Croda International (CRDA) AI Stock Analysis

• Market Cap: £4.17B
• Dividend Yield: 3.45%
• Average Volume (3M): 650.08K
• Price to Earnings (P/E): 69.7
• Beta (1Y): 1.26
• Revenue Growth: 2.36%
• EPS Growth: -13.99%
• Country: UK
• Employees: 6,027
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.74
• Shares Outstanding: 139,635,440
• 10 Day Avg. Volume: 610,745
• 30 Day Avg. Volume: 650,080
• PEG Ratio: -0.99
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 2.21
• P/FCF Ratio: 21.91
• 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: £3,278.00
• Price Target Upside: 9.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.56
• Revenue Forecast (FY): £1.74B

• Rating: 66 Neutral
• Price Target: 3,469.00p ▲(16.21% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 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

Patented ingredients & customer loyalty

Growth in patented ingredients and an 11-point NPS increase point to differentiated products and stronger customer relationships. That combination supports premium pricing, formulation stickiness and repeat B2B demand, producing durable revenue and margin advantages versus commodity peers.

Portfolio shift to higher‑growth end markets

A structural move to consumer, pharma and agriculture (89% of sales) and greater international exposure reduces cyclicality and opens faster-growing end markets. This repositioning supports steadier organic growth and long-term upside from geographic diversification and niche end‑market tailwinds.

Solid cash generation and stronger balance sheet

Consistent operating cash flow and a step-up in free cash flow in 2025, alongside lower net debt and ~1.3x leverage, provide financing flexibility. This underpins capex discipline, funds transformation spend, and supports dividends or debt reduction without stressing the balance sheet long term.

Negative Factors

Large exceptional impairments

Material one‑off impairments highlight prior capacity/capex misalignment and reduce the asset base and reported profitability. Further write‑downs remain possible as footprint optimisation continues, creating persistent earnings volatility and uncertainty around future ROIC.

Segment volatility in Pharma & Industrial

Underperformance in Pharma Solutions and sharp weakness in Industrial Specialties show concentration and end‑market sensitivity. Reliance on a few large customers and policy‑driven demand swings can produce recurring volume and margin volatility that undermines steady long‑term earnings improvement.

Significant remaining transformation cost and execution risk

Substantial remaining transformation spend (~£80m) and material future savings depend on execution across sites and working‑capital initiatives. Implementation risk, cash outflows and likely additional restructuring/impairments may delay margin and ROIC recovery, pressuring multi‑year targets if execution slips.

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 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 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

Financials are stable but not accelerating: earnings and revenue normalized materially after 2022, weighing on near-term profitability momentum. Offsetting this, leverage is more conservative (debt-to-equity ~0.30 in 2023–2024), equity remains sizable, and operating cash flow/free cash flow stayed consistently positive with a notable FCF improvement in 2025.

Income Statement

Revenue has been volatile: strong expansion in 2021–2022, followed by contraction in 2023–2024, and a modest rebound in 2025 (annual revenue growth ~+1.9%). Profitability has also normalized materially from the exceptionally strong 2022 level (net income fell sharply in 2024–2025), which weighs on overall earnings quality. Positively, gross profit dollars remained solid and 2024 margins were still healthy for a specialty chemicals profile, but the post-2022 step-down in earnings is the key weakness.

Balance Sheet

Leverage appears manageable with debt-to-equity around ~0.30 in 2023–2024 (improved materially versus ~0.53–0.57 in 2020–2021), indicating a more conservative capital structure. Equity remains sizable (over £2.1bn in 2025), supporting balance-sheet resilience. The main watch-out is declining profitability returns versus prior years (return on equity down to mid-single digits in 2023–2024), which can limit balance-sheet compounding even if leverage is controlled.

Cash Flow

Cash generation is solid: operating cash flow has been consistently strong (~£290–£350m annually), and free cash flow remained positive each year. 2025 shows a notable jump in free cash flow (strong growth off a weaker 2024 base), supporting financial flexibility. Offsetting this, cash conversion has not been consistently robust versus accounting earnings (in 2024 operating cash flow was slightly below net income), and free cash flow has been somewhat choppy over 2022–2024.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 2985.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 2985 is below the 20-day moving average (MA) of 3014.65, above the 50-day MA of 2851.46, and above the 200-day MA of 2787.43, indicating a neutral trend. The MACD of 68.19 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 38.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:CRDA.

