Croda International PLC (GB:50GP)
LSE:50GP
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Croda International
(LSE:50GP)
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Rating:63Neutral
Price Target:
88.00 p
▲(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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Croda International (50GP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.06B
Dividend Yield7.11%
Average Volume (3M)0.00
Price to Earnings (P/E)60.7
Beta (1Y)0.02
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 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 multiple sectors. The company operates through several key business divisions, including Personal Care, Crop Care, and Life Sciences, ea...
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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
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 | 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
Negative
78.00
Price Trends
80.66
Negative
79.04
Negative
77.04
Positive
Market Momentum
-0.73
Positive
16.51
Positive
20.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:50GP, the sentiment is Negative. The current price of 78 is below the 20-day moving average (MA) of 81.40, below the 50-day MA of 80.66, and above the 200-day MA of 77.04, indicating a neutral trend. The MACD of -0.73 indicates Positive momentum. The RSI at 16.51 is Positive, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £532.90M | 22.53 | 6.40% | 9.48% | 0.58% | 61.58% | |
63 Neutral | £4.06B | 60.70 | 2.82% | 7.11% | ― | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £3.38B | -46.91 | -5.87% | 3.54% | -4.60% | -126.46% | |
60 Neutral | £123.97M | 32.05 | 3.64% | 4.08% | 1.12% | -0.70% | |
58 Neutral | £899.16M | -28.06 | -6.85% | 1.34% | -11.78% | -92.61% | |
51 Neutral | £79.33M | -1.25 | -8.05% | ― | -4.41% | 2.29% |
* Basic Materials Sector Average
GB:50GP
Croda International
79.00
1.00
1.28%
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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.