Akzo Nobel (AKZOY) AI Stock Analysis

• Market Cap: $12.04B
• Dividend Yield: 4.95%
• Average Volume (3M): 3.65K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 0.49
• Revenue Growth: -0.68%
• EPS Growth: -12.26%
• Country: US
• Employees: 34,100
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 0.36
• Shares Outstanding: 512,359,000
• 10 Day Avg. Volume: 4,695
• 30 Day Avg. Volume: 3,647
• PEG Ratio: -1.61
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.00
• Price Target Upside: 7.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $25.00 ▲(7.39%Upside)

Akzo Nobel's stock is bolstered by strong technical indicators and effective cost management strategies, which have maintained stable profitability despite cash flow challenges. While the earnings call provided a mixed outlook, the company's strategic efforts in cost reduction and long-term funding support a positive view. However, valuation concerns and macroeconomic headwinds suggest a cautious approach.

Akzo Nobel Business Overview & Revenue Model

Company Description

Akzo 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 Money

Akzo 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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.68B	10.71B	10.67B	10.85B	9.59B	8.53B
Gross Profit	4.30B	4.34B	4.03B	3.92B	3.85B	3.79B
EBITDA	1.27B	1.40B	1.33B	1.05B	1.50B	1.34B
Net Income	468.00M	542.00M	442.00M	352.00M	829.00M	630.00M
Balance Sheet
Total Assets	14.85B	14.25B	14.56B	14.74B	13.88B	13.18B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.47B	1.78B	1.79B	1.21B	1.86B
Total Debt	0.00	5.37B	5.56B	5.88B	3.55B	2.89B
Total Liabilities	9.99B	9.43B	10.01B	10.19B	8.24B	7.23B
Stockholders Equity	4.62B	4.57B	4.32B	4.33B	5.42B	5.75B
Cash Flow
Free Cash Flow	395.00M	367.00M	840.00M	-29.00M	317.00M	962.00M
Operating Cash Flow	731.00M	673.00M	1.13B	263.00M	605.00M	1.22B
Investing Cash Flow	-415.00M	-132.00M	-144.00M	-1.09B	-134.00M	-427.00M
Financing Cash Flow	368.00M	-684.00M	-827.00M	1.14B	-974.00M	-353.00M

Akzo Nobel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 23.28 is above the 20-day moving average (MA) of 23.07, above the 50-day MA of 22.60, and above the 200-day MA of 20.88, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 54.04 is Neutral, neither overbought nor oversold. The STOCH value of 48.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKZOY.

Akzo Nobel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXTA	76 Outperform	$6.67B	15.04	23.59%	―	0.96%	82.78%
SHW	74 Outperform	$86.69B	32.73	70.22%	0.91%	0.26%	12.82%
AKZOY	69 Neutral	$12.04B	23.91	10.13%	4.95%	-0.68%	-12.26%
EMN	69 Neutral	$9.27B	10.22	16.16%	4.14%	2.78%	1.50%
SQM	69 Neutral	$10.73B	17.89	12.13%	0.47%	-29.03%	52.74%
PPG	64 Neutral	$26.63B	19.87	18.47%	2.32%	-7.67%	-0.58%
Sector *	44 Neutral	C$979.30M	-6.66	-13.73%	2.43%	17.55%	-32.57%