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Croda International
(LSE:49GP)
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Rating:64Neutral
Price Target:
93.00 p
▲(6.90% Upside)
Action:Reiterated
Date:07/28/26
The score is primarily driven by mixed financial performance (flat revenue and a sharp 2025 net income decline, partially offset by steady EBIT, manageable leverage, and resilient cash flow) and a constructive earnings update with reaffirmed guidance and improving margins. Technicals are mildly supportive based on moving averages, while valuation is a headwind due to the high P/E despite a strong dividend yield.
Positive Factors
Organic growth and margin expansion
Sales growth exceeded volume growth through favorable price and mix, while operating profit grew faster than revenue. Sustained margin expansion, supported by pricing and transformation savings, can improve earnings resilience if execution continues.
Negative Factors
Flat revenue and weaker net income
Muted revenue growth limits operating leverage, while the sharp decline in bottom-line earnings indicates substantial profitability or below-the-line pressure. Even with resilient EBIT, persistent earnings volatility could constrain investment capacity and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic growth and margin expansion
Sales growth exceeded volume growth through favorable price and mix, while operating profit grew faster than revenue. Sustained margin expansion, supported by pricing and transformation savings, can improve earnings resilience if execution continues.
Read all positive factors
Croda International (49GP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.79B
Dividend Yield7.59%
Average Volume (3M)173.00
Price to Earnings (P/E)60.7
Beta (1Y)0.03
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees5,954
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.57
Shares Outstanding499,000
10 Day Avg. Volume516
30 Day Avg. Volume173
Financial Highlights & Ratios
PEG Ratio-1.00
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, founded in 1925 and based in Goole, UK, is a global enterprise dedicated to the innovation, production, and distribution of specialty chemicals. Its extensive reach covers Europe, the Middle East, Africa, North America, As...
How the Company Makes Money
Croda makes money by selling specialty chemical ingredients and ingredient systems to business customers (B2B), generating revenue largely from product sales supported by technical service and long-term customer relationships. Its key revenue stre...
Croda International Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call conveyed a positive operational and financial momentum: sales and profits grew, margins expanded, transformation savings are materializing and innovation-led segments (notably Beauty Actives) delivered strong growth. There are clear executional achievements (new plants, digitalisation, NPP growth) and management reiterated unchanged full-year guidance. Notable challenges include phasing-related weakness in Pharma Solutions, disruptions in Fragrances & Flavours from Middle East conflict, crop end-market softness and elevated working capital/inventory. However, management signaled these are largely within control (pricing actions, order-book visibility, transformation roadmap) and expects H2 improvement.Positive Updates
Revenue Growth in H1
Group sales increased 5% in constant currency to GBP 881 million, driven by volume (+1%) and price/mix (+4%). Organic guidance for the full year remains 3%–6%.
Negative Updates
Pharma Solutions Underperformance and Project Phasing
Pharma Solutions sales were below expectations in H1 due to project phasing; management described the business as lumpy/project-driven and expects order-book-led improvement in H2 but H1 weakness weighed on Life Sciences performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth in H1
Group sales increased 5% in constant currency to GBP 881 million, driven by volume (+1%) and price/mix (+4%). Organic guidance for the full year remains 3%–6%.
Read all positive updates
Company Guidance
Management reiterated unchanged 2026 guidance — organic sales growth of 3–6% and a further increase in adjusted operating margin, with adjusted operating profit expectations unchanged — saying the H1 exit rate and momentum give confidence to deliver full‑year margin expansion and to remain on track for the 3‑year / 2028 financial framework; H1 actuals supporting that view included group sales +5% to £881m, new & protected products +7%, volumes +1% and price/mix +4%, adjusted operating profit +7% to £156m and adjusted operating margin up to 17.7% (+50bp), EPS +9% to 78p, free cash flow £38m (from £28m), net debt £578m and leverage 1.4x EBITDA; transformation delivered £18m of savings in H1 (cumulative £46m toward a £100m target), CapEx was £43m, and working‑capital actions target ~£50m structural savings by 2028 to offset typical annual WC funding of £20–30m — with segment/region momentum (Consumer Care +8%, Pharma Ingredients +7%, Beauty Actives Q2 +27%, Asia +10%, Latin America +11%, North America -1%).Croda International Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
72
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.72B | 1.70B | 1.63B | 1.69B | 2.09B | 1.89B |
| Gross Profit | 615.90M | 608.70M | 733.90M | 730.00M | 864.90M | 825.60M |
| EBITDA | 390.10M | 380.70M | 374.50M | 388.50M | 924.80M | 549.40M |
| Net Income | 79.50M | 62.00M | 158.50M | 171.00M | 649.30M | 320.80M |
Balance Sheet | ||||||
| Total Assets | 3.53B | 3.41B | 3.51B | 3.58B | 3.61B | 3.29B |
| Cash, Cash Equivalents and Short-Term Investments | 205.30M | 172.80M | 166.80M | 172.50M | 320.60M | 112.80M |
| Total Debt | 783.20M | 696.60M | 699.10M | 710.10M | 615.80M | 936.00M |
| Total Liabilities | 1.34B | 1.21B | 1.21B | 1.21B | 1.18B | 1.53B |
| Stockholders Equity | 2.17B | 2.19B | 2.28B | 2.35B | 2.42B | 1.75B |
Cash Flow | ||||||
| Free Cash Flow | 187.80M | 171.80M | 137.60M | 156.80M | 160.90M | 190.50M |
| Operating Cash Flow | 283.40M | 289.50M | 319.40M | 337.50M | 313.30M | 349.20M |
| Investing Cash Flow | -93.00M | -109.80M | -139.10M | -409.80M | 418.10M | -218.40M |
| Financing Cash Flow | -175.90M | -152.60M | -182.60M | -52.40M | -550.90M | -111.90M |
Croda International Technical Analysis
Positive
87.00
Price Trends
87.00
Negative
85.75
Positive
84.48
Positive
Market Momentum
0.03
Positive
100.00
Negative
33.33
Neutral
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 above the 20-day moving average (MA) of 87.00, below the 50-day MA of 87.00, and above the 200-day MA of 84.48, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | £707.94M | -35.35 | -4.95% | 3.59% | -1.24% | -166.15% | |
66 Neutral | £1.02B | 18.88 | 11.29% | 1.89% | -11.73% | ― | |
64 Neutral | £4.79B | 60.70 | 3.65% | 7.59% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | £163.94M | -1.37 | -13.27% | ― | -4.98% | -43.98% | |
51 Neutral | £2.87B | -39.89 | -4.66% | 4.01% | 7.70% | -128.58% |
* Basic Materials Sector Average
GB:49GP
Croda International
87.00
6.01
7.42%
GB:ELM
Elementis
179.20
14.51
8.81%
GB:JMAT
Johnson Matthey
2,274.00
353.79
18.42%
GB:SYNT
Synthomer
100.00
34.60
52.91%
GB:VCT
Victrex
813.00
164.98
25.46%
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.