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Akzo Nobel (AKZOY)
:AKZOY
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Akzo Nobel
(OTC:AKZOY)
64Neutral
Akzo Nobel (AKZOY) vs. S&P 500 (SPY)
Market Cap
$10.07B
Dividend Yield2.9%
Average Volume (3M)6.61K
Price to Earnings (P/E)17.2
Beta (1Y)0.47
Revenue Growth0.45%
EPS Growth22.77%
CountryUS
Employees33,751
SectorBasic Materials
Sector Strength59
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.15
Shares Outstanding512,359,000
10 Day Avg. Volume19,818
30 Day Avg. Volume6,606
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)N/A
Price to Sales (P/S)0.96
Price to Cash Flow (P/CF)8.90
P/FCF Ratio12.90
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
Akzo Nobel Business Overview & Revenue Model
Company DescriptionAkzo Nobel N.V., operating under the brand name AkzoNobel, is a leading global paints and coatings company headquartered in Amsterdam, Netherlands. The company operates across two primary business segments: Decorative Paints and Performance Coatings. AkzoNobel's Decorative Paints division produces a wide range of interior and exterior paints and coatings, while the Performance Coatings segment offers protective coatings and specialty finishes for industries such as automotive, marine, and aerospace. The company is recognized for its commitment to sustainability and innovation in the development of its products.
How the Company Makes MoneyAkzoNobel generates revenue primarily through the sale of its paint and coating products to both consumers and industrial customers. The Decorative Paints segment contributes significantly to its earnings by offering products through retail and professional channels, catering to residential and commercial markets. Performance Coatings, meanwhile, serves various industries with specialized coatings solutions, including automotive and aerospace finishes, wood coatings, and powder coatings. AkzoNobel's revenue model is bolstered by its global reach, strategic partnerships, and focus on research and development, allowing it to maintain a competitive edge in the paints and coatings industry. The company also benefits from its strong brand portfolio, which includes well-known names like Dulux, Sikkens, and International, enhancing its market presence and customer loyalty.
Akzo Nobel Financial Statement Overview
Summary
Akzo Nobel demonstrates solid financial performance with strong profitability margins and a stable balance sheet, marked by zero debt, enhancing financial stability. Despite positive income growth, cash flow management poses challenges with a significant decline in free cash flow, which could impact future growth.Income Statement
Akzo Nobel's income statement shows a stable revenue base with a slight growth from 2023 to 2024. The gross profit margin for 2024 is strong at approximately 40.5%, indicating effective cost management. The net profit margin improved to about 5.1% in 2024, up from 4.1% in 2023, reflecting enhanced profitability. However, EBIT and EBITDA margins have slightly decreased, suggesting some operational cost pressures.72
Positive
Balance Sheet
The balance sheet reflects a solid equity base with a total equity ratio of approximately 32.1% for 2024, indicating moderate leverage. The company has eliminated its total debt in 2024, significantly improving its financial stability compared to previous years. Return on Equity improved to about 11.8% in 2024, showcasing better profitability for shareholders. However, the reduction in total assets and equity from prior years indicates potential downsizing or asset divestment.68
Positive
Cash Flow
Akzo Nobel's cash flow statement shows a decline in operating cash flow from 2023 to 2024, impacting free cash flow, which decreased significantly by approximately 56.3%. The operating cash flow to net income ratio has fallen, pointing to a potential challenge in cash generation relative to earnings. However, free cash flow remains positive, reflecting some resilience in managing capital expenditures.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.19B | 10.71B | 10.67B | 10.85B | 9.59B | 8.53B | Gross Profit |
| 3.85B | 4.34B | 4.03B | 3.92B | 3.85B | 3.79B | EBIT |
| 868.00M | 917.00M | 1.03B | 708.00M | 1.12B | 963.00M | EBITDA |
| 1.27B | 1.31B | 1.33B | 1.08B | 1.53B | 1.23B | Net Income Common Stockholders |
| 611.00M | 542.00M | 442.00M | 352.00M | 829.00M | 630.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.47B | 1.47B | 1.78B | 1.79B | 1.21B | 1.86B | Total Assets |
| 14.25B | 14.25B | 14.56B | 14.74B | 13.88B | 13.18B | Total Debt |
| 0.00 | 0.00 | 5.56B | 5.88B | 3.55B | 2.89B | Net Debt |
| -1.30B | -1.30B | 4.05B | 4.42B | 2.40B | 1.28B | Total Liabilities |
| 9.43B | 9.43B | 10.01B | 10.19B | 8.24B | 7.23B | Stockholders Equity |
| 4.57B | 4.57B | 4.32B | 4.33B | 5.42B | 5.75B |
| Cash Flow | Free Cash Flow | ||||
| 21.00M | 367.00M | 840.00M | -29.00M | 317.00M | 962.00M | Operating Cash Flow |
| 314.00M | 673.00M | 1.13B | 263.00M | 605.00M | 1.22B | Investing Cash Flow |
| -1.29B | -132.00M | -144.00M | -1.09B | -134.00M | -427.00M | Financing Cash Flow |
| 765.00M | -684.00M | -827.00M | 1.14B | -974.00M | -353.00M |
Akzo Nobel Technical Analysis
Negative
19.66
Price Trends
20.63
Negative
20.29
Negative
20.68
Negative
Market Momentum
-0.47
Negative
46.12
Neutral
87.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKZOY, the sentiment is Negative. The current price of 19.66 is below the 20-day moving average (MA) of 19.94, below the 50-day MA of 20.63, and below the 200-day MA of 20.68, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 87.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AKZOY.
