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Croda International
(LSE:CRDA)
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Rating:62Neutral
Price Target:
3,101.00 p
â–²(5.76% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by stable underlying financials (strong cash generation and improved leverage) and a constructive earnings update with reiterated guidance and margin expansion. Offsetting these positives are a demanding valuation (high P/E) and only mixed near-term technicals (below short-term moving averages), which temper the overall attractiveness.
Positive Factors
Cash generation
Consistent operating cash flow in the ~£290–£350m range and a 2025 free cash‑flow pickup provide durable financial flexibility. Strong cash generation supports reinvestment in R&D and capacity, funds dividends and transformation, and reduces refinancing risk across a 2–6 month horizon.
Negative Factors
Revenue and earnings volatility
The step‑down from exceptional 2022 profits to weaker 2024–25 earnings highlights demand and margin cyclicality. Persistent volatility undermines predictability of margins and returns, complicating capital allocation and making sustainable EPS improvement less certain over 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating cash flow in the ~£290–£350m range and a 2025 free cash‑flow pickup provide durable financial flexibility. Strong cash generation supports reinvestment in R&D and capacity, funds dividends and transformation, and reduces refinancing risk across a 2–6 month horizon.
Read all positive factors
Croda International (CRDA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.47B
Dividend Yield3.46%
Average Volume (3M)650.08K
Price to Earnings (P/E)56.7
Beta (1Y)1.35
Revenue Growth3.36%
EPS Growth-43.08%
CountryUK
Employees5,954
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.57
Shares Outstanding139,635,440
10 Day Avg. Volume610,745
30 Day Avg. Volume650,080
Financial Highlights & Ratios
PEG Ratio-1.00
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
£3,439.38Price Target Upside17.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.58
Revenue Forecast (FY)£1.77B
Croda International Business Overview & Revenue Model
Company Description
Croda International Plc, established in 1925 and headquartered in Goole, United Kingdom, is a global leader in the development, manufacture, and supply of high-performance specialty chemicals. The company serves a diverse international client base...
How the Company Makes Money
Croda makes money primarily by selling specialty chemical ingredients and ingredient systems to business customers (e.g., consumer product manufacturers, pharmaceutical and health-related companies, and industrial formulators). Revenue is generate...
Croda International Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: organic growth, margin expansion, improved EPS and cash flow, strong outperformance in Consumer Care (notably Beauty Actives) and progress on transformation and AI initiatives. Headwinds remain in certain areas — Pharma Solutions phasing and lumpiness, Crop Protection weakness, regional F&F disruption, working-capital outflow and input-cost volatility — but management reiterated FY guidance and a clear path to their 3-year targets, viewing many challenges as within management control.Positive Updates
Revenue and Sales Growth
Group sales up 5% in constant currency to GBP 881m in H1; volumes +1% and price/mix +4%; organic sales guidance reiterated at 3–6% for FY2026.
Negative Updates
Pharma Solutions Underperformance and Lumpiness
Pharma Solutions (under 30% of pharma sales, c. GBP 60m) was below expectations in H1 due to phasing and lumpy project timing; management expects project revenues to improve in H2 but visibility remains more variable.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Sales Growth
Group sales up 5% in constant currency to GBP 881m in H1; volumes +1% and price/mix +4%; organic sales guidance reiterated at 3–6% for FY2026.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance: organic sales growth of 3–6% and a further increase in adjusted operating margin, with adjusted operating profit expectations unchanged, and said the group remains on track to deliver its 2028 financial framework. In H1 the business delivered sales +5% to £881m (new & protected products +7%), volumes +1%, price/mix +4%; adjusted operating profit +7% to £156m, EBITDA £208m, EPS +9% to 78p, free cash flow £38m (vs £28m), net debt £578m and leverage ~1.4x. Margins expanded 50bps to 17.7% aided by £18m of transformation savings in H1 (cumulative £46m) against a £100m transformation target; management expects operating margins to increase sequentially in H2, Pharma Solutions project revenues to recover in H2, working capital (H1 outflow £68m) to improve as a programme delivers ~£50m structural savings by 2028 (offsetting a £20–30m p.a. growth drag), and H1 capex was £43m.Croda International Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.72B | 1.70B | 1.63B | 1.69B | 2.09B | 1.89B |
| Gross Profit | 615.90M | 608.70M | 733.90M | 730.00M | 864.90M | 825.60M |
| EBITDA | 390.10M | 380.70M | 374.50M | 388.50M | 924.80M | 549.40M |
| Net Income | 79.50M | 62.00M | 158.50M | 171.00M | 649.30M | 320.80M |
Balance Sheet | ||||||
| Total Assets | 3.53B | 3.41B | 3.51B | 3.58B | 3.61B | 3.29B |
| Cash, Cash Equivalents and Short-Term Investments | 205.30M | 172.80M | 166.80M | 172.50M | 320.60M | 112.80M |
| Total Debt | 783.20M | 696.60M | 699.10M | 710.10M | 615.80M | 936.00M |
| Total Liabilities | 1.34B | 1.21B | 1.21B | 1.21B | 1.18B | 1.53B |
| Stockholders Equity | 2.17B | 2.19B | 2.28B | 2.35B | 2.42B | 1.75B |
Cash Flow | ||||||
| Free Cash Flow | 187.80M | 171.80M | 137.60M | 156.80M | 160.90M | 190.50M |
| Operating Cash Flow | 283.40M | 289.50M | 319.40M | 337.50M | 313.30M | 349.20M |
| Investing Cash Flow | -93.00M | -109.80M | -139.10M | -409.80M | 418.10M | -218.40M |
| Financing Cash Flow | -175.90M | -152.60M | -182.60M | -52.40M | -550.90M | -111.90M |
Croda International Technical Analysis
Positive
2932.00
Price Trends
3036.14
Positive
2940.23
Positive
2847.41
Positive
Market Momentum
85.37
Negative
63.52
Neutral
84.96
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 2932 is below the 20-day moving average (MA) of 3066.30, below the 50-day MA of 3036.14, and above the 200-day MA of 2847.41, indicating a bullish trend. The MACD of 85.37 indicates Negative momentum. The RSI at 63.52 is Neutral, neither overbought nor oversold. The STOCH value of 84.96 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 | £1.01B | 18.45 | 11.29% | 1.89% | -11.73% | ― | |
62 Neutral | £4.47B | 56.67 | 3.65% | 3.79% | 3.36% | -43.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | £295.37M | 54.84 | 2.02% | 2.09% | 6.98% | -41.36% | |
53 Neutral | £144.27M | -0.96 | -16.66% | ― | -12.46% | -116.21% | |
52 Neutral | £3.34B | -34.95 | -4.66% | 4.01% | 7.70% | -128.57% |
* Basic Materials Sector Average
GB:CRDA
Croda International
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Croda International Corporate Events
Business Operations and StrategyFinancial Disclosures
Croda lifts profit and margins on innovation-led growth, keeps 2026 outlook
Positive
Jul 28, 2026
Croda International reported a solid first-half performance for 2026, with group sales rising 2.9% to £880.5m and organic growth of 4.6% driven mainly by Consumer Care, where sales increased 8%. Beauty Actives grew 19%, Beauty Care 4%, Home C...
