Croda International PLC (GB:49GP)
LSE:49GP
Top Page
Croda International
(LSE:49GP)
Select Model
Select Model
Rating:61Neutral
Price Target:
92.00 p
▲(5.75% Upside)
Action:ReiteratedDate:02/25/26
The score is held back primarily by weakened reported profitability and very overextended technical momentum (RSI near 100). Offsetting factors include resilient cash generation, manageable leverage, and a constructive earnings-call outlook with clear margin and savings targets, plus a high dividend yield that supports total-return appeal.
Positive Factors
Resilient cash generation
A strong free cash flow rebound provides durable funding for capex, dividends and the GBP100m transformation programme without excessive external finance. Reliable cash conversion cushions cyclical earnings, supports deleveraging targets and enables strategic reinvestment over the next 2–6 months.
Negative Factors
Large exceptional charges & impairments
Material non‑cash impairments and one-offs reflect prior investment and footprint choices and have sharply reduced reported profitability. Continued optimization may prompt further charges, eroding reported earnings and capital cushions and complicating comparability of future results.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient cash generation
A strong free cash flow rebound provides durable funding for capex, dividends and the GBP100m transformation programme without excessive external finance. Reliable cash conversion cushions cyclical earnings, supports deleveraging targets and enables strategic reinvestment over the next 2–6 months.
Read all positive factors
Croda International (49GP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.19B
Dividend Yield7.59%
Average Volume (3M)173.00
Price to Earnings (P/E)60.7
Beta (1Y)<0.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees6,027
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)N/A
Shares Outstanding499,000
10 Day Avg. Volume516
30 Day Avg. Volume173
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)1.72
Price to Sales (P/S)2.21
P/FCF Ratio21.91
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
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Croda International Business Overview & Revenue Model
Company Description
Croda International Plc creates, makes, and sells specialty chemicals in Europe, the Middle East, Africa, North America, Asia, and Latin America. It operates through four segments: Consumer Care, Life Sciences, Performance Technologies, and Indust...
How the Company Makes Money
Croda International generates revenue primarily through the sale of specialty chemicals and ingredients across its diverse business sectors. The company's revenue model is built on providing high-value, customized solutions to its clients, which i...
Croda International Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call presented a mix of clear operational progress and structural improvement (7% revenue growth, adjusted profits +8%, improved free cash flow, margin recovery and a defined 2028 financial framework) alongside material one-off and non-cash setbacks (GBP 150m exceptional charges, impairments including the Lamar site, and some sub-segment weaknesses). Management emphasized transformation momentum, SKU and procurement rationalization, and focused growth initiatives (innovation, customer segmentation, geographic rebalancing). Given the balance of substantive underlying operational improvements and a cautious but credible plan to deliver further savings and margin expansion — tempered by significant impairments and near-term volatility in parts of Pharma and Industrial Specialties — the overall tone is constructive but appropriately cautious.Positive Updates
Revenue Growth and Scale
Group sales rose 7% in constant currency to GBP 1.7bn for FY2025, with fourth-quarter sales up 5% CC. Consumer Care grew 8% for the year (Q4 +9%) and Life Sciences grew 8% (Q4 +8%).
Negative Updates
Large Exceptional Charges Impacting Reported Profit
Reported profit before tax fell to GBP 91m from an adjusted PBT of GBP 276m after GBP 150m of exceptional charges in FY2025 (largely non-cash impairments and one-off items).
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Scale
Group sales rose 7% in constant currency to GBP 1.7bn for FY2025, with fourth-quarter sales up 5% CC. Consumer Care grew 8% for the year (Q4 +9%) and Life Sciences grew 8% (Q4 +8%).
