Education
About Us
Working with TipRanks
Follow Us
Croda International PLC (GB:50GP)
LSE:50GP
Top Page
Croda International
(LSE:50GP)
Select Model
Select Model
Rating:63Neutral
Price Target:
88.00p
▲(12.82% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by a generally stable financial position and improving cash generation, reinforced by constructive earnings-call guidance and a defined margin/FCF improvement plan. These positives are tempered by a weakened net income trajectory since 2022, elevated exceptional charges/impairments and transformation execution risk, and overbought technical readings that increase near-term downside risk; valuation cannot be reliably assessed with the provided P/E and dividend yield data.
Positive Factors
Diversified end markets & category outperformance
Strong, broad-based end-market performance (notably Consumer Care and F&F) signals diversified revenue streams and reduced dependence on any single sector. Durable customer relationships, high retention and regional demand support steady volume and pricing opportunities over the medium term, underpinning revenue resilience through cycles.
Improving cash generation and manageable leverage
Consistent positive operating cash flow and a marked FCF rebound in 2025 improve financial flexibility. Sub- or low‑single digit leverage (~1.3x) and steady capex policy support funding for transformation, dividends and targeted bolt-on M&A without materially stressing the balance sheet over the 2–6 month horizon.
Clear multi-year margin and savings framework
A defined three‑year plan with quantified margin, cost‑saving and working capital targets gives a structural roadmap to improved profitability and cash conversion. If executed, these initiatives materially raise sustainable operating margins and ROIC, improving long-term earnings quality and capital return capacity.
Negative Factors
Large exceptional charges and impairments
Material one‑off charges and multiple site impairments reduce reported earnings and balance‑sheet carrying values, creating uncertainty over asset recoverability. These items compress near‑term reported profitability and could presage further restructuring or capital write‑downs that impair long‑term returns.
Weakened earnings power and choppy revenue
A return to choppy top‑line growth and a sustained decline in net income since 2022 indicate underlying earnings volatility. Persistently weaker bottom‑line performance undermines visibility on dividends, ROIC and the company's ability to consistently fund growth or transformation without relying on structural improvements.
Transformation execution risk and near‑term cash costs
Delivering sizeable savings requires further capex, cash outlays and operational change. Execution risk is significant: failure to realize the planned £100m annualized savings (or timing slippage) would strain margins and cash in the near term and raise the likelihood of further restructuring or lower-than-expected free cash flow.
Croda International (50GP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.01B
Dividend Yield7.11%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)0.03
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees6,027
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)N/A
Shares Outstanding616,000
10 Day Avg. Volume0
30 Day Avg. Volume0
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 DescriptionCroda 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 Industrial Chemicals. The company offers adhesives; crop protection additives and adjuvants, seed enhancement and animal health chemicals, chemical bio-stimulants, and specialty additives for agricultural films; and lubricant additives, coatings and polymers, vehicle cleaning chemicals, and products for automotive textiles and fibers, as well as specialty additives for plastics, and battery and catalyst industries. It also provides specialty ingredients for self-tanning, color cosmetics, bath and shower, deodorants, anti-perspirants, depilatories, men's grooming, and oral hygiene, as well as skin, hair, sun, body, and baby care applications; construction chemicals and bitumen additives; dietary supplements; and materials and polymer additives for electronics and devices. In addition, the company offers chemistries, emulsifiers, fuel and power generation additives, and polymer additives; food additives; specialty polymer additives for furniture and wood applications; household, industrial, and institutional cleaning products; lubricants; oleochemicals; and packaging, print, and paper chemicals. Further, it provides paints and coatings; active pharmaceutical ingredients; thermal management products; plastic and rubber products; skin health products; hygiene and industrial nonwovens, botanical extracts, tissues, and textile auxiliaries; and water treatment chemicals. Additionally, the company offers bio-based phase change materials for buildings and ventilation, clothing and healthcare, electronics and devices, food and refrigeration, energy storage and recovery, temperature controlled packaging, and vehicles and automotive applications. The company was incorporated in 1925 and is headquartered in Goole, the United Kingdom.
