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AKZO NOBEL N.V. (AKZA.AS) Stock Fundamental Analysis

AMS:AKZA - Euronext Amsterdam - NL0013267909 - Common Stock

59.38  -0.16 (-0.27%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AKZA. AKZA was compared to 62 industry peers in the Chemicals industry. AKZA scores excellent on profitability, but there are concerns on its financial health. AKZA has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year AKZA was profitable.
AKZA had a positive operating cash flow in the past year.
Each year in the past 5 years AKZA has been profitable.
In the past 5 years AKZA always reported a positive cash flow from operatings.
AKZA.AS Yearly Net Income VS EBIT VS OCF VS FCFAKZA.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

1.2 Ratios

AKZA's Return On Assets of 3.66% is fine compared to the rest of the industry. AKZA outperforms 65.52% of its industry peers.
AKZA's Return On Equity of 12.28% is fine compared to the rest of the industry. AKZA outperforms 79.31% of its industry peers.
The Return On Invested Capital of AKZA (6.65%) is better than 74.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AKZA is in line with the industry average of 6.48%.
The 3 year average ROIC (5.81%) for AKZA is below the current ROIC(6.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.66%
ROE 12.28%
ROIC 6.65%
ROA(3y)3.8%
ROA(5y)4.07%
ROE(3y)11.21%
ROE(5y)10.62%
ROIC(3y)5.81%
ROIC(5y)5.75%
AKZA.AS Yearly ROA, ROE, ROICAKZA.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

1.3 Margins

The Profit Margin of AKZA (5.29%) is better than 70.69% of its industry peers.
AKZA's Profit Margin has declined in the last couple of years.
AKZA has a Operating Margin of 9.45%. This is in the better half of the industry: AKZA outperforms 74.14% of its industry peers.
In the last couple of years the Operating Margin of AKZA has grown nicely.
Looking at the Gross Margin, with a value of 40.82%, AKZA is in the better half of the industry, outperforming 60.34% of the companies in the same industry.
In the last couple of years the Gross Margin of AKZA has remained more or less at the same level.
Industry RankSector Rank
OM 9.45%
PM (TTM) 5.29%
GM 40.82%
OM growth 3Y-5.11%
OM growth 5Y8.09%
PM growth 3Y-17.53%
PM growth 5Y-43.52%
GM growth 3Y-3.65%
GM growth 5Y-1.33%
AKZA.AS Yearly Profit, Operating, Gross MarginsAKZA.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AKZA is creating some value.
The number of shares outstanding for AKZA has been increased compared to 1 year ago.
Compared to 5 years ago, AKZA has less shares outstanding
Compared to 1 year ago, AKZA has an improved debt to assets ratio.
AKZA.AS Yearly Shares OutstandingAKZA.AS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
AKZA.AS Yearly Total Debt VS Total AssetsAKZA.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

An Altman-Z score of 2.04 indicates that AKZA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AKZA (2.04) is comparable to the rest of the industry.
AKZA has a debt to FCF ratio of 11.66. This is a negative value and a sign of low solvency as AKZA would need 11.66 years to pay back of all of its debts.
AKZA has a Debt to FCF ratio of 11.66. This is in the better half of the industry: AKZA outperforms 62.07% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that AKZA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, AKZA is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 11.66
Altman-Z 2.04
ROIC/WACC1.27
WACC5.24%
AKZA.AS Yearly LT Debt VS Equity VS FCFAKZA.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.21 indicates that AKZA should not have too much problems paying its short term obligations.
The Current ratio of AKZA (1.21) is worse than 86.21% of its industry peers.
A Quick Ratio of 0.89 indicates that AKZA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.89, AKZA is doing worse than 74.14% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 0.89
AKZA.AS Yearly Current Assets VS Current LiabilitesAKZA.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 33.45% over the past year.
Measured over the past 5 years, AKZA shows a small growth in Earnings Per Share. The EPS has been growing by 2.33% on average per year.
Looking at the last year, AKZA shows a decrease in Revenue. The Revenue has decreased by -1.15% in the last year.
Measured over the past years, AKZA shows a small growth in Revenue. The Revenue has been growing by 2.88% on average per year.
EPS 1Y (TTM)33.45%
EPS 3Y-7.59%
EPS 5Y2.33%
EPS Q2Q%15.15%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y7.74%
Revenue growth 5Y2.88%
Sales Q2Q%-2.66%

3.2 Future

AKZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.66% yearly.
Based on estimates for the next years, AKZA will show a small growth in Revenue. The Revenue will grow by 3.63% on average per year.
EPS Next Y37.02%
EPS Next 2Y22.78%
EPS Next 3Y18.75%
EPS Next 5Y13.66%
Revenue Next Year0.12%
Revenue Next 2Y1.3%
Revenue Next 3Y1.83%
Revenue Next 5Y3.63%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
AKZA.AS Yearly Revenue VS EstimatesAKZA.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
AKZA.AS Yearly EPS VS EstimatesAKZA.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

AKZA is valuated correctly with a Price/Earnings ratio of 15.83.
75.86% of the companies in the same industry are more expensive than AKZA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AKZA to the average of the S&P500 Index (28.19), we can say AKZA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.83, the valuation of AKZA can be described as correct.
Based on the Price/Forward Earnings ratio, AKZA is valued a bit cheaper than 62.07% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AKZA to the average of the S&P500 Index (24.37), we can say AKZA is valued slightly cheaper.
Industry RankSector Rank
PE 15.83
Fwd PE 12.83
AKZA.AS Price Earnings VS Forward Price EarningsAKZA.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AKZA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AKZA indicates a somewhat cheap valuation: AKZA is cheaper than 74.14% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.92
EV/EBITDA 10.2
AKZA.AS Per share dataAKZA.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

