Croda International PLC (GB:CRDA)
LSE:CRDA
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Croda International
(LSE:CRDA)
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Rating:66Neutral
Price Target:
2,962.00 p
â–²(4.70% Upside)
Action:ReiteratedDate:02/25/26
The score reflects solid financial stability (manageable leverage and positive cash generation) and supportive technical momentum, balanced against a demanding valuation (high P/E) and execution risk highlighted on the earnings call (exceptional charges and segment volatility despite improving guidance and transformation progress).
Positive Factors
Cash generation
Consistent operating cash flow and a marked FCF improvement in 2025 provide durable internal funding for transformation, capex and dividends. Strong cash generation supports deleveraging, funds targeted savings and gives flexibility to absorb cyclical downturns without undermining core operations.
Negative Factors
Large impairment and exceptional charges
Material one-off impairments and exceptional charges signal prior overcapacity or misallocated investments and reduce reported equity and earnings quality. They can presage further write‑downs and increase near-term headline volatility, complicating investor assessment of core operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow and a marked FCF improvement in 2025 provide durable internal funding for transformation, capex and dividends. Strong cash generation supports deleveraging, funds targeted savings and gives flexibility to absorb cyclical downturns without undermining core operations.
Read all positive factors
Croda International (CRDA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.95B
Dividend Yield3.45%
Average Volume (3M)650.08K
Price to Earnings (P/E)60.7
Beta (1Y)1.26
Revenue Growth2.36%
EPS Growth-13.99%
CountryUK
Employees6,027
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.74
Shares Outstanding139,635,440
10 Day Avg. Volume610,745
30 Day Avg. Volume650,080
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 Target
£3,348.33Price Target Upside18.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.57
Revenue Forecast (FY)£1.76B
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 makes money primarily by selling specialty chemical ingredients and formulation components to manufacturers and formulators that incorporate these inputs into finished products. Revenue is generated through (1) Consumer Care ingredient sales...
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 presented a constructive picture: solid organic growth, stronger adjusted profitability, improving free cash flow and early, measurable progress from a comprehensive transformation program with clear 2028 financial targets. These positives are tempered by sizeable one-off exceptional charges (largely non-cash impairments), near-term volatility in Pharma Solutions and Industrial Specialties, FX and inflationary pressures, and the prospect of further restructuring actions. On balance, management has credible plans and early execution momentum, but material one-off charges and some segment volatility keep performance recovery from being yet fully de-risked.Positive Updates
Top-line Growth
Sales grew 7% in constant currency to GBP 1.7bn for FY2025; Q4 sales up 5% CC. Growth was broad-based with Consumer Care +8% (Q4 +9%) and Life Sciences +8% (Q4 +8%).
Negative Updates
Significant Exceptional and Impairment Charges
Reported profit before tax reduced to GBP 91m from adjusted GBP 276m due to exceptional charges of GBP 150m. Notable impairments include a GBP 45m full impairment of the Lamar lipid site and GBP 29m write-off of assets under construction; further impairments are likely as footprint optimization continues.
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line Growth
Sales grew 7% in constant currency to GBP 1.7bn for FY2025; Q4 sales up 5% CC. Growth was broad-based with Consumer Care +8% (Q4 +9%) and Life Sciences +8% (Q4 +8%).
Read all positive updates
Company Guidance
Management guided FY26 adjusted operating profit to be in line with market expectations with organic sales growth of 3–6% and a further margin increase; Q1 is expected to be broadly flat versus the strong Q1 2025 (c.9% growth) and FY26 sales are expected to split ~50:50 H1/H2. Looking to 2028 the financial framework targets group organic growth of 3–6% (Consumer Care 3–6%, Life Sciences 4–7%, Industrial Specialties broadly flat), adjusted operating margin >20% (from 17.4% in 2025) implying an EBITDA margin >25%, free cash flow conversion >12% of sales, annualized transformation savings of £100m (c.£75m still to come) and a working capital reduction of £50m; CapEx is expected to stay around £108m (~6% of sales), net debt will be managed at 1–2x EBITDA, ordinary dividend policy is 40–50% of adjusted earnings (current payout ~76%) and near-term headwinds include c.£12m salary inflation (2025) and a ~£10m depreciation step-up in 2026.Croda International Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
72
Positive
Cash Flow
70
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
2829.00
Price Trends
2846.58
Negative
2794.47
Positive
2761.43
Positive
Market Momentum
-46.10
Negative
52.93
Neutral
85.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRDA, the sentiment is Positive. The current price of 2829 is above the 20-day moving average (MA) of 2758.60, below the 50-day MA of 2846.58, and above the 200-day MA of 2761.43, indicating a neutral trend. The MACD of -46.10 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CRDA.
Croda International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | £3.95B | 60.70 | 6.17% | 3.45% | 2.36% | -13.99% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | £3.18B | -46.91 | -5.87% | 3.54% | -4.60% | -126.46% | |
60 Neutral | £117.48M | 32.05 | 3.64% | 4.08% | 1.12% | -0.70% | |
58 Neutral | £844.56M | -28.06 | -6.85% | 1.34% | -11.78% | -92.61% | |
51 Neutral | £48.82M | -1.25 | -7.26% | ― | -4.41% | 2.29% | |
46 Neutral | £259.05M | 131.42 | 0.79% | 2.44% | -4.71% | 86.21% |
* Basic Materials Sector Average
GB:CRDA
Croda International
2,829.00
-5.79
-0.20%
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Croda International Corporate Events
Business Operations and StrategyExecutive/Board Changes
Croda Grants New Share-Based Awards to Senior Management
Positive
Mar 20, 2026
Croda International has granted conditional awards of ordinary shares under its Performance Share Plan 2014 and Deferred Bonus Share Plan to a group of senior executives and committee members, including executive directors and members of the execu...
