AKZO NOBEL N.V. (AKZA.AS) Stock Fundamental Analysis
AMS:AKZA - Euronext Amsterdam - NL0013267909 - Common Stock - Currency: EUR
AKZA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 industry peers in the Chemicals industry. There are concerns on the financial health of AKZA while its profitability can be described as average. AKZA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AKZA was profitable.
In the past year AKZA had a positive cash flow from operations.
Each year in the past 5 years AKZA has been profitable.
AKZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.15%, AKZA is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.12%, AKZA is in the better half of the industry, outperforming 67.16% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.60%, AKZA is doing good in the industry, outperforming 65.67% of the companies in the same industry.
AKZA had an Average Return On Invested Capital over the past 3 years of 5.38%. This is in line with the industry average of 6.53%.
The last Return On Invested Capital (5.60%) for AKZA is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 10.12% | ||
| ROIC | 5.6% |
ROA(3y)3.08%
ROA(5y)4%
ROE(3y)10.07%
ROE(5y)11.29%
ROIC(3y)5.38%
ROIC(5y)6.02%
1.3 Margins
Looking at the Profit Margin, with a value of 4.38%, AKZA is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
AKZA's Profit Margin has declined in the last couple of years.
AKZA's Operating Margin of 7.94% is fine compared to the rest of the industry. AKZA outperforms 64.18% of its industry peers.
In the last couple of years the Operating Margin of AKZA has remained more or less at the same level.
AKZA's Gross Margin of 40.23% is in line compared to the rest of the industry. AKZA outperforms 58.21% of its industry peers.
AKZA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.94% | ||
| PM (TTM) | 4.38% | ||
| GM | 40.23% |
OM growth 3Y-9.79%
OM growth 5Y-1.14%
PM growth 3Y-16.36%
PM growth 5Y-2.73%
GM growth 3Y-0.19%
GM growth 5Y-1.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AKZA is destroying value.
AKZA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AKZA has been reduced compared to 5 years ago.
The debt/assets ratio for AKZA has been reduced compared to a year ago.
2.2 Solvency
AKZA has an Altman-Z score of 2.12. This is not the best score and indicates that AKZA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.12, AKZA is in line with its industry, outperforming 50.75% of the companies in the same industry.
The Debt to FCF ratio of AKZA is 15.02, which is on the high side as it means it would take AKZA, 15.02 years of fcf income to pay off all of its debts.
AKZA's Debt to FCF ratio of 15.02 is in line compared to the rest of the industry. AKZA outperforms 52.24% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that AKZA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.90, AKZA is doing worse than 73.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 15.02 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.94
WACC5.99%
2.3 Liquidity
AKZA has a Current Ratio of 1.36. This is a normal value and indicates that AKZA is financially healthy and should not expect problems in meeting its short term obligations.
AKZA has a Current ratio of 1.36. This is in the lower half of the industry: AKZA underperforms 76.12% of its industry peers.
AKZA has a Quick Ratio of 1.36. This is a bad value and indicates that AKZA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, AKZA perfoms like the industry average, outperforming 40.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.23% 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 4.44% on average per year.
AKZA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.31%.
AKZA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.92% yearly.
EPS 1Y (TTM)7.23%
EPS 3Y-1.33%
EPS 5Y4.44%
EPS Q2Q%-16.07%
Revenue 1Y (TTM)0.31%
Revenue growth 3Y3.76%
Revenue growth 5Y2.92%
Sales Q2Q%-1.02%
3.2 Future
AKZA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.44% yearly.
AKZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y15.13%
EPS Next 2Y13.67%
EPS Next 3Y11.33%
EPS Next 5Y7.44%
Revenue Next Year0.88%
Revenue Next 2Y1.63%
Revenue Next 3Y1.99%
Revenue Next 5Y2.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.65, AKZA is valued correctly.
Based on the Price/Earnings ratio, AKZA is valued a bit cheaper than 73.13% of the companies in the same industry.
AKZA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.56 indicates a reasonable valuation of AKZA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AKZA indicates a somewhat cheap valuation: AKZA is cheaper than 74.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. AKZA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
AKZA's Enterprise Value to EBITDA ratio is in line with the industry average.
61.19% of the companies in the same industry are more expensive than AKZA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.3 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AKZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)3.52
EPS Next 2Y13.67%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, AKZA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, AKZA pays a bit more dividend than its industry peers.
AKZA's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of AKZA decreases each year by -21.52%.
