Holland Colours N.V. (HOLCO) AI Stock Analysis

• Market Cap: €78.29M
• Dividend Yield: 7.53%
• Average Volume (3M): 252.00
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.32
• Revenue Growth: 4.14%
• EPS Growth: -29.16%
• Country: NL
• Employees: 394
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 7.43
• Shares Outstanding: 860,350
• 10 Day Avg. Volume: 243
• 30 Day Avg. Volume: 252
• PEG Ratio: 0.93
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 14.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 10.9
• Revenue Forecast (FY): €112.50M

• Rating: 66 Neutral
• Price Target: €97.00 ▼(-5.83% Downside)

Holland Colours N.V. has a solid financial foundation with strong revenue growth and a robust balance sheet, which are the most significant factors contributing to the score. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The stock's attractive valuation, with a reasonable P/E ratio and high dividend yield, provides a positive offset.

Holland Colours N.V. Business Overview & Revenue Model

Company Description

Holland Colours N.V. (HOLCO) is a multinational company specializing in the production of colorants and additives for the plastics industry. Founded in 1979 and headquartered in the Netherlands, the company operates across various sectors, including packaging, construction, and automotive. Holland Colours offers a wide range of products, including masterbatches, color concentrates, and specialty additives designed to enhance the performance and aesthetic appeal of plastic materials.

How the Company Makes Money

Holland Colours generates revenue primarily through the sale of its colorants and additives to manufacturers in the plastics industry. The company's revenue model is based on selling customized solutions that meet specific client needs, which allows for premium pricing. Key revenue streams include direct sales to clients, as well as long-term contracts with major manufacturers. Significant partnerships with large companies in the packaging and construction sectors contribute to its earnings, as these collaborations often lead to bulk orders and repeat business. Additionally, Holland Colours invests in research and development to innovate new products and improve existing offerings, which helps maintain a competitive edge and drive sales growth.

Holland Colours N.V. Financial Statement Overview

Summary

Holland Colours N.V. demonstrates solid financial performance with consistent revenue growth and strong cost management, as evidenced by a gross profit margin of 49.4%. The balance sheet is robust with low leverage, indicated by a debt-to-equity ratio of 0.01 and a strong equity ratio of 77.9%. However, there is room for improvement in cash flow efficiency, as free cash flow has declined.

Income Statement

Holland Colours N.V. demonstrates solid performance with a consistent revenue growth rate over the years, highlighted by a notable increase from 103.3M to 112.3M in the latest annual report. The gross profit margin stands at 49.4%, indicating strong cost management. Net profit margin has slightly improved to 5.2%, showing efficient control over expenses, although there's room for improvement. The EBIT and EBITDA margins are stable at 7.1% and 10.4% respectively, suggesting sound operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with low leverage as evidenced by a debt-to-equity ratio of 0.01. The equity ratio is strong at 77.9%, reflecting a stable financial structure with significant asset backing. Return on equity is modest at 9.1%, indicating reasonable returns for shareholders. Overall, the balance sheet suggests financial stability and low risk.

Cash Flow

The cash flow statement shows a positive but moderate performance. Free cash flow has seen a decline from 6.26M to 5.11M, indicating some challenges in cash generation. However, the operating cash flow to net income ratio is healthy at 1.24, demonstrating adequate cash generation relative to reported earnings. The free cash flow to net income ratio is slightly lower at 0.87, suggesting room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.35M	112.35M	103.28M	111.44M	110.47M	96.03M
Gross Profit	27.91M	55.57M	18.70M	15.49M	24.44M	22.20M
EBITDA	11.63M	11.63M	10.38M	10.66M	17.07M	15.39M
Net Income	5.89M	5.89M	5.18M	5.87M	10.18M	9.47M
Balance Sheet
Total Assets	82.78M	82.78M	78.40M	73.75M	79.62M	68.72M
Cash, Cash Equivalents and Short-Term Investments	20.60M	20.60M	18.52M	15.76M	16.96M	16.64M
Total Debt	810.00K	810.00K	1.10M	880.00K	1.28M	1.60M
Total Liabilities	18.33M	18.33M	16.94M	14.94M	21.87M	18.13M
Stockholders Equity	64.45M	64.45M	61.45M	58.81M	57.33M	50.26M
Cash Flow
Free Cash Flow	5.13M	5.11M	6.26M	4.64M	4.67M	12.57M
Operating Cash Flow	7.33M	7.33M	10.73M	8.52M	8.01M	14.52M
Investing Cash Flow	-2.07M	-2.07M	-4.45M	-4.30M	-3.32M	-1.95M
Financing Cash Flow	-3.05M	-3.05M	-3.60M	-5.72M	-4.73M	-3.92M

Holland Colours N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:HOLCO, the sentiment is Negative. The current price of 103 is above the 20-day moving average (MA) of 98.85, above the 50-day MA of 101.90, and above the 200-day MA of 95.64, indicating a bearish trend. The MACD of -3.28 indicates Positive momentum. The RSI at 27.86 is Positive, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:HOLCO.

Holland Colours N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRBN	75 Outperform	€1.02B	15.04	8.84%	3.62%	-3.45%	-5.55%
HOLCO	66 Neutral	€78.29M	17.29	7.57%	7.53%	4.14%	-29.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IMCD	61 Neutral	€5.14B	19.02	14.32%	2.61%	6.09%	-7.18%
AKZA	55 Neutral	€9.63B	165.48	1.39%	3.44%	-2.03%	-89.67%
OCI	44 Neutral	€717.13M	-3.52	―	87.90%	―	―
AVTX	38 Underperform	€153.70M	-2.99	-26.08%	―	-12.31%	23.77%