Croda International (CRDA) AI Stock Analysis

• Market Cap: £3.91B
• Dividend Yield: 3.5%
• Average Volume (3M): 650.08K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.40
• Revenue Growth: 2.36%
• EPS Growth: -13.99%
• Country: UK
• Employees: 6,027
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.72
• Shares Outstanding: 139,635,440
• 10 Day Avg. Volume: 610,745
• 30 Day Avg. Volume: 650,080
• PEG Ratio: -4.55
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 2.90
• P/FCF Ratio: 34.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,137.78
• Price Target Upside: 15.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: 2,914.00p ▲(7.49% Upside)

Croda International's overall stock score reflects a mix of solid financial health and strategic initiatives, tempered by valuation concerns and technical weaknesses. The company's strong earnings call and positive corporate events provide a supportive backdrop, but investors should be cautious of the high P/E ratio and bearish technical indicators.

Positive Factors

Strong Sales Growth

Consistent sales growth across all segments indicates robust demand and effective market penetration, supporting long-term revenue expansion.

Cost Savings Initiative

Significant cost-saving initiatives enhance margin sustainability and operational efficiency, contributing to long-term profitability.

Stable Cash Generation

Stable cash generation capability ensures financial resilience and supports strategic investments, crucial for sustaining growth.

Negative Factors

Declining Revenue Growth

A declining revenue trend could indicate challenges in maintaining market share and competitive positioning, impacting future growth.

Higher Inventory Levels

Elevated inventory levels can lead to increased holding costs and potential write-downs, affecting profitability and cash flow.

Decline in Profit Margins

Decreasing profit margins suggest challenges in cost control and pricing power, which may hinder long-term financial performance.

Croda International Business Overview & Revenue Model

Company Description

Croda International Plc is a global specialty chemicals company headquartered in the UK, focused on delivering innovative and sustainable solutions across various sectors including personal care, health care, crop care, and industrial markets. The company develops and manufactures a wide range of high-performance ingredients and technologies, such as surfactants, emulsifiers, and polymers, which are used in products ranging from cosmetics to pharmaceuticals and agricultural applications.

How the Company Makes Money

Croda International generates revenue primarily through the sale of its specialty chemicals and formulations to diverse industries. The company's revenue model is based on a combination of direct sales and long-term contracts with clients, which provides a steady stream of income. Key revenue streams include products for personal care, which cater to the growing demand for natural and sustainable ingredients, healthcare products that support pharmaceutical and biotechnology applications, and crop care solutions aimed at improving agricultural productivity. Additionally, Croda has established significant partnerships with leading brands in various sectors, enhancing its market presence and driving sales growth. The company's commitment to sustainability and innovation also attracts premium pricing for its differentiated products, contributing further to its earnings.

Croda International Financial Statement Overview

Summary

Croda International shows solid financial health with a strong equity base and effective cost management. However, declining revenue and profitability margins present challenges. Stable cash flow generation suggests resilience, albeit with potential pressures on growth and profit margins.

Income Statement

Croda International's income statement shows a contraction in total revenue from 2022 to 2024, with a negative trend in revenue growth rate. The gross profit margin remains strong at approximately 45%, indicating efficient cost management. However, the net profit margin has decreased, reflecting declining profitability. The EBIT and EBITDA margins are also decreasing, signaling weakening operating performance.

Balance Sheet

The balance sheet is relatively stable with a moderate debt-to-equity ratio. The company's equity ratio is robust, indicating a solid equity base. Despite a slight increase in debt over the years, there’s a consistent stockholders' equity, suggesting financial stability. However, the return on equity has been declining, which may affect investor confidence.

Cash Flow

The cash flow statements indicate stable operating cash flow, though free cash flow has shown minor fluctuations. The free cash flow to net income ratio is healthy, suggesting efficient cash conversion. Despite a decrease in free cash flow in the latest year, the operating cash flow to net income ratio remains strong, highlighting stable cash generation capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.63B	1.69B	2.09B	1.89B	1.39B
Gross Profit	614.80M	733.90M	730.00M	864.90M	825.60M	550.30M
EBITDA	355.50M	374.50M	388.50M	924.80M	549.40M	369.60M
Net Income	139.90M	158.50M	171.00M	649.30M	320.80M	201.60M
Balance Sheet
Total Assets	3.46B	3.51B	3.58B	3.61B	3.29B	3.03B
Cash, Cash Equivalents and Short-Term Investments	157.80M	166.80M	172.50M	320.60M	112.80M	106.50M
Total Debt	737.90M	699.10M	710.10M	615.80M	936.00M	907.00M
Total Liabilities	1.23B	1.21B	1.21B	1.18B	1.53B	1.43B
Stockholders Equity	2.22B	2.28B	2.35B	2.42B	1.75B	1.59B
Cash Flow
Free Cash Flow	79.80M	137.60M	156.80M	160.90M	190.50M	166.30M
Operating Cash Flow	226.60M	319.40M	337.50M	313.30M	349.20M	287.50M
Investing Cash Flow	-135.80M	-139.10M	-409.80M	418.10M	-218.40M	-992.40M
Financing Cash Flow	-128.20M	-182.60M	-52.40M	-550.90M	-111.90M	722.40M