How the Company Makes MoneyCroda International generates revenue primarily through the sale of specialty chemicals and ingredients across multiple sectors. The company operates through several key business divisions, including Personal Care, Crop Care, and Life Sciences, each contributing significantly to its overall revenue. Major revenue streams come from the formulation and distribution of high-value products tailored to meet customer specifications, as well as from long-term contracts with key clients in various industries. Additionally, Croda leverages its commitment to sustainability, which attracts environmentally conscious businesses, thereby enhancing its market position. Strategic partnerships with leading companies in the personal care and agricultural sectors further bolster its earnings by enabling co-development of innovative solutions and expanding market reach.
Croda International Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call balanced encouraging operational and financial progress—7% sales growth, improved adjusted profits, stronger free cash flow, margin recovery and clear multi-year targets—against meaningful near-term headwinds including large exceptional impairments (GBP 150m), noncash write-offs, Industrial Specialties weakness, FX and inflation pressures, and transformation costs/risks. Management presented a detailed plan (GBP 100m savings, SKU/customer rationalization, supply‑chain optimization) and conservative guidance that assumes breakout pharma projects are excluded from the near-term targets. Overall the positives around growth, cash generation, portfolio positioning and a defined transformation pipeline outweigh the challenges, while the impairments and execution risk warrant ongoing monitoring.Q4-2025 Updates
Positive Updates
Full-Year Sales Growth
Sales grew 7% in constant currency to GBP 1.7 billion for FY2025, with Q4 sales up 5% cc versus a strong comparator.
Adjusted Profit and EBITDA Expansion
Adjusted operating profit rose 8% to GBP 295 million and adjusted profit before tax increased 8% to GBP 276 million; EBITDA increased 5% to GBP 397 million.
Segment Outperformance – Consumer Care & F&F
Consumer Care grew 8% for the year and 9% in Q4; Fragrances & Flavors (F&F) was a standout, up ~15% for the year with strong regional/local customer demand.
Life Sciences and Crop Momentum
Life Sciences grew 8% for the year with Crop Protection up 14% (full year) and Seed Enhancement up 8%; Pharma delivered its strongest quarter, driven by higher excipient sales.
Innovation and Pipeline Progress
Sales of patented ingredients rose 9%; sales of new ingredients increased 10% in 2025 and average pipeline value per customer co-creation project increased 12%.
Improved Customer Metrics
Net Promoter Score improved by 11 points, with >90% customer retention over 5 years and top-quartile benchmarking for product quality, innovation and trust.
Margin Recovery and Transformation Benefit
Operating margin improved through the year (17.2% → 17.4% full year; second-half margin 17.6%) with a 1.6 percentage point benefit cited from transformation cost savings.
Free Cash Flow and Leverage
Free cash flow strengthened to GBP 162 million in FY2025; net debt reduced slightly to GBP 524 million with leverage improving to 1.3x EBITDA.
CapEx Discipline
CapEx reduced from GBP 138 million to GBP 108 million (below guidance of GBP 135 million), with a planned continuation around ~6% of sales.
Clear 3-Year Financial Framework
Management targets organic sales growth of c.3–6% (Consumer Care) and 4–7% (Life Sciences), adjusted operating margin >20% by 2028, free cash flow conversion >12% and ROIC >10%, plus GBP 100 million annualized transformation savings and GBP 50 million working capital reduction by 2028.
Negative Updates
Large Exceptional Charges Reducing Reported Profit
Reported profit before tax was GBP 91 million versus adjusted PBT GBP 276 million due to exceptional charges of GBP 150 million, materially widening the adjusted/reported gap.
Significant Impairments and Site Decisions
Noncash and cash exceptional items included a GBP 45 million full impairment of the Lamar lipid site plus GBP 16 million onerous standby provision; additional write-offs of GBP 29 million (assets under construction), GBP 22 million (U.K. distribution center) and GBP 11 million (intangible assets) were recorded, and further impairments are flagged as likely.
Industrial Specialties Underperformance
Industrial Specialties declined 19% in Q4 versus a strong prior-year quarter and was down 2% for the full year; Cargill-related sales reductions noted (Cargill now ~20% of IS sales).
Pharma Headwinds and Policy Impact
Pharma sales grew only 4% (below expectations) with U.S. policy impacting vaccine adjuvant volumes; Pharma Solutions remains more volatile and the company is cautious about including potential breakout projects in short-term guidance.
Foreign Exchange and Inflation Pressures
A nearly 1% FX headwind masked margin recovery; principal ongoing headwinds include salary inflation (GBP 12 million in 2025) and an anticipated GBP 10 million step-up in depreciation in 2026.