Croda International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRDA	66 Neutral	£4.17B	69.68	6.17%	3.45%	2.36%	-13.99%
ELM	64 Neutral	£937.77M	-16.67	3.37%	1.34%	-11.78%	-92.61%
ESNT	63 Neutral	£293.34M	32.78	3.48%	2.44%	-4.71%	86.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JMAT	60 Neutral	£3.39B	-26.25	-5.62%	3.54%	-4.60%	-126.46%
TET	60 Neutral	£123.75M	25.18	8.02%	4.08%	1.12%	-0.70%
SYNT	51 Neutral	£30.98M	-0.37	-7.26%	―	-4.41%	2.29%

Croda International Corporate Events

Croda lifts earnings and margins, sets ambitious 2028 financial targets

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 currency to £295.3m, though statutory profit was hit by over £100m of impairment and restructuring charges tied to optimising lipids capacity, as the group sharpened its portfolio.

The company said its transformation programme is ahead of plan, realising £28m of gross benefits in 2025 and launching a working capital initiative, while leverage fell and the dividend was nudged higher. Management set a new 2026–28 financial framework targeting 3–6% organic sales CAGR, an operating margin above 20%, stronger cash generation and higher returns on capital, signalling confidence that efficiency gains, focused innovation and better customer experience will underpin improved performance despite uncertain markets.

The most recent analyst rating on (GB:CRDA) stock is a Buy with a £31.50 price target. To see the full list of analyst forecasts on Croda International stock, see the GB:CRDA Stock Forecast page.

Croda executives receive matching shares under incentive plan

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 plan trustee on behalf of participants, with partnership shares bought and an equivalent number of matching shares awarded.

The transactions, all executed on 10 February 2026 at an effective aggregated price of 1550p per share for each individual, cover six persons discharging managerial responsibilities, including an executive director and members of the executive and finance committees. The activity underscores ongoing alignment between Croda’s leadership and shareholders through equity-based remuneration, but does not signal any change in strategic direction or capital structure.

The most recent analyst rating on (GB:CRDA) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Croda International stock, see the GB:CRDA Stock Forecast page.

Croda Executives Acquire Shares Under Company Incentive Plan

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. On 12 January 2026, the plan trustee purchased partnership shares and awarded matching shares on behalf of six senior managers at a price of 2,714p per share, with the aggregated cost per share reported as 1,357p, signalling ongoing executive participation in the company’s equity-based remuneration scheme and reinforcing alignment between management and shareholder interests.

The most recent analyst rating on (GB:CRDA) stock is a Hold with a £2914.00 price target. To see the full list of analyst forecasts on Croda International stock, see the GB:CRDA Stock Forecast page.

Croda Strengthens Board with Appointment of Healthcare Veteran Jill Anderson

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 experience in the healthcare industry, including her recent role as Chief Financial Officer of GSK’s R&D division and her current position as a Non-Executive Director and Audit Committee Chair at Spire Healthcare, strengthening Croda’s board with deep financial and sector expertise that is expected to support the company’s strategic ambitions in innovation-led, health-focused markets.

The most recent analyst rating on (GB:CRDA) stock is a Hold with a £2914.00 price target. To see the full list of analyst forecasts on Croda International stock, see the GB:CRDA Stock Forecast page.

Croda International Announces Share Incentive Plan Transaction

Croda International Plc announced the purchase of shares under the Company’s Share Incentive Plan by Equiniti Share Plan Trustees Limited, involving key managerial personnel. This transaction reflects the company’s commitment to aligning the interests of its executives with those of its shareholders, potentially enhancing stakeholder confidence and supporting its strategic objectives.

The most recent analyst rating on (GB:CRDA) stock is a Hold with a £2914.00 price target. To see the full list of analyst forecasts on Croda International stock, see the GB:CRDA Stock Forecast page.