model
Select Model
Neutral 68 (OpenAI - Gpt-5.6Sol)
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)

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
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
Mixed fundamentals. The balance sheet is relatively solid with manageable leverage, and operating cash flow remains consistently positive with a strong free-cash-flow rebound in 2025. Offsetting this, revenue has been choppy and net income has stepped down materially from 2022 through 2025, which is a clear earnings-quality headwind.
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
67
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.72B1.70B1.63B1.69B2.09B1.89B
Gross Profit615.90M608.70M733.90M730.00M864.90M825.60M
EBITDA390.10M380.70M374.50M388.50M924.80M549.40M
Net Income79.50M62.00M158.50M171.00M649.30M320.80M
Balance Sheet
Total Assets3.53B3.41B3.51B3.58B3.61B3.29B
Cash, Cash Equivalents and Short-Term Investments205.30M172.80M166.80M172.50M320.60M112.80M
Total Debt783.20M696.60M699.10M710.10M615.80M936.00M
Total Liabilities1.34B1.21B1.21B1.21B1.18B1.53B
Stockholders Equity2.17B2.19B2.28B2.35B2.42B1.75B
Cash Flow
Free Cash Flow187.80M171.80M137.60M156.80M160.90M190.50M
Operating Cash Flow283.40M289.50M319.40M337.50M313.30M349.20M
Investing Cash Flow-93.00M-109.80M-139.10M-409.80M418.10M-218.40M
Financing Cash Flow-175.90M-152.60M-182.60M-52.40M-550.90M-111.90M

Croda International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price78.00
Price Trends
50DMA
80.89
Negative
100DMA
79.48
Negative
200DMA
77.85
Negative
Market Momentum
MACD
-1.28
Positive
RSI
2.93
Positive
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
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
£4.60B58.273.65%781.46%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
£1.00B18.4511.29%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
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.Date of analysis: Jul 28, 2026