Other
Croda Executives Acquire Shares Under Incentive Plan
Neutral
Jul 13, 2026
Croda International has disclosed routine share purchases by eight senior executives and committee members under its Share Incentive Plan, involving the acquisition of ordinary shares on the London Stock Exchange. The transactions, conducted via t...
Business Operations and StrategyRegulatory Filings and Compliance
Croda Executives Acquire Shares Under Incentive Plan
Neutral
Jun 11, 2026
Croda International has disclosed routine share transactions involving several persons discharging managerial responsibilities under the company’s Share Incentive Plan. Executive directors, executive committee members and a finance committee...
Business Operations and StrategyExecutive/Board Changes
Croda Chair Danuta Gray Joins Lloyds Banking Group Board
Positive
Jun 11, 2026
Croda International has announced that its Chair and Independent Non-Executive Director, Danuta Gray, will take on an additional role as a Non-Executive Director of Lloyds Banking Group from 1 July 2026, joining its Responsible Business Committee....
Regulatory Filings and Compliance
Croda discloses executive share award exercise and partial sale
Neutral
Jun 1, 2026
Croda International has disclosed a share transaction involving Executive Committee member Thomas Hermann Riermeier, in line with regulatory requirements for persons discharging managerial responsibilities. The filing details the exercise of a pre...
Regulatory Filings and Compliance
Croda Executive Committee Member Reports Small Dividend Reinvestment Share Purchase
Neutral
May 29, 2026
Croda International disclosed a small share transaction involving Executive Committee member Sandra Elaine Breene, classified as a person discharging managerial responsibilities under market rules. The transaction involved the reinvestment of a ca...
Regulatory Filings and Compliance
Croda CFO Increases Stake Through Dividend Reinvestment
Neutral
May 29, 2026
Croda International has disclosed a share transaction involving its Chief Finance Officer, Stephen Richard Oxley, under regulatory rules governing dealings by senior managers. The filing records that Oxley acquired 77 ordinary shares in the compan...
DividendsRegulatory Filings and Compliance
Croda Discloses Dividend Reinvestment Share Purchases by Company Secretary
Positive
May 29, 2026
Croda International has disclosed share transactions involving Company Secretary Thomas Michael Brophy and his closely associated person, Sarah Elizabeth Brophy, following dividend reinvestment into ordinary shares. The purchases, executed on the ...
Other
Croda CFO Oxley Adds Shares Through Dividend Reinvestment
Neutral
May 29, 2026
Croda International has disclosed a minor share transaction by Chief Finance Officer Stephen Richard Oxley, who acquired 42 ordinary shares through a dividend reinvestment on 28 May 2026. The purchase, valued at about £1,267, reflects routine...
Regulatory Filings and Compliance
Croda Discloses Executive Dividend Reinvestment Share Deals
Neutral
May 29, 2026
Croda International has disclosed share transactions involving executive committee member Sandra Elaine Breene and her closely associated person, Alan Lamplough. The dealings relate to the reinvestment of dividends into ordinary shares on the Lond...
Regulatory Filings and Compliance
Croda Executive Committee Member Buys Shares in Insider Deal
Positive
May 15, 2026
Croda International has disclosed that Executive Committee member Sandra Elaine Breene purchased 442 ordinary shares in the company on 15 May 2026. The transaction, executed on the London Stock Exchange at a price of 2,753.668p per share for a tot...
Executive/Board ChangesRegulatory Filings and Compliance
Croda Executives Receive Shares Under Company Incentive Plan
Neutral
May 12, 2026
Croda International disclosed that several senior executives, including executive directors and members of its executive and finance committees, participated in the company’s Share Incentive Plan. Ordinary shares were purchased on their beha...
Regulatory Filings and Compliance
Croda CEO discloses share award exercise and small share sale
Neutral
May 6, 2026
Croda International has disclosed a share transaction by chief executive Stephen Edward Foots under regulatory rules covering dealings by senior managers. The move involved the exercise of a conditional performance share award and an immediate sal...
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.