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

• Market Cap: €76.57M
• Dividend Yield: 7.7%
• Average Volume (3M): 461.00
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.28
• Revenue Growth: 4.14%
• EPS Growth: -29.16%
• Country: NL
• Employees: 394
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.44
• Shares Outstanding: 860,350
• 10 Day Avg. Volume: 861
• 30 Day Avg. Volume: 461
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €97.00 ▲(8.99% Upside)

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.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective business strategy, supporting long-term financial health.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Gross Profit Margin

High gross profit margins suggest efficient cost control and pricing power, contributing to sustainable profitability.

Negative Factors

Declining Free Cash Flow

Declining free cash flow may limit the company's ability to invest in growth opportunities and return capital to shareholders, impacting long-term prospects.

Earnings Growth Decline

A decline in earnings growth can signal challenges in maintaining profitability, potentially affecting investor confidence and future valuation.

Cash Conversion Efficiency

Lower cash conversion efficiency indicates potential inefficiencies in turning earnings into cash, which could affect liquidity and operational flexibility.

Holland Colours N.V. Business Overview & Revenue Model

Company Description

Holland Colours N.V., together with its subsidiaries, manufactures, distributes, and sells color concentrates in Europe, the Middle East, India, Africa, the Americas, Asia, Australia, and New Zealand. The company offers colorants for the building and construction industry, including profiles, pipes, tubing and fittings, siding and cladding, decking, fencing, window blinds, and insulation, as well as solutions for a wide range of polymers. It also provides colorants for packaging applications comprising beer/wine, black food trays, caps and closures, carbonated soft drink, condiments and dry food, cosmetics and personal care, dairy, detergents, fruit juices, mineral water, pharma, RTD-ready to drink tea, recycled pet, and spirits. In addition, the company offers sealants or adhesives; and colorants for other markets, such as shopping bags, polybags, mulch films, OPP tapes, PU flexible foams, synthetic leather, fiber glass and buttons, paving blocks, artificial stones, cast PMMA, PP non-woven and spunbond, coatings, flexible PVCs, prosthetics, glass fiber reinforced nylon, and silicone rubber and elastomers. It sells its products through a network of agents and distributors. The company was founded in 1979 and is headquartered in Apeldoorn, the Netherlands. Holland Colours N.V. is a subsidiary of Holland Pigments BV.

How the Company Makes Money

Holland Colours generates revenue primarily through the sale of its colorants and additives, which are essential for manufacturers looking to enhance the aesthetics and performance of their products. The company operates on a B2B model, supplying its solutions to various industries, which forms the bulk of its revenue streams. Additionally, Holland Colours benefits from long-term partnerships with key players in the plastics and coatings sectors, enabling it to secure consistent orders and foster customer loyalty. The company also invests in research and development to innovate new products that meet evolving market demands, driving further sales growth and diversifying its offerings.

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	112.34M	112.35M	103.28M	111.44M	110.47M	96.03M
Gross Profit	26.86M	55.57M	18.70M	15.49M	24.44M	22.20M
EBITDA	9.72M	11.63M	10.38M	10.66M	17.07M	15.39M
Net Income	4.53M	5.89M	5.18M	5.87M	10.18M	9.47M
Balance Sheet
Total Assets	73.48M	82.78M	78.40M	73.75M	79.62M	68.72M
Cash, Cash Equivalents and Short-Term Investments	10.48M	20.60M	18.52M	15.76M	16.96M	16.64M
Total Debt	778.00K	810.00K	1.10M	880.00K	1.28M	1.60M
Total Liabilities	14.97M	18.33M	16.94M	14.94M	21.87M	18.13M
Stockholders Equity	58.51M	64.45M	61.45M	58.81M	57.33M	50.26M
Cash Flow
Free Cash Flow	1.42M	5.11M	6.26M	4.64M	4.67M	12.57M
Operating Cash Flow	5.04M	7.33M	10.73M	8.52M	8.01M	14.52M
Investing Cash Flow	-3.55M	-2.07M	-4.45M	-4.30M	-3.32M	-1.95M
Financing Cash Flow	-6.38M	-3.05M	-3.60M	-5.72M	-4.73M	-3.92M

Holland Colours N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 89 is below the 20-day moving average (MA) of 90.32, below the 50-day MA of 93.58, and below the 200-day MA of 96.55, indicating a bearish trend. The MACD of -1.20 indicates Negative momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, 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	71 Outperform	€1.05B	15.48	8.84%	3.50%	-3.45%	-5.55%
HOLCO	66 Neutral	€76.57M	16.91	7.57%	7.70%	4.14%	-29.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IMCD	61 Neutral	€4.54B	16.80	14.32%	2.83%	6.09%	-7.18%
AKZA	55 Neutral	€10.00B	171.95	1.39%	3.38%	-2.03%	-89.67%
AVTX	46 Neutral	€165.76M	-3.23	-26.08%	―	-12.31%	23.77%
OCI	41 Neutral	€637.03M	-3.13	―	229.25%	―	―