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Akzo Nobel (AKZOY)
OTHER OTC:AKZOY
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Akzo Nobel
(OTC:AKZOY)
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Rating:62Neutral
Price Target:
$24.00
▲(4.99% Upside)
Akzo Nobel's stock score is primarily influenced by its stable financial performance and positive technical indicators. However, the high P/E ratio suggests overvaluation, which is a significant risk factor. The strong dividend yield provides some offsetting benefit.
Positive Factors
Merger Synergies
The merger with Axalta is expected to create significant synergies, enhancing operational efficiency and profitability, which can strengthen Akzo Nobel's competitive position and market reach long-term.
Cash Flow Generation
Improved cash flow generation enhances financial flexibility, allowing Akzo Nobel to invest in growth opportunities, reduce debt, and return value to shareholders, supporting long-term sustainability.
Sustainability Commitment
Akzo Nobel's focus on sustainable and innovative solutions aligns with global trends towards eco-friendly products, potentially driving demand and market share growth in the long term.
Negative Factors
High Leverage
Significant leverage poses financial risks, potentially limiting Akzo Nobel's ability to invest in growth and weather economic downturns, impacting long-term financial health.
Low Profitability
Low profitability indicates challenges in converting revenue into profit, which could hinder Akzo Nobel's ability to fund operations and growth initiatives, affecting long-term viability.
Declining Margins
Declining margins suggest operational inefficiencies or rising costs, which could erode competitive advantage and profitability, impacting Akzo Nobel's long-term financial performance.
Akzo Nobel (AKZOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.98B
Dividend Yield3.1%
Average Volume (3M)11.20K
Price to Earnings (P/E)246.2
Beta (1Y)0.46
Revenue Growth-0.12%
EPS Growth-91.96%
CountryUS
Employees34,100
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.22
Shares Outstanding513,130,100
10 Day Avg. Volume0
30 Day Avg. Volume11,201
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)2.16
Price to Sales (P/S)0.92
P/FCF Ratio26.89
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit3.43
Enterprise Value/Ebitda15.91
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
Akzo Nobel Business Overview & Revenue Model
Company DescriptionAkzo Nobel N.V. engages in the production and sale of paints and coatings worldwide. It offers decorative paints, including paints, lacquers, and varnishes; and a range of mixing machines and color concepts for the building and renovation industry, as well as specialty coatings for metal, wood, and other building materials. The company also provides performance coatings that protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. It offers its products primarily under Dulux, International, Sikkens, and Interpon brands. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.
How the Company Makes MoneyAkzo Nobel generates revenue primarily through the sale of its paints, coatings, and specialty chemicals. The company's revenue model is anchored in several key streams: the decorative paints segment, which caters to both professionals and consumers; the performance coatings segment, which supplies coatings for industrial applications and protective finishes; and the specialty chemicals segment, which provides chemical products for a wide range of applications. Additionally, Akzo Nobel benefits from strong partnerships with industry players, strategic collaborations, and a robust distribution network that enhances its market presence. Factors contributing to its earnings include the growing demand for sustainable products, innovations in product development, and an expanding global footprint.
Akzo Nobel Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance for AkzoNobel with strategic achievements and operational efficiencies driving EBITDA margin expansion and strong cash flows. However, challenges persist in volume growth due to macroeconomic uncertainties and market-specific issues, particularly in North America and Turkey.Q2-2025 Updates
Positive Updates
EBITDA Margin Expansion
Adjusted EBITDA margin expanded by 60 basis points to 15%, driven by pricing discipline and structural benefits from SG&A and industrial programs.
Strategic Portfolio Action
AkzoNobel successfully signed the sale of AkzoNobel India for EUR 1.4 billion at 25x 2025 EBITDA, retaining a royalty stream for coatings, and expecting EUR 900 million in net cash proceeds.
Operational Efficiency Achievements
The SG&A program has been fully implemented, delivering over EUR 150 million in recurring savings, with additional potential identified.
Positive Cash Flow
Generated EUR 162 million of free cash flow in Q2 despite EUR 49 million cash out related to restructuring activities.
Strong Performance in Specific Segments
Marine and Protective coatings delivered mid-single-digit volume growth, and Decorative Paints in China rebounded with high single-digit growth.
Negative Updates
Negative Volume Impact
Volumes declined by 1% year-on-year, primarily due to continued softness in the North American coatings markets.
Foreign Exchange Headwinds
Foreign exchange rates resulted in a 5% negative impact on revenue, causing a total revenue decline of 6%.
Market Challenges in Turkey
The Turkish deco market is experiencing significant softness, with market declines in double digits.
Pressure in North American Refinish Market
North American Vehicle Refinish volumes are down due to reduced consumer spending and increased insurance premiums.
