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Akzo Nobel (AKZOY)
OTHER OTC:AKZOY
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Akzo Nobel
(OTC:AKZOY)
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Rating:69Neutral
Price Target:
$26.00
▲(9.89% Upside)
Akzo Nobel's strong financial performance, particularly its profitability and debt-free balance sheet, is a key strength. The earnings call provided positive strategic insights, although technical indicators and valuation suggest caution. Cash flow challenges and market-specific issues also weigh on the overall score.
Akzo Nobel (AKZOY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.15B
Dividend Yield3.14%
Average Volume (3M)5.24K
Price to Earnings (P/E)26.8
Beta (1Y)0.52
Revenue Growth-0.96%
EPS Growth-28.68%
CountryUS
Employees34,100
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.39
Shares Outstanding513,130,100
10 Day Avg. Volume6,059
30 Day Avg. Volume5,238
Financial Highlights & Ratios
PEG Ratio2.40
Price to Book (P/B)6.47
Price to Sales (P/S)2.76
P/FCF Ratio80.70
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue1.64
Enterprise Value/Gross Profit4.12
Enterprise Value/Ebitda13.88
Forecast
1Y Price Target
$26.00Price Target Upside9.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Akzo Nobel Business Overview & Revenue Model
Company DescriptionAkzoNobel N.V. is a Dutch multinational company specializing in paints and coatings, as well as specialty chemicals. Headquartered in Amsterdam, the company operates globally across various sectors including automotive, aerospace, marine, and decorative paints. AkzoNobel offers a wide range of products, including protective coatings, marine coatings, and industrial coatings, along with a diverse portfolio of decorative paints and performance coatings that cater to both consumer and industrial markets.
How the Company Makes MoneyAkzoNobel generates revenue primarily through the sale of its coatings and specialty chemicals, which are sold to a variety of industries including automotive, construction, and consumer goods. The company has two main segments: Paints & Coatings and Specialty Chemicals. Key revenue streams include decorative paints, performance coatings, and industrial coatings, each serving distinct markets. AkzoNobel also benefits from strategic partnerships and collaborations with other companies, enhancing its market presence and innovation capabilities. Additionally, the firm invests in research and development to create sustainable products, which helps to attract environmentally conscious consumers and businesses, further solidifying its revenue base.
Akzo Nobel Earnings Call Summary
Earnings Call Date:Oct 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 03, 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 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 that need attention to sustain 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 | 10.53B | 10.71B | 10.67B | 10.85B | 9.59B | 8.53B |
| Gross Profit | 4.20B | 4.34B | 4.03B | 3.92B | 3.85B | 3.79B |
| EBITDA | 1.25B | 1.40B | 1.33B | 1.05B | 1.50B | 1.34B |
| Net Income | 415.00M | 542.00M | 442.00M | 352.00M | 829.00M | 630.00M |
Balance Sheet | ||||||
| Total Assets | 14.17B | 14.25B | 14.56B | 14.74B | 13.88B | 13.18B |
| Cash, Cash Equivalents and Short-Term Investments | 1.57B | 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 | 9.79B | 9.43B | 10.01B | 10.19B | 8.24B | 7.23B |
| Stockholders Equity | 4.17B | 4.57B | 4.32B | 4.33B | 5.42B | 5.75B |
Cash Flow | ||||||
| Free Cash Flow | 480.00M | 367.00M | 840.00M | -29.00M | 317.00M | 962.00M |
| Operating Cash Flow | 814.00M | 673.00M | 1.13B | 263.00M | 605.00M | 1.22B |
| Investing Cash Flow | -261.00M | -132.00M | -144.00M | -1.09B | -134.00M | -427.00M |
| Financing Cash Flow | -24.00M | -684.00M | -827.00M | 1.14B | -974.00M | -353.00M |
Akzo Nobel Technical Analysis
Positive
23.66
Price Trends
23.35
Positive
22.97
Positive
21.70
Positive
Market Momentum
0.03
Negative
53.72
Neutral
92.65
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 23.66 is above the 20-day moving average (MA) of 23.51, above the 50-day MA of 23.35, and above the 200-day MA of 21.70, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 92.65 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.29B | 26.27 | 9.62% | 1.23% | 5.41% | 23.44% | |
70 Neutral | $82.59B | 32.84 | 62.43% | 0.91% | 0.31% | 2.66% | |
69 Neutral | $14.36B | 20.91 | 24.05% | 1.83% | 3.09% | 12.25% | |
69 Neutral | $12.15B | 26.81 | 9.39% | 3.14% | -0.96% | -28.68% | |
65 Neutral | $33.90B | ― | 0.31% | 1.98% | 4.55% | -130.25% | |
63 Neutral | $23.06B | 18.12 | 16.88% | 2.63% | -10.59% | -7.79% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
AKZOY
Akzo Nobel
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11.13%
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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.