Akzo Nobel NV (AKZA) AI Stock Analysis

• Market Cap: €9.95B
• Dividend Yield: 3.38%
• Average Volume (3M): 415.15K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.77
• Revenue Growth: 0.31%
• EPS Growth: -11.62%
• Country: NL
• Employees: 34,100
• Sector: Industrials
• Sector Strength: 90
• Industry: Chemicals - Specialty
• EPS (TTM): 0.94
• Shares Outstanding: 170,784,640
• 10 Day Avg. Volume: 493,861
• 30 Day Avg. Volume: 415,147
• PEG Ratio: -1.59
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.61
• 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: €70.17
• Price Target Upside: 19.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: €64.00 ▲(8.95%Upside)

Akzo Nobel NV presents a stable investment opportunity with moderate financial health and decent technical indicators. The company's reliance on debt and stagnant revenue growth are key risks, but the fair valuation and attractive dividend yield provide a balanced outlook. Technical analysis indicates upward momentum, though caution is advised due to potential overbought conditions.

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 NV generates revenue primarily through the sale of its decorative paints and performance coatings. The Decorative Paints segment focuses on products for both consumer and professional markets, offering a variety of indoor and outdoor paints, lacquers, and varnishes. The Performance Coatings segment provides coatings for industrial applications, including automotive, aerospace, and marine industries. Key revenue streams include direct sales to consumers, as well as partnerships and contracts with businesses and industrial clients. The company also invests in innovation and sustainability, which enhances its market position and attracts environmentally conscious customers. Strategic acquisitions and a global distribution network further bolster its earnings by expanding market reach and product offerings.

Akzo Nobel NV Financial Statement Overview

Summary

Overall, Akzo Nobel NV demonstrates stable financial health with moderate profitability and leverage. While operational efficiency is decent, the 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
10.68B	10.71B	10.67B	10.85B	9.59B	8.53B
	Gross Profit
4.30B	4.34B	4.23B	3.92B	3.85B	3.79B
	EBIT
852.00M	917.00M	1.03B	708.00M	1.12B	963.00M
	EBITDA
1.27B	1.40B	1.41B	1.05B	1.50B	1.34B
	Net Income Common Stockholders
468.00M	542.00M	442.00M	352.00M	829.00M	630.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.77B	1.47B	1.78B	1.79B	1.21B	1.86B
	Total Assets
14.85B	14.25B	14.90B	14.74B	13.88B	13.18B
	Total Debt
5.89B	5.37B	5.56B	5.88B	3.55B	2.89B
	Net Debt
4.29B	4.07B	4.05B	4.42B	2.40B	1.28B
	Total Liabilities
9.99B	9.43B	10.36B	10.19B	8.24B	7.23B
	Stockholders Equity
4.62B	4.57B	4.32B	4.33B	5.42B	5.75B
Cash Flow		Free Cash Flow
395.00M	367.00M	840.00M	-29.00M	317.00M	962.00M
	Operating Cash Flow
731.00M	673.00M	1.12B	263.00M	605.00M	1.22B
	Investing Cash Flow
-415.00M	-132.00M	-144.00M	-1.09B	-134.00M	-427.00M
	Financing Cash Flow
368.00M	-684.00M	-827.00M	1.14B	-974.00M	-353.00M

Akzo Nobel NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 58.74
• 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 NL:AKZA, the sentiment is Neutral. The current price of 58.74 is below the 20-day moving average (MA) of 59.49, above the 50-day MA of 56.07, and above the 200-day MA of 56.78, indicating a neutral trend. The MACD of 0.63 indicates Positive momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 22.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	€9.95B	21.26	10.15%	3.38%	0.31%	-11.62%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
0NX1		€3.45B	19.30	7.15%	3.87%	―	―
0QVU		€6.92B	24.16	14.13%	1.83%	―	―
0QGH		€1.58B	59.30		41.95%	―	―
0RHI		€2.72B	7.78	11.61%	7.21%	―	―
0NO1		€1.58B	15.05	11.59%	3.99%	―	―