Akzo Nobel NV (AKZA) AI Stock Analysis

• Market Cap: €10.35B
• Dividend Yield: 4.41%
• Average Volume (3M): 452.80K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.74
• Revenue Growth: 0.31%
• EPS Growth: -11.62%
• Country: NL
• Employees: 34,100
• Sector: Industrials
• Sector Strength: 89
• Industry: Chemicals - Specialty
• EPS (TTM): 0.94
• Shares Outstanding: 170,784,640
• 10 Day Avg. Volume: 396,237
• 30 Day Avg. Volume: 452,803
• 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: €68.91
• Price Target Upside: 13.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: €62.00 ▲(2.31%Upside)

Akzo Nobel NV's stock score is primarily driven by its stable financial performance and fair valuation. The technical analysis suggests a neutral to slightly bearish short-term outlook, impacting the overall score. The lack of significant growth momentum and potential risks from leverage are noteworthy considerations.

Akzo Nobel NV Business Overview & Revenue Model

Company Description

Akzo Nobel NV (AKZA) is a leading global paints and coatings company headquartered in the Netherlands. The company operates in two primary sectors: Decorative Paints and Performance Coatings. Akzo Nobel offers a wide range of products, including decorative paints, performance coatings, and specialty chemicals, serving industries such as automotive, marine, and construction. The company is known for its commitment to sustainability and innovation in producing high-quality, durable, and environmentally friendly products.

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
EBITDA	1.27B	1.40B	1.41B	1.05B	1.50B	1.34B
Net Income	468.00M	542.00M	442.00M	352.00M	829.00M	630.00M
Balance Sheet
Total Assets	14.85B	14.25B	14.90B	14.74B	13.88B	13.18B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.47B	1.78B	1.79B	1.21B	1.86B
Total Debt	5.89B	5.37B	5.56B	5.88B	3.55B	2.89B
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: Positive
• Last Price: 60.60
• 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 60.6 is above the 20-day moving average (MA) of 59.08, above the 50-day MA of 59.04, and above the 200-day MA of 57.13, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 63.44 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
LIGHT	80 Outperform	€2.82B	8.05	11.61%	6.97%	-5.73%	57.95%
TWEKA	76 Outperform	€1.57B	15.30	11.59%	3.92%	-7.30%	-36.81%
IMCD	68 Neutral	€6.67B	23.23	14.13%	1.90%	6.41%	-5.29%
AALB	67 Neutral	€3.41B	19.04	7.15%	3.66%	-5.28%	-43.29%
AKZA	64 Neutral	€10.35B	22.11	10.15%	4.41%	0.31%	-11.62%
Sector *	59 Neutral	AU$1.63B	9.65	11.24%	3.67%	6.75%	3.18%
OCI	56 Neutral	€1.59B	58.27		108.02%	―	―