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Croda International (50GP) AI Stock Analysis

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GB:50GP

Croda International

(LSE:50GP)

Select Model
Rating:63Neutral
Price Target:GBX 82.00â–²(6.49% Upside)
Action:reiterated
Date:10/29/26

The score is anchored by mixed fundamentals: a relatively stable balance sheet and improving recent free cash flow are offset by a weaker multi-year net income trend. The earnings call adds support due to reiterated guidance, improving margins/EPS, and visible cost savings, but technicals are stretched (overbought signals) and valuation is a headwind given the high P/E and an unreliable dividend yield figure in the provided data.

Positive Factors
Differentiated specialty modelCroda sells differentiated ingredients that improve product performance, sustainability, and compliance rather than competing solely on commodity volume. Customer qualification and formulation integration can support recurring relationships, premium positioning, and durable revenue quality across end-markets.
Negative Factors
Weaker earnings powerThe multi-year decline in net income indicates that Croda's bottom-line earnings power has not kept pace with its revenue recovery. Even with relatively resilient operating profit and EBITDA, continued profit pressure could constrain reinvestment, shareholder returns, and confidence in sustainable margins.

Croda International (50GP) vs. iShares MSCI United Kingdom ETF (EWC)

-5%0%5%10%15%20%25%30%GB:50GP+6.61%EWC+21.27%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
GBP 50.83M
Dividend Yield
766.23%
Average Volume (3M)
25.76K
Price to Earnings (P/E)
64.4
Beta (1Y)
0.11
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 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. The...

How the Company Makes Money

Croda makes money primarily by selling specialty chemical ingredients and ingredient technologies to business customers (B2B) across consumer care and industrial markets. Its revenue model is largely product sales, where customers pay per unit/volume...

Croda International Earnings Call Summary

Earnings Call Date:Jul 27, 2026(Q2-2026)|% Change Since:-8.33%|Next Earnings Date:Jul 24, 2018
Earnings Call SentimentPositive

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.

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

Financials are mixed: the balance sheet is relatively solid (manageable leverage historically, though debt rose and equity fell in 2025), and cash generation is consistently positive with a strong free-cash-flow rebound in 2025. The main drag is profitability trajectory—net income has stepped down materially from 2022 through 2025 despite modest revenue recovery, indicating weaker earnings power.

Income Statement

58Neutral

Balance Sheet

74Positive

Cash Flow

67Positive
Financial statement breakdown
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 SentimentNeutral
Last Price77.00

Price Trends

50DMA76.14Positive
100DMA79.23Negative
200DMA78.11Negative

Market Momentum

MACD0.27Negative
RSI80.89Negative
STOCH100.00Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:50GP, the sentiment is Neutral. The current price of 77.00 is above the 20-day moving average (MA) of 76.40, above the 50-day MA of 76.14, and below the 200-day MA of 78.11, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 80.89 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:50GP.

Croda International Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

GB:50GP against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:ELMGB:ELM73OutperformGBP 1.06B19.3511.29%1.78%-11.73%―
GB:50GPGB:50GP63NeutralGBP 5.09B64.433.65%766.23%――
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
GB:VCTGB:VCT59NeutralGBP 786.60M-39.26-4.95%2.97%-1.24%-166.15%
GB:SYNTGB:SYNT57NeutralGBP 181.98M-1.52-13.27%―-4.98%-43.98%
GB:JMATGB:JMAT51NeutralGBP 2.97B-41.89-4.66%4.49%7.70%-128.58%

* Basic Materials Sector Average

Performance Comparison

-50%0%50%100%GB:50GPGB:ELMGB:JMATGB:SYNTGB:VCTDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
GB:50GP and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:50GPCroda International (50GP)77.004.776.61%
GB:ELMElementis plc187.2025.8416.01%
GB:JMATJohnson Matthey (Uk)2388.00270.5412.78%
GB:SYNTSynthomer plc111.0058.70112.24%
GB:VCTVictrex plc903.00319.2354.68%
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