AKZA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AKZA may justify a higher PE ratio.
AKZA's earnings are expected to grow with 18.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)6.8
EPS Next 2Y22.78%
EPS Next 3Y18.75%

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3

5. Dividend

5.1 Amount

AKZA has a Yearly Dividend Yield of 3.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.06, AKZA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, AKZA pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.39%

5.2 History

The dividend of AKZA decreases each year by -5.10%.
Dividend Growth(5Y)-5.1%
Div Incr Years0
Div Non Decr Years4
AKZA.AS Yearly Dividends per shareAKZA.AS Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2 4 6

5.3 Sustainability

65.12% of the earnings are spent on dividend by AKZA. This is not a sustainable payout ratio.
DP65.12%
EPS Next 2Y22.78%
EPS Next 3Y18.75%
AKZA.AS Yearly Income VS Free CF VS DividendAKZA.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B
AKZA.AS Dividend Payout.AKZA.AS Dividend Payout, showing the Payout Ratio.AKZA.AS Dividend Payout.PayoutRetained Earnings

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AKZO NOBEL N.V.

AMS:AKZA (1/23/2025, 2:21:36 PM)

59.38

-0.16 (-0.27%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)10-23 2024-10-23/bmo
Earnings (Next)01-29 2025-01-29/amc
Inst Owners59.07%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap10.14B
Analysts76.3
Price Target74.97 (26.25%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.39%
Yearly Dividend2.16
Dividend Growth(5Y)-5.1%
DP65.12%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.47%
Min EPS beat(2)-6.84%
Max EPS beat(2)-2.11%
EPS beat(4)1
Avg EPS beat(4)-4.82%
Min EPS beat(4)-37.45%
Max EPS beat(4)27.12%
EPS beat(8)2
Avg EPS beat(8)-11.92%
EPS beat(12)4
Avg EPS beat(12)-11.12%
EPS beat(16)6
Avg EPS beat(16)-6.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-4.61%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)-0.19%
Revenue beat(8)2
Avg Revenue beat(8)-1.34%
Revenue beat(12)2
Avg Revenue beat(12)-1.55%
Revenue beat(16)3
Avg Revenue beat(16)-1.4%
PT rev (1m)-0.08%
PT rev (3m)0.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 15.83
Fwd PE 12.83
P/S 0.95
P/FCF 18.92
P/OCF 12.04
P/B 2.22
P/tB 17.89
EV/EBITDA 10.2
EPS(TTM)3.75
EY6.32%
EPS(NY)4.63
Fwd EY7.79%
FCF(TTM)3.14
FCFY5.29%
OCF(TTM)4.93
OCFY8.3%
SpS62.19
BVpS26.8
TBVpS3.32
PEG (NY)0.43
PEG (5Y)6.8
Profitability
Industry RankSector Rank
ROA 3.66%
ROE 12.28%
ROCE 10.5%
ROIC 6.65%
ROICexc 8.61%
ROICexgc 18.86%
OM 9.45%
PM (TTM) 5.29%
GM 40.82%
FCFM 5.05%
ROA(3y)3.8%
ROA(5y)4.07%
ROE(3y)11.21%
ROE(5y)10.62%
ROIC(3y)5.81%
ROIC(5y)5.75%
ROICexc(3y)6.98%
ROICexc(5y)6.89%
ROICexgc(3y)12.89%
ROICexgc(5y)12.44%
ROCE(3y)10.64%
ROCE(5y)9.98%
ROICexcg growth 3Y7.31%
ROICexcg growth 5Y7.64%
ROICexc growth 3Y2.7%
ROICexc growth 5Y7.61%
OM growth 3Y-5.11%
OM growth 5Y8.09%
PM growth 3Y-17.53%
PM growth 5Y-43.52%
GM growth 3Y-3.65%
GM growth 5Y-1.33%
F-Score7
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 11.66
Debt/EBITDA 2.67
Cap/Depr 82.7%
Cap/Sales 2.88%
Interest Coverage 5.55
Cash Conversion 61.28%
Profit Quality 95.37%
Current Ratio 1.21
Quick Ratio 0.89
Altman-Z 2.04
F-Score7
WACC5.24%
ROIC/WACC1.27
Cap/Depr(3y)80.5%
Cap/Depr(5y)74.48%
Cap/Sales(3y)2.79%
Cap/Sales(5y)2.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.45%
EPS 3Y-7.59%
EPS 5Y2.33%
EPS Q2Q%15.15%
EPS Next Y37.02%
EPS Next 2Y22.78%
EPS Next 3Y18.75%
EPS Next 5Y13.66%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y7.74%
Revenue growth 5Y2.88%
Sales Q2Q%-2.66%
Revenue Next Year0.12%
Revenue Next 2Y1.3%
Revenue Next 3Y1.83%
Revenue Next 5Y3.63%
EBIT growth 1Y9.37%
EBIT growth 3Y2.23%
EBIT growth 5Y11.21%
EBIT Next Year37.61%
EBIT Next 3Y16.79%
EBIT Next 5Y13.29%
FCF growth 1Y445.81%
FCF growth 3Y-4.55%
FCF growth 5Y18.76%
OCF growth 1Y501.43%
OCF growth 3Y-2.73%
OCF growth 5Y16.9%