Transformation Cash Costs and Execution Risk
Transformation is expected to cost GBP 80 million in cash to deliver GBP 100 million annualized savings by 2028 (with GBP 75 million still to be delivered), implying near-term cash outflows and execution risk; working capital improvement target is GBP 50 million by 2028.
Utilization and Working Capital Dynamics
Reported utilization around 93% (full year), below target 100% and variable by site/process; working capital moved to an outflow of GBP 8 million (versus prior-year inflow of GBP 21 million), and typical working capital outflow guidance is GBP 20–30 million to fund growth absent structural changes.
Company Guidance
Management guided adjusted operating profit to be in line with market expectations and reiterated organic sales growth of 3–6% p.a. for Consumer Care (4–7% for Life Sciences), a group average of 3–6% to 2028, with Q1 expected broadly flat versus the strong Q1 2025 and H1/H2 splitting roughly 50/50. They target adjusted operating margin >20% by 2028 (EBITDA margin >25%), free cash flow conversion >12% of sales, GBP100m annualized transformation savings (GBP80m cash cost; ~GBP75m still to come), working capital reduction of GBP50m, CapEx around ~GBP108m (~6% of sales), net debt maintained in the 1–2x EBITDA range (current net debt £524m; leverage 1.3x), a dividend policy of 40–50% of adjusted earnings (current payout ~76% with FY dividend 111p), disciplined M&A (bolt‑ons typically <£10m), and continued focus on price/mix improvement and volume recovery (volumes to moderate from 10% in 2025).Croda International Financial Statement Overview
Summary
Balance sheet and liquidity are generally supportive (manageable leverage historically and consistently positive operating cash flow, with a strong free cash flow rebound in 2025). Offsetting this, earnings power has weakened materially since 2022, with choppy revenue and a clear decline in bottom-line profitability through 2025.Income Statement
Revenue has been choppy, declining in 2023 and 2024 before returning to modest growth in 2025. Profitability has also normalized materially from the unusually strong 2022 level: net income fell sharply from 2022 to 2024 and declined again in 2025, indicating weaker earnings power despite stable operating profit. The positive is that operating profit and EBITDA have been relatively resilient versus revenue, but the trend in bottom-line profit is a clear headwind.58
Neutral
Balance Sheet
Leverage appears manageable with debt-to-equity around ~0.25–0.31 in 2022–2024, supporting balance-sheet stability. However, debt increased in 2025 while equity declined, which modestly weakens the trajectory. Overall asset levels have been broadly steady, and returns on equity in 2023–2024 are moderate, but well below the 2022 peak.74
Positive
Cash Flow
Cash generation is solid: operating cash flow has remained consistently positive across the period and free cash flow improved strongly in 2025 (up sharply versus 2024). That said, cash conversion has not been consistently strong—2024 operating cash flow was slightly below net income—and free cash flow declined in 2022–2024 before the 2025 rebound, suggesting some volatility in underlying cash efficiency.67
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 | 760.30M | 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
78.00
Price Trends
78.90
Positive
78.45
Positive
78.22
Positive
Market Momentum
1.39
Negative
100.00
Negative
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:50GP, the sentiment is Positive. The current price of 78 is below the 20-day moving average (MA) of 80.25, below the 50-day MA of 78.90, and below the 200-day MA of 78.22, indicating a bullish trend. The MACD of 1.39 indicates Negative momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:50GP.
Croda International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £558.83M | 20.09 | 6.22% | 9.48% | 0.58% | 61.58% | |
64 Neutral | £911.63M | -16.23 | 3.37% | 1.34% | -11.78% | -92.61% | |
63 Neutral | £4.01B | ― | ― | 7.11% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £3.28B | -25.44 | -5.62% | 3.54% | -4.60% | -126.46% | |
60 Neutral | £123.75M | 25.18 | 8.02% | 4.08% | 1.12% | -0.70% | |
51 Neutral | £29.11M | -0.35 | -7.26% | ― | -4.41% | 2.29% |
* Basic Materials Sector Average
GB:50GP
Croda International
83.00
0.00
0.00%
GB:ELM
Elementis
160.40
11.25
7.54%
GB:JMAT
Johnson Matthey
1,955.00
549.57
39.10%
GB:SYNT
Synthomer
17.80
-117.20
-86.81%
GB:TET
Treatt plc
211.00
-178.98
-45.89%
GB:VCT
Victrex
642.00
-229.38
-26.32%
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.