Dividend Growth(5Y)-21.52%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
81.84% of the earnings are spent on dividend by AKZA. This is not a sustainable payout ratio.
DP81.84%
EPS Next 2Y13.67%
EPS Next 3Y11.33%
AMS:AKZA (6/13/2025, 7:00:00 PM)
58.08
-1.62 (-2.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners63.22%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap9.92B
Analysts77.69
Price Target71.82 (23.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend1.98
Dividend Growth(5Y)-21.52%
DP81.84%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.89%
Min EPS beat(2)-27.6%
Max EPS beat(2)-4.18%
EPS beat(4)0
Avg EPS beat(4)-10.18%
Min EPS beat(4)-27.6%
Max EPS beat(4)-2.11%
EPS beat(8)1
Avg EPS beat(8)-11.08%
EPS beat(12)2
Avg EPS beat(12)-14.56%
EPS beat(16)4
Avg EPS beat(16)-11.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.21%
Min Revenue beat(2)-2.21%
Max Revenue beat(2)1.79%
Revenue beat(4)1
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-4.61%
Max Revenue beat(4)1.79%
Revenue beat(8)2
Avg Revenue beat(8)-1.16%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)3
Avg Revenue beat(16)-1.49%
PT rev (1m)0.99%
PT rev (3m)-1.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 11.56 | ||
| P/S | 0.93 | ||
| P/FCF | 25.3 | ||
| P/OCF | 13.62 | ||
| P/B | 2.15 | ||
| P/tB | 15.67 | ||
| EV/EBITDA | 11.32 |
EPS(TTM)3.71
EY6.39%
EPS(NY)5.03
Fwd EY8.65%
FCF(TTM)2.3
FCFY3.95%
OCF(TTM)4.26
OCFY7.34%
SpS62.56
BVpS27.08
TBVpS3.71
PEG (NY)1.03
PEG (5Y)3.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 10.12% | ||
| ROCE | 8.43% | ||
| ROIC | 5.6% | ||
| ROICexc | 6.8% | ||
| ROICexgc | 13.12% | ||
| OM | 7.94% | ||
| PM (TTM) | 4.38% | ||
| GM | 40.23% | ||
| FCFM | 3.67% |
ROA(3y)3.08%
ROA(5y)4%
ROE(3y)10.07%
ROE(5y)11.29%
ROIC(3y)5.38%
ROIC(5y)6.02%
ROICexc(3y)6.53%
ROICexc(5y)7.21%
ROICexgc(3y)12.06%
ROICexgc(5y)13.03%
ROCE(3y)9.71%
ROCE(5y)10.22%
ROICexcg growth 3Y-10.53%
ROICexcg growth 5Y-0.19%
ROICexc growth 3Y-9.99%
ROICexc growth 5Y-0.31%
OM growth 3Y-9.79%
OM growth 5Y-1.14%
PM growth 3Y-16.36%
PM growth 5Y-2.73%
GM growth 3Y-0.19%
GM growth 5Y-1.09%
F-Score4
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 15.02 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 89.36% | ||
| Cap/Sales | 3.14% | ||
| Interest Coverage | 5.08 | ||
| Cash Conversion | 59.48% | ||
| Profit Quality | 83.76% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.12 |
F-Score4
WACC5.99%
ROIC/WACC0.94
Cap/Depr(3y)80.65%
Cap/Depr(5y)79.09%
Cap/Sales(3y)2.74%
Cap/Sales(5y)2.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.23%
EPS 3Y-1.33%
EPS 5Y4.44%
EPS Q2Q%-16.07%
EPS Next Y15.13%
EPS Next 2Y13.67%
EPS Next 3Y11.33%
EPS Next 5Y7.44%
Revenue 1Y (TTM)0.31%
Revenue growth 3Y3.76%
Revenue growth 5Y2.92%
Sales Q2Q%-1.02%
Revenue Next Year0.88%
Revenue Next 2Y1.63%
Revenue Next 3Y1.99%
Revenue Next 5Y2.15%
EBIT growth 1Y-23.47%
EBIT growth 3Y-6.39%
EBIT growth 5Y1.75%
EBIT Next Year40.9%
EBIT Next 3Y17.11%
EBIT Next 5Y10.67%
FCF growth 1Y4800%
FCF growth 3Y4.63%
FCF growth 5YN/A
OCF growth 1Y138.69%
OCF growth 3Y3.41%
OCF growth 5Y96.16%