Company Guidance
During AkzoNobel's Q2 2025 results call, the company provided several key metrics and updates. AkzoNobel reported a 40 basis point year-on-year increase in gross margin due to price versus raw materials margin expansion, aligning with their plan. The EBITDA margin expanded by 60 basis points to 15%, supported by significantly lower operational expenses from efficiency actions. Despite a 1% volume decline, AkzoNobel achieved a solid adjusted EBITDA of EUR 393 million, or EUR 417 million when adjusted for foreign exchange impacts. The company generated EUR 162 million in free cash flow, despite EUR 49 million cash outflows related to restructuring. AkzoNobel also successfully signed the sale of its Indian businesses for EUR 1.4 billion, valuing at 25x 2025 EBITDA, with a retained royalty stream for coatings. The SG&A program completed implementation, delivering over EUR 150 million in recurring savings, while industrial transformation continues with five site closures announced, expected to yield further operational efficiencies. The company maintained its full-year guidance at an adjusted EBITDA of EUR 1.48 billion, factoring in foreign exchange impacts, with expectations of further profitability expansion and a reduction in leverage to around 2.3x by year-end.Akzo Nobel Financial Statement Overview
Summary
Akzo Nobel shows stable revenue growth and strong gross margins, but faces challenges in profitability and leverage. The company's cash flow position has improved, providing a buffer against financial uncertainties.Income Statement
Akzo Nobel's income statement shows a modest revenue growth rate of 2.93% in the TTM, indicating a stable but slow growth trajectory. The gross profit margin is healthy at 39.78%, but the net profit margin is low at 0.56%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins have declined compared to previous years, suggesting potential operational inefficiencies or increased costs.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 1.36, indicating significant leverage, which could pose financial risks. The return on equity is low at 1.34%, suggesting limited profitability relative to shareholder equity. However, the equity ratio is reasonable, showing a balanced asset structure.60
Neutral
Cash Flow
Cash flow analysis shows a positive free cash flow growth rate of 19.41% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio is 0.18, indicating moderate cash flow efficiency. The free cash flow to net income ratio is 0.63, suggesting that a significant portion of net income is converted into free cash flow.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.40B | 10.71B | 10.67B | 10.85B | 9.59B | 8.53B |
| Gross Profit | 4.14B | 4.34B | 4.03B | 3.92B | 3.85B | 3.79B |
| EBITDA | 890.92M | 1.40B | 1.33B | 1.05B | 1.53B | 1.33B |
| Net Income | 58.00M | 542.00M | 442.00M | 352.00M | 829.00M | 630.00M |
Balance Sheet | ||||||
| Total Assets | 13.94B | 14.25B | 14.56B | 14.74B | 13.88B | 13.18B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 1.47B | 1.78B | 1.79B | 1.21B | 1.86B |
| Total Debt | 5.37B | 5.37B | 5.56B | 5.88B | 3.55B | 2.89B |
| Total Liabilities | 9.78B | 9.43B | 10.01B | 10.19B | 8.24B | 7.23B |
| Stockholders Equity | 3.94B | 4.57B | 4.32B | 4.33B | 5.42B | 5.75B |
Cash Flow | ||||||
| Free Cash Flow | 527.81M | 367.00M | 840.00M | -29.00M | 317.00M | 962.00M |
| Operating Cash Flow | 842.54M | 673.00M | 1.13B | 263.00M | 605.00M | 1.22B |
| Investing Cash Flow | -4.00M | -132.00M | -144.00M | -1.09B | -134.00M | -427.00M |
| Financing Cash Flow | -1.35B | -684.00M | -827.00M | 1.14B | -974.00M | -353.00M |
Akzo Nobel Technical Analysis
Positive
22.86
Price Trends
22.44
Positive
22.76
Positive
22.46
Positive
Market Momentum
0.22
Positive
55.03
Neutral
83.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKZOY, the sentiment is Positive. The current price of 22.86 is below the 20-day moving average (MA) of 23.15, above the 50-day MA of 22.44, and above the 200-day MA of 22.46, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 83.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKZOY.
Akzo Nobel Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $87.91B | 34.57 | 59.39% | 0.98% | 0.96% | 1.96% | |
71 Outperform | $13.70B | 20.60 | 22.72% | 1.96% | 3.09% | 12.25% | |
71 Outperform | $7.04B | 29.49 | 9.40% | 1.25% | 3.87% | -10.30% | |
68 Neutral | $25.95B | 16.66 | ― | 2.71% | -12.98% | -11.34% | |
62 Neutral | $11.98B | 246.24 | 1.03% | 3.10% | -0.12% | -91.96% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $18.40B | -24.11 | -0.46% | 1.74% | 2.42% | -196.54% |
* Basic Materials Sector Average
AKZOY
Akzo Nobel
23.29
5.40
30.21%
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116.46
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6.74%
RPM
RPM International
107.51
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SHW
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356.36
1.88
0.53%
ESI
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29.59
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19.80%
DD
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44.43
13.28
42.63%
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.