Akzo Nobel NV (AKZA) AI Stock Analysis

• Market Cap: €9.75B
• Dividend Yield: 3.25%
• Average Volume (3M): 374.02K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.81
• Revenue Growth: -1.57%
• EPS Growth: -29.52%
• Country: NL
• Employees: 34,100
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.13
• Shares Outstanding: 171,041,670
• 10 Day Avg. Volume: 283,373
• 30 Day Avg. Volume: 374,021
• PEG Ratio: 0.82
• Price to Book (P/B): 2.16
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 26.96
• 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: €69.88
• Price Target Upside: 14.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 65 Neutral
• Price Target: €63.00 ▲(3.41% Upside)

Akzo Nobel NV's overall stock score reflects strong cash flow and gross profit margins, but is tempered by challenges in revenue growth and high leverage. Technical indicators suggest neutral momentum, while valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Akzo Nobel NV Business Overview & Revenue Model

Company Description

Akzo Nobel N.V. engages in the production and sale of paints and coatings worldwide. It offers decorative paints, including paints, lacquers, and varnishes; and a range of mixing machines and color concepts for the building and renovation industry, as well as specialty coatings for metal, wood, and other building materials. The company also provides performance coatings that protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. It offers its products primarily under Dulux, International, Sikkens, and Interpon brands. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.

How the Company Makes Money

Akzo Nobel generates revenue primarily through the sale of its paints, coatings, and specialty chemicals. Its revenue model is built on several key streams, including the sale of decorative paints to consumers and professionals, performance coatings for industrial applications, and specialty chemicals for various industries. The company benefits from strong brand recognition and a loyal customer base, which contribute to consistent sales. Additionally, Akzo Nobel engages in strategic partnerships and collaborations with other companies to expand its market reach and enhance product development. Factors such as increasing demand for sustainable products and innovations in coatings technology also play a significant role in driving the company's earnings.

Akzo Nobel NV Financial Statement Overview

Summary

Akzo Nobel NV shows stable financial health with moderate profitability and leverage. While operational efficiency is decent, stagnation in revenue growth and reliance on debt could pose risks if not managed properly. The cash flow reflects stable operations but indicates a need for improved cash generation and growth momentum.

Income Statement

Akzo Nobel NV's income statement shows moderate performance with a gross profit margin of 40.2% and a net profit margin of 4.4% for TTM. There is a slight revenue decline of 0.3% in TTM compared to the previous year, indicating stable but stagnant revenue growth. EBIT and EBITDA margins stand at 8.0% and 11.9% respectively, reflecting decent operational efficiency. However, the company's overall profitability is impacted by the declining revenue trend.

Balance Sheet

The balance sheet of Akzo Nobel NV reveals a debt-to-equity ratio of 1.27, suggesting a moderate leverage level. The return on equity (ROE) is 10.1%, which indicates satisfactory profitability relative to equity. The equity ratio of 31.1% signifies a balanced capital structure but highlights a reliance on debt. While the company maintains a stable asset base, the reliance on debt poses potential financial risk.

Cash Flow

Cash flow analysis shows a stable operating cash flow to net income ratio of 1.56, indicating efficient conversion of income into cash. However, the free cash flow growth rate is low at 7.6% compared to the previous period, and the free cash flow to net income ratio is 0.84, suggesting moderate cash generation relative to net income. The cash flow performance reflects stable operations but lacks significant growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.53B	10.71B	10.67B	10.85B	9.59B	8.53B
Gross Profit	4.20B	4.34B	4.23B	3.92B	3.85B	3.79B
EBITDA	1.24B	1.40B	1.41B	1.05B	1.50B	1.34B
Net Income	415.00M	542.00M	442.00M	352.00M	829.00M	630.00M
Balance Sheet
Total Assets	14.17B	14.25B	14.90B	14.74B	13.88B	13.18B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.47B	1.78B	1.79B	1.21B	1.86B
Total Debt	5.85B	5.37B	5.56B	5.88B	3.55B	2.89B
Total Liabilities	9.79B	9.43B	10.36B	10.19B	8.24B	7.23B
Stockholders Equity	4.17B	4.57B	4.32B	4.33B	5.42B	5.75B
Cash Flow
Free Cash Flow	480.00M	367.00M	840.00M	-29.00M	317.00M	962.00M
Operating Cash Flow	814.00M	673.00M	1.12B	263.00M	605.00M	1.22B
Investing Cash Flow	-261.00M	-132.00M	-144.00M	-1.09B	-134.00M	-427.00M
Financing Cash Flow	-24.00M	-684.00M	-827.00M	1.14B	-974.00M	-353.00M

Akzo Nobel NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:AKZA, the sentiment is Positive. The current price of 60.92 is above the 20-day moving average (MA) of 56.26, above the 50-day MA of 58.00, and above the 200-day MA of 56.80, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 65.85 is Neutral, neither overbought nor oversold. The STOCH value of 76.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:AKZA.

Akzo Nobel NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKZA	65 Neutral	€9.75B	23.48	9.60%	3.25%	-1.57%	-29.52%
Sector *	44 Neutral	AU$1.54B	-7.44	-18.84%	4.47%	-3.00%	-40.37%
0LO9	―	€761.71M	86.70	1.94%	―	―	―
0OLF	―	€1.90B	10.02	5.98%	―	―	―
0QHL	―	€985.10M	14.54	8.84%	―	―	―
0QVU	―	€5.64B	20.62	14.32%	―	―	―
DSFIR	60 Neutral	€22.24B	30.95		2.93%	4.46%	―