Croda International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2711.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRDA, the sentiment is Negative. The current price of 2711 is below the 20-day moving average (MA) of 2742.30, below the 50-day MA of 2796.30, and below the 200-day MA of 2806.60, indicating a bearish trend. The MACD of -28.43 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 23.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRDA.

Croda International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCT	69 Neutral	£555.78M	18.71	6.22%	9.22%	0.58%	61.53%
TET	67 Neutral	£140.31M	12.90	8.02%	3.95%	1.12%	-0.70%
CRDA	65 Neutral	£3.91B	27.92	6.17%	3.50%	2.36%	-13.99%
ELM	64 Neutral	£918.66M	-16.22	3.37%	1.34%	-11.78%	-92.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JMAT	60 Neutral	£3.37B	-26.09	-5.62%	3.85%	-4.60%	-126.46%
SYNT	51 Neutral	£97.15M	-1.16	-7.26%	―	-4.41%	2.29%

Croda International Corporate Events

Croda International Enhances Stakeholder Engagement with Share Transactions

Croda International Plc has announced a series of share transactions involving its key managerial personnel under the company’s Share Incentive Plan. The transactions, conducted on November 10, 2025, involved the purchase of partnership shares and the awarding of matching shares to executives and committee members, reflecting the company’s commitment to aligning management interests with shareholder value. This move is likely to strengthen the company’s internal stakeholder engagement and enhance its market positioning by incentivizing its leadership team.

Croda International Achieves 6.5% Sales Growth in Q3 2025 Amid Challenging Market

Croda International reported a 6.5% increase in third-quarter sales for 2025, reaching £425 million, driven by growth in Beauty Actives, Fragrances and Flavours, and Crop Protection. Despite a challenging market environment, the company is on track with its transformation plan, aiming for £25 million in cost savings this year and £100 million by 2027, which supports its unchanged full-year outlook.

Croda International Announces Managerial Share Transactions

Croda International Plc announced a notification regarding transactions by individuals in managerial roles, involving the purchase of shares under the company’s Share Incentive Plan. This move reflects an internal alignment of interests between the company’s management and its shareholders, potentially strengthening stakeholder confidence and reinforcing the company’s market position.

Croda International Executives Reinforce Stakeholder Alignment with Share Purchases

Croda International Plc has announced a notification regarding transactions by persons discharging managerial responsibilities (PDMRs) and their closely associated persons. The transactions involved the purchase of ordinary shares under the company’s Share Incentive Plan through dividend reinvestment. This move reflects the ongoing commitment of the company’s executives and key personnel to align their interests with those of shareholders, potentially strengthening stakeholder confidence in Croda’s strategic direction.

Croda International Announces CFO Share Award Vesting

Croda International Plc has announced the vesting of a Buy-Out Award for its Chief Financial Officer, Stephen Richard Oxley, involving 2,051 ordinary shares. This transaction, conducted on September 30, 2025, underlines the company’s ongoing commitment to rewarding its key personnel through share-based incentives, potentially impacting stakeholder confidence and the company’s market positioning.

Croda International Announces Sharesave Scheme Options for Key Executives

Croda International Plc has announced the grant of options under its Sharesave Scheme for 2023, involving several key executives and committee members. This move is part of the company’s ongoing efforts to incentivize its leadership and align their interests with shareholders, potentially impacting the company’s operational focus and stakeholder engagement positively.

Croda International Aligns Management Interests with Shareholders Through Share Incentive Plan

Croda International Plc announced the purchase of shares under its Share Incentive Plan by Equiniti Share Plan Trustees Limited on behalf of persons discharging managerial responsibilities (PDMRs). This transaction, involving ordinary shares, is part of the company’s efforts to align the interests of its management with those of its shareholders, potentially impacting the company’s governance and stakeholder relations positively.