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Akzo Nobel (AKZOY)
OTHER OTC:AKZOY
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Akzo Nobel
(OTC:AKZOY)
Rating:59Neutral
Price Target:
$23.00
▲(10.26%Upside)
Akzo Nobel (AKZOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.69B
Dividend Yield3.57%
Average Volume (3M)4.56K
Price to Earnings (P/E)23.4
Beta (1Y)0.51
Revenue Growth-0.96%
EPS Growth-28.68%
CountryUS
Employees34,100
SectorBasic Materials
Sector Strength54
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.44
Shares Outstanding513,130,100
10 Day Avg. Volume2,747
30 Day Avg. Volume4,563
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue1.62
Enterprise Value/Gross Profit4.02
Enterprise Value/Ebitda13.55
Forecast
1Y Price Target
$25.00Price Target Upside19.85% Upside
Rating ConsensusHold
Number of Analyst Covering0
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 and coatings products. In the Decorative Paints segment, the company earns money by offering a broad range of interior and exterior paints and coatings to consumers and professional painters. This includes well-known brands like Dulux and Sikkens. In the Performance Coatings segment, revenue is derived from selling specialized coatings for industries such as automotive, aerospace, marine, and protective coatings. Akzo Nobel also engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Additionally, the company focuses on innovation and sustainable solutions, which attract environmentally conscious consumers and businesses, further driving sales. Akzo Nobel's global presence supports a diversified revenue stream across different regions and market segments.
Akzo Nobel Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: -9.89%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with notable achievements such as margin improvement, strategic asset sales, and cash flow generation. However, these were tempered by volume declines, foreign exchange challenges, and regional market weaknesses, especially in North America and Turkey.Q2-2025 Updates
Positive Updates
Gross Margin and EBITDA Improvement
Gross margin was up 40 basis points year-on-year, and EBITDA increased by 60 basis points due to lower operating expenses from efficiency actions.
Sale of Indian Businesses
Most of the Indian businesses were sold at 25x 2025 EBITDA for EUR 1.4 billion, maintaining a royalty stream for coatings.
Free Cash Flow Generation
Generated EUR 162 million of free cash flow despite EUR 49 million in restructuring-related cash outs.
SG&A Savings
SG&A program completed with more than EUR 150 million in recurring savings, with potential for further efficiency improvements.
China Volume Rebound
Volumes rebounded strongly in China with high single-digit growth, supported by improving demand and pricing stability.
Negative Updates
Volume Decline
Overall volumes declined by 1% year-on-year, with significant softness in North American coatings markets.
Foreign Exchange Headwinds
ForEx had a 5% negative impact on revenue, contributing to a total revenue decline of 6% in the quarter.
North American Market Weakness
Ongoing uncertainty in North America, with automotive and refinish demand under pressure.
Challenges in Turkey
Volumes impacted by adjustments in commercial policy and an overall market slowdown in Turkey.
Company Guidance
During the AkzoNobel Q2 2025 results call, CEO Greg Poux-Guillaume highlighted several metrics and strategic moves amidst challenging market conditions. The company achieved a 40 basis point increase in gross margin year-on-year and a 60 basis point rise in EBITDA margin, reaching 15%. Despite a 1% decline in volumes, AkzoNobel generated EUR 162 million in free cash flow, overcoming a EUR 49 million cash out related to restructuring. The sale of Indian businesses for EUR 1.4 billion at 25x 2025 EBITDA was significant, while maintaining a royalty stream for coatings. Organic sales remained flat, with pricing up 2% but a 1% negative mix impact. The adjusted EBITDA was EUR 393 million, or EUR 417 million when adjusted for foreign exchange (ForEx), which had a 5% negative impact on revenue. The first half saw net OpEx savings of EUR 35 million, with an adjusted EBITDA of EUR 750 million, or EUR 781 million corrected for ForEx. AkzoNobel's adjusted leverage ratio stood at 2.9x, expected to decrease to 2.3x by year-end. The company maintained its full-year EBITDA guidance at EUR 1.48 billion, despite ongoing ForEx challenges, emphasizing pricing discipline and structural cost reductions as key drivers for achieving a mid-term EBITDA margin target above 16%.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. However, cash flow management poses challenges, with a significant decline in operating cash flow affecting free cash flow.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.71B | 10.67B | 10.85B | 9.59B | 8.53B |
| Gross Profit | 4.34B | 4.03B | 3.92B | 3.85B | 3.79B |
| EBITDA | 1.40B | 1.33B | 1.05B | 1.50B | 1.34B |
| Net Income | 542.00M | 442.00M | 352.00M | 829.00M | 630.00M |
Balance Sheet | |||||
| Total Assets | 14.25B | 14.56B | 14.74B | 13.88B | 13.18B |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 1.78B | 1.79B | 1.21B | 1.86B |
| Total Debt | 5.37B | 5.56B | 5.88B | 3.55B | 2.89B |
| Total Liabilities | 9.43B | 10.01B | 10.19B | 8.24B | 7.23B |
| Stockholders Equity | 4.57B | 4.32B | 4.33B | 5.42B | 5.75B |
Cash Flow | |||||
| Free Cash Flow | 367.00M | 840.00M | -29.00M | 317.00M | 962.00M |
| Operating Cash Flow | 673.00M | 1.13B | 263.00M | 605.00M | 1.22B |
| Investing Cash Flow | -132.00M | -144.00M | -1.09B | -134.00M | -427.00M |
| Financing Cash Flow | -684.00M | -827.00M | 1.14B | -974.00M | -353.00M |
Akzo Nobel Technical Analysis
Negative
20.86
Price Trends
22.70
Negative
21.73
Negative
20.87
Negative
Market Momentum
-0.47
Positive
27.81
Positive
0.98
Positive
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 20.86 is below the 20-day moving average (MA) of 22.63, below the 50-day MA of 22.70, and below the 200-day MA of 20.87, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 27.81 is Positive, neither overbought nor oversold. The STOCH value of 0.98 is Positive, 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.03B | 13.67 | 22.09% | ― | -1.01% | 50.58% | |
72 Outperform | $85.62B | 34.10 | 62.43% | 0.88% | 0.31% | 2.66% | |
64 Neutral | $10.19B | 17.02 | 12.13% | 0.47% | -29.03% | 52.74% | |
63 Neutral | $6.79B | 8.26 | 14.52% | 5.61% | 1.60% | -3.97% | |
59 Neutral | $10.69B | 23.44 | 9.39% | 3.57% | -0.96% | -28.68% | |
59 Neutral | HK$16.65B | 4.27 | -5.31% | 4.61% | -3.83% | -62.19% | |
55 Neutral | $23.57B | 18.52 | 16.88% | 2.60% | -10.59% | -7.79% |
* Basic Materials Sector Average
Performance Comparison
AKZOY
Akzo Nobel
20.86
1.82
9.56%
EMN
Eastman Chemical
60.78
-31.27
-33.97%
PPG
PPG Industries
105.00
-11.34
-9.75%
SHW
Sherwin-Williams Company
347.85
6.55
1.92%
SQM
Sociedad Quimica Y Minera SA
36.38
2.05
5.97%
AXTA
Axalta Coating Systems
28.68
-5.36
-15.75%
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.