Akzo Nobel NV (AKZA) AI Stock Analysis

• Market Cap: €10.01B
• Dividend Yield: 3.38%
• Average Volume (3M): 372.10K
• Price to Earnings (P/E): 172.0
• Beta (1Y): 0.78
• Revenue Growth: -2.03%
• EPS Growth: -89.67%
• Country: NL
• Employees: 34,100
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.01
• Shares Outstanding: 171,041,670
• 10 Day Avg. Volume: 339,692
• 30 Day Avg. Volume: 372,104
• 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: €70.14
• Price Target Upside: 19.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €60.00 ▲(2.60% Upside)

Akzo Nobel NV's overall stock score is driven by stable financial performance with strong gross profit margins and cash flow growth. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals with potential overbought conditions. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strategic Merger

The merger with Axalta is expected to create a global coatings leader, enhancing market position and driving significant synergies, which can improve profitability and cash flow generation over the long term.

Cash Flow Growth

Sustained growth in free cash flow indicates strong cash generation ability, providing financial flexibility for investments and debt management, supporting long-term business sustainability.

Gross Profit Margins

Strong gross profit margins highlight efficient cost management and pricing power, which are crucial for maintaining profitability and competitive advantage in the long term.

Negative Factors

Declining Revenue Growth

The decline in revenue growth suggests challenges in market expansion and demand, which may affect long-term growth prospects and require strategic adjustments.

High Leverage

High leverage can strain financial stability and limit flexibility, posing risks to long-term operations, especially in volatile market conditions.

Profitability Margins Decline

Declining profitability margins reflect reduced operational efficiency, which may impact the company's ability to invest in growth and innovation over time.

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. The company's revenue model is based on both direct sales to customers and partnerships with distributors. Key revenue streams include decorative paints for retail customers, performance coatings for industrial applications, and specialty chemicals for various sectors, including automotive and construction. Significant partnerships with industry players enhance its market presence and facilitate innovation. Additionally, Akzo Nobel benefits from a strong focus on sustainability and innovation, which drives demand for its eco-friendly products and solutions.

Akzo Nobel NV Financial Statement Overview

Summary

Akzo Nobel NV shows a stable financial position with strong cash flow generation and healthy gross profit margins. However, challenges in revenue growth and high leverage pose risks to future profitability and financial flexibility.

Income Statement

Akzo Nobel NV's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 39.85%, indicating efficient cost management. However, the net profit margin has decreased to 3.94%, reflecting pressure on bottom-line profitability. Revenue growth has been negative recently, with a decline of 1.48% in the TTM period, suggesting challenges in market expansion or competitive pressures. EBIT and EBITDA margins have also seen a decline, indicating reduced operational efficiency.

Balance Sheet

The balance sheet reveals a relatively high debt-to-equity ratio of 1.40 in the TTM period, indicating significant leverage which could pose financial risk. Return on equity is moderate at 9.25%, showing decent profitability relative to shareholder equity. The equity ratio stands at 29.44%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis shows positive trends, with a free cash flow growth rate of 21.52% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.16, reflecting adequate cash conversion from earnings. The free cash flow to net income ratio is 0.59, suggesting a solid ability to generate cash relative to net income, despite some volatility in previous periods.

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	1.53B	1.33B
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: 58.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 58.48 is above the 20-day moving average (MA) of 56.35, above the 50-day MA of 57.12, and above the 200-day MA of 57.51, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 81.79 is Negative, 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
CRBN	71 Outperform	€1.05B	15.56	8.84%	3.50%	-3.45%	-5.55%
APAM	65 Neutral	€2.43B	-310.05	-0.24%	5.41%	-2.24%	-102.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IMCD	61 Neutral	€4.49B	16.60	14.32%	2.83%	6.09%	-7.18%
DSFIR	58 Neutral	€18.27B	25.42	―	3.61%	4.46%	―
AKZA	55 Neutral	€10.01B	172.01	1.39%	3.38%	-2.03%	-89.67%
AMG	55 Neutral	€819.06M	26.85	6.84%	1.46%	9.94%	―