Read all positive updates
Company Guidance
Guidance: management expects average organic sales growth of 3–6% to 2028 (Consumer Care 3–6%, Life Sciences 4–7%, Industrial Specialties broadly flat), with Q1 sales similar to Q1 2025 and a roughly 50/50 H1/H2 split; adjusted operating profit is expected in line with market expectations and adjusted operating margin to increase from 17.4% in 2025 to >20% by FY2028 (EBITDA margin >25%), with volume growth moderating from c.10% in 2025 and price/mix turning positive. Financial targets include GBP100m annualized transformation savings by 2028 (GBP28m delivered in 2025; c. GBP75m to go) at a cash cost of c. GBP80m, a working capital reduction of GBP50m, free cash flow conversion >12% of sales, CapEx around GBP108m (~6% of sales), net debt ~GBP524m (leverage 1.3x EBITDA; target 1–2x), ROIC >10% by 2028, and a dividend policy targeting 40–50% of adjusted earnings (FY25 dividend 111p, final 63p); FY25 actuals to note: sales GBP1.7bn (+7% cc), adjusted operating profit GBP295m (+8%), adjusted PBT GBP276m (+8%), EBITDA GBP397m (+5%), and free cash flow GBP162m.Croda International Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.70B | 1.63B | 1.69B | 2.09B | 1.89B |
| Gross Profit | 608.70M | 733.90M | 730.00M | 864.90M | 825.60M |
| EBITDA | 380.70M | 374.50M | 388.50M | 924.80M | 549.40M |
| Net Income | 62.00M | 158.50M | 171.00M | 649.30M | 320.80M |
Balance Sheet | |||||
| Total Assets | 3.41B | 3.51B | 3.58B | 3.61B | 3.29B |
| Cash, Cash Equivalents and Short-Term Investments | 172.80M | 166.80M | 172.50M | 320.60M | 112.80M |
| Total Debt | 696.60M | 699.10M | 710.10M | 615.80M | 936.00M |
| Total Liabilities | 1.21B | 1.21B | 1.21B | 1.18B | 1.53B |
| Stockholders Equity | 2.19B | 2.28B | 2.35B | 2.42B | 1.75B |
Cash Flow | |||||
| Free Cash Flow | 171.80M | 137.60M | 156.80M | 160.90M | 190.50M |
| Operating Cash Flow | 289.50M | 319.40M | 337.50M | 313.30M | 349.20M |
| Investing Cash Flow | -109.80M | -139.10M | -409.80M | 418.10M | -218.40M |
| Financing Cash Flow | -152.60M | -182.60M | -52.40M | -550.90M | -111.90M |
Croda International Technical Analysis
Positive
87.00
Price Trends
87.00
Positive
86.67
Positive
85.35
Positive
Market Momentum
<0.01
Positive
99.50
Negative
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:49GP, the sentiment is Positive. The current price of 87 is below the 20-day moving average (MA) of 87.00, above the 50-day MA of 87.00, and above the 200-day MA of 85.35, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 99.50 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:49GP.
Croda International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £535.51M | 22.53 | 6.40% | 9.48% | 0.58% | 61.58% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | £4.19B | 60.70 | 2.82% | 7.59% | ― | ― | |
60 Neutral | £3.36B | -46.91 | -5.87% | 3.54% | -4.60% | -126.46% | |
60 Neutral | £122.20M | 32.05 | 3.64% | 4.08% | 1.12% | -0.70% | |
58 Neutral | £895.75M | -28.06 | -6.85% | 1.34% | -11.78% | -92.61% | |
51 Neutral | £71.64M | -1.25 | -8.05% | ― | -4.41% | 2.29% |
* Basic Materials Sector Average
GB:49GP
Croda International
87.00
6.96
8.70%
GB:ELM
Elementis
157.60
38.51
32.34%
GB:JMAT
Johnson Matthey
2,002.00
867.50
76.47%
GB:SYNT
Synthomer
43.80
-44.20
-50.23%
GB:TET
Treatt plc
207.00
-0.14
-0.07%
GB:VCT
Victrex
615.00
-99.79
-13.96%
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.