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

• Market Cap: €87.76M
• Dividend Yield: 6.78%
• Average Volume (3M): 481.00
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.43
• Revenue Growth: 8.77%
• EPS Growth: 13.66%
• Country: NL
• Employees: 394
• Sector: Basic Materials
• Sector Strength: 55
• Industry: Chemicals - Specialty
• EPS (TTM): 7.43
• Shares Outstanding: 860,350
• 10 Day Avg. Volume: 136
• 30 Day Avg. Volume: 481
• PEG Ratio: -2.00
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.94
• 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

• Rating: 72 Outperform
• Price Target: €113.00 ▲(11.88%Upside)

Holland Colours N.V. scores well due to its strong financial performance and attractive valuation. However, mixed technical indicators suggest caution. The company's robust balance sheet and high dividend yield provide a buffer against market volatility.

Holland Colours N.V. Business Overview & Revenue Model

Company Description

Holland Colours N.V. (HOLCO) is a global leader in the production of color concentrates and additives for various industries, including building and construction, packaging, and coatings. Headquartered in the Netherlands, the company specializes in creating high-performance, sustainable color solutions that enhance the aesthetic and functional qualities of products. With a strong commitment to innovation and customer service, Holland Colours serves a diverse range of clients worldwide, offering customized solutions tailored to specific industry needs.

How the Company Makes Money

Holland Colours N.V. generates revenue primarily through the sale of its color concentrates and additive products. The company operates in several key markets, including building and construction, where its color solutions are used for PVC applications; in packaging, where it provides colorants for PET, polyolefins, and other plastics; and in coatings, where its products are used to enhance visual and functional properties. Its revenue model is heavily reliant on establishing long-term relationships with industry partners, providing tailored solutions to meet specific client demands. Additionally, Holland Colours benefits from its global reach, with production facilities and sales offices in strategic locations that allow it to efficiently serve customers across different regions. This international presence, coupled with a focus on sustainability and innovation, significantly contributes to the company's earnings.

Holland Colours N.V. Financial Statement Overview

Summary

Holland Colours N.V. demonstrates solid financial performance with consistent revenue growth, a strong gross profit margin, and efficient operational efficiency. The balance sheet is robust with low leverage and a strong equity base, although there is room for improvement in free cash flow efficiency.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	112.35M	103.28M	111.44M	110.47M	96.03M
Gross Profit	55.57M	18.70M	15.49M	24.44M	22.20M
EBITDA	11.63M	10.38M	10.66M	17.07M	15.39M
Net Income	5.89M	5.18M	5.87M	10.18M	9.47M
Balance Sheet
Total Assets	82.78M	78.40M	73.75M	79.62M	68.72M
Cash, Cash Equivalents and Short-Term Investments	20.60M	18.52M	15.76M	16.96M	16.64M
Total Debt	810.00K	1.10M	880.00K	1.28M	1.60M
Total Liabilities	18.33M	16.94M	14.94M	21.87M	18.13M
Stockholders Equity	64.45M	61.45M	58.81M	57.33M	50.26M
Cash Flow
Free Cash Flow	5.11M	6.26M	4.64M	4.67M	12.57M
Operating Cash Flow	7.33M	10.73M	8.52M	8.01M	14.52M
Investing Cash Flow	-2.07M	-4.45M	-4.30M	-3.32M	-1.95M
Financing Cash Flow	-3.05M	-3.60M	-5.72M	-4.73M	-3.92M

Holland Colours N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 101 is below the 20-day moving average (MA) of 104.41, below the 50-day MA of 103.54, and above the 200-day MA of 89.72, indicating a neutral trend. The MACD of -0.74 indicates Positive momentum. The RSI at 43.20 is Neutral, 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
HYDRA	73 Outperform	€213.17M	11.68		3.66%	-4.44%	15.98%
HOLCO	72 Outperform	€87.76M	14.90	9.36%	6.78%	8.77%	13.66%
IMCD	63 Neutral	€5.68B	21.04	14.32%	2.20%	6.09%	-7.18%
AKZA	61 Neutral	€9.42B	22.68	9.60%	3.43%	-1.57%	-29.52%
SIFG	52 Neutral	€254.35M	212.22	0.50%	―	-5.57%	-89.46%
KENDR	46 Neutral	€172.83M	―	2.99%	4.09%	-33.34%	-151.20%
Sector *	44 Neutral	AU$1.45B	-6.08	-41.46%	4.25%	-2.94%	-41.86%