Other
Croda CEO Exercises Share Awards and Sells Shares to Cover Tax
Neutral
Mar 18, 2026
Croda International chief executive Stephen Foots has exercised conditional share awards granted in March 2023 under the company’s Performance Share Plan and Deferred Bonus Share Plan. The awards covered 1,500 and 6,178 ordinary shares respe...
Regulatory Filings and Compliance
Croda Discloses Executive Share Award Exercise and Related Share Sales
Neutral
Mar 18, 2026
Croda International has disclosed a share transaction involving company secretary Thomas Michael Brophy, a person discharging managerial responsibilities. Brophy exercised conditional awards under the company’s Performance Share Plan and Def...
Executive/Board ChangesRegulatory Filings and Compliance
Croda Executive Exercises Share Awards and Sells Stock to Cover Tax
Neutral
Mar 18, 2026
Croda International disclosed that Executive Committee member Sandra Elaine Breene exercised conditional share awards under the company’s Performance Share Plan 2014 and Deferred Bonus Share Plan, both originally granted in March 2023. Follo...
Regulatory Filings and Compliance
Croda Discloses Performance Share Plan Exercise by Finance Committee Member
Neutral
Mar 18, 2026
Croda International has disclosed a transaction by Ritesh Tanna, a member of its Finance Committee and a person discharging managerial responsibilities, involving ordinary shares in the company. Tanna exercised a conditional award of 99 ordinary s...
Executive/Board ChangesRegulatory Filings and Compliance
Croda discloses nil-cost share award exercise by executive committee member
Neutral
Mar 18, 2026
Croda International has disclosed a routine share-based transaction involving Executive Committee member Thiruselvan Jayalakshmi Maruthapillai, in line with regulatory requirements for persons discharging managerial responsibilities. The executive...
Regulatory Filings and Compliance
Croda Executive Committee Member Exercises Share Awards and Sells Shares for Tax
Neutral
Mar 18, 2026
Croda International has disclosed a management share transaction involving Executive Committee member Anthony Damien Fitzpatrick, in line with regulatory requirements for persons discharging managerial responsibilities. Fitzpatrick exercised condi...
Regulatory Filings and Compliance
Croda Executive Exercises Share Award and Sells Portion to Cover Tax
Neutral
Mar 18, 2026
Croda International has disclosed a share transaction involving Executive Committee member Michelle Angela Lydon, in line with regulatory requirements on dealings by senior managers. Lydon exercised a conditional award of 365 ordinary shares under...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Croda Publishes 2025 Annual Report and Sets Date for April AGM
Neutral
Mar 16, 2026
Croda International has published its 2025 Annual Report and Accounts and the formal Notice of its upcoming Annual General Meeting, making these documents available both online and via mail to shareholders. The move provides investors with the det...
Regulatory Filings and Compliance
Croda Executives Acquire Shares Under Routine Incentive Plan
Neutral
Mar 11, 2026
Croda International disclosed routine share transactions by several persons discharging managerial responsibilities, including an executive director, executive committee members and the company secretary, under its Share Incentive Plan. The trades...
Regulatory Filings and Compliance
Croda Director Danuta Gray Buys Shares in Regulatory Disclosure
Neutral
Mar 6, 2026
Croda International has disclosed a share transaction involving non-executive director Danuta Gray, in line with regulatory requirements for reporting dealings by persons discharging managerial responsibilities. The notification confirms Gray̵...
Business Operations and StrategyDividendsFinancial Disclosures
Croda lifts earnings and margins, sets ambitious 2028 financial targets
Positive
Feb 24, 2026
Croda reported 2025 sales of £1.7bn, up 6.6% at constant currency, with Consumer Care and Life Sciences both delivering higher sales, margins and profits, while Industrial Specialties declined. Adjusted operating profit rose 7.9% at constant ...
Executive/Board ChangesRegulatory Filings and Compliance
Croda executives receive matching shares under incentive plan
Neutral
Feb 11, 2026
Croda International has disclosed routine share transactions by several senior executives and committee members under the company’s Share Incentive Plan. The plan involved the purchase of ordinary shares on the London Stock Exchange by the p...
Executive/Board Changes
Croda Executives Acquire Shares Under Company Incentive Plan
Positive
Jan 13, 2026
Croda International has disclosed that several persons discharging managerial responsibilities, including Executive Director Stephen Foots and other senior executives, have acquired ordinary shares in the company through its Share Incentive Plan. ...
Executive/Board Changes
Croda Strengthens Board with Appointment of Healthcare Veteran Jill Anderson
Positive
Jan 9, 2026
Croda International has appointed Jill Anderson as a Non-Executive Director, effective 12 January 2026, and she will also serve on the Audit, Nomination and Remuneration Committees. Anderson brings over three decades of international leadership ex...
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.