Akzo Nobel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.74B | 17.38 | 21.49% | ― | 1.77% | 47.48% | |
71 Outperform | $8.88B | 10.02 | 16.11% | 4.27% | 1.91% | 2.94% | |
70 Outperform | $81.06B | 30.54 | 69.05% | 0.88% | 0.20% | 14.31% | |
67 Neutral | $22.71B | 16.78 | 19.13% | 2.71% | -4.59% | 11.09% | |
64 Neutral | $10.07B | 17.17 | 12.37% | 2.90% | 0.45% | 22.77% | |
49 Neutral | $9.77B | ― | -7.56% | 3.91% | -39.35% | -120.09% | |
48 Neutral | $1.91B | -1.65 | -22.29% | 3.86% | 0.68% | -27.46% |
* Basic Materials Sector Average
Performance Comparison
AKZOY
Akzo Nobel
19.66
-1.98
-9.15%
EMN
Eastman Chemical
79.29
-14.30
-15.28%
PPG
PPG Industries
101.78
-25.84
-20.25%
SHW
Sherwin-Williams Company
331.96
32.10
10.70%
SQM
Sociedad Quimica Y Minera SA
35.30
-9.36
-20.96%
AXTA
Axalta Coating Systems
31.53
0.34
1.09%
Akzo Nobel Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -5.62% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company that is managing to grow and improve margins in a challenging market environment. However, the increase in net debt and weak demand in key markets like China present ongoing challenges. The strategic initiatives and cost reductions are positive moves that are expected to support future growth.Highlights
Fourth Consecutive Quarter of Volume Growth
Volumes increased by 1% in Q3, marking the fourth consecutive quarter of growth, despite mixed market conditions.
Gross Margin Improvement
Adjusted gross margin expanded by 60 basis points in Q3 and 180 basis points year-to-date.
SG&A Cost Reduction Program
Announced a program to cut 2,000 positions globally, primarily in Europe, aiming for annualized savings of EUR 120 million to EUR 150 million.
Strategic Review of South Asian Portfolio
Initiated a strategic review of the decorative paints business in South Asia, particularly focusing on India, to explore consolidation opportunities.
Strong Performance in Powder Coatings
Achieved mid-single-digit growth in Powder Coatings despite flat markets, with strong performance expected to continue in Q4.
Solid Free Cash Flow Generation
Delivered solid free cash flow of EUR 217 million in Q3, despite temporary high working capital.
Lowlights
Increased Net Debt-to-EBITDA Ratio
Net debt-to-EBITDA ratio increased to 3x from the prior quarter, primarily due to temporary elevated working capital.
Weak Demand in China
Continued weak demand in China due to a challenging real estate market, with Deco volumes significantly down.
Flat Decorative Paints Volumes in EMEA
Q3 volumes remained flat in the EMEA region for decorative paints, with robust performance in some areas offset by weaker demand in others.
Softness in Automotive Market
Automotive and Specialty volumes were slightly lower due to a clear slowdown in the automotive market.
Inventory Levels Remain Elevated
Working capital as a percentage of revenue stood at 17.7%, influenced by elevated inventory levels.
Company Guidance
In the Q3 2024 earnings call, Akzo Nobel provided guidance emphasizing their strategic and financial metrics. The company reported a 1% increase in volumes, marking the fourth consecutive quarter of volume growth, with an adjusted gross margin expansion of 60 basis points in Q3 and 180 basis points year-to-date. Adjusted EBITDA before hyperinflation accounting was EUR 400 million, aligning with guidance and resulting in an EBITDA margin of 15%. The net debt-to-EBITDA ratio rose to 3x due to temporarily elevated working capital. Akzo Nobel reaffirmed its cost-cutting measures, projecting EUR 25 million in benefits for the current year and EUR 70 million for 2025, with overall savings expected to surpass EUR 250 million. The company also announced a strategic review of its South Asia portfolio, targeting its decorative paints business, with an intent to focus capital allocation on core coatings markets. For the full year 2024, Akzo Nobel anticipates achieving adjusted EBITDA growth to around EUR 1.5 billion, with a year-end net debt-to-EBITDA ratio of 2.7x.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.