Akzo Nobel NV

Akzo Nobel's capital structure is characterized by a debt-to-equity ratio of 1.21, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.1 and negative free cash flow of -64 million EUR, suggesting potential short-term liquidity constraints. Despite holding 1.17 billion EUR in cash and equivalents, the company's long-term debt of 5.42 billion EUR offsets this, resulting in a net cash position that is negative after subtracting total debt.

Profitability metrics for Akzo Nobel show a return on equity (ROE) of 3.96% and a return on assets (ROA) of 1.22%, both of which are below the industry median for Commodity Chemicals. The company's operating margin is 9.7%, which is also below the median for its industry, indicating that it is underperforming in terms of converting revenue into operating profit.

Geographically, Akzo Nobel's revenue is concentrated in Europe, with a significant portion derived from its Paints and Coatings segment. The company's exposure to emerging markets is limited, and its revenue concentration in a few key regions could pose a risk in the event of regional economic downturns or geopolitical instability.

Akzo Nobel's growth trajectory is modest, with revenue of 2.78 billion EUR in the latest reporting period. The company's capital expenditures of -115 million EUR suggest a reduction in investment in new projects or facilities, which could impact long-term growth potential. Analysts have provided a mean price target of 61.75 EUR, with a median of 63.00 EUR, indicating a generally positive outlook despite the company's current financial challenges.

Risk factors for Akzo Nobel include its high debt load and negative free cash flow, which could limit its ability to invest in growth opportunities or withstand economic downturns. The company's dilution risk is assessed as low, with no significant dilution expected in the near term. However, the company's reliance on debt financing and its exposure to volatile commodity prices could increase financial risk in the future.

Recent events for Akzo Nobel include the release of its latest financial results, which show a decline in operating cash flow and free cash flow. The company has also announced plans to reduce capital expenditures in the coming year, which could impact its ability to maintain or grow its market share. Analysts have provided a range of price targets, with a mean of 61.75 EUR and a median of 63.00 EUR, indicating a generally positive outlook despite the company's current financial challenges.

Operating income surged 22.1% year-over-year to EUR 1.14 billion, demonstrating strong operational leverage despite revenue headwinds.

Analysts project 6.9% upside to a mean price target of EUR 61.75, reflecting positive market sentiment.

Return on equity of 3.96% outperforms the cohort median of 3.61%, showing efficient capital utilization.

Free cash flow improved 12.5% year-over-year to EUR 359 million, supporting potential dividend or buyback capacity.

Debt-to-equity ratio of 1.21 places the company in the bottom quartile of its cohort, signaling high leverage risk.

Revenue declined 5.2% year-over-year to EUR 10.16 billion, indicating weakening top-line growth momentum.

The company faces high credit risk, which could increase borrowing costs and limit financial flexibility.

Cash conversion of -0.13 is in the bottom quartile of the cohort, suggesting poor cash generation relative to earnings.

Net income CAGR of -6.4% over four years highlights a long-term trend of declining profitability.

Revenue €2.39B, −8,7% YoY; Operating income −7,8% YoY.

• ▍Revenue €2.39B, −8,7% YoY
• ▍Operating income −7,8% YoY
• ▍Net income −13,1% YoY
• ▍Free cash flow −3,6% YoY
• ▍Net margin 3.9%

Revenue €2.37B, −9,4% YoY; Operating income +435,9% YoY.

• ▍Revenue €2.37B, −9,4% YoY
• ▍Operating income +435,9% YoY
• ▍Net income +2 747,6% YoY
• ▍Free cash flow +731,3% YoY
• ▍Net margin 25.2%

Revenue €2.55B, −4,5% YoY; Operating income −111,2% YoY.

• ▍Revenue €2.55B, −4,5% YoY
• ▍Operating income −111,2% YoY
• ▍Net income −219,0% YoY
• ▍Free cash flow −202,7% YoY
• ▍Net margin -7.6%

Revenue €2.63B, −5,7% YoY; Operating income −20,7% YoY.

• ▍Revenue €2.63B, −5,7% YoY
• ▍Operating income −20,7% YoY
• ▍Net income −29,9% YoY
• ▍Free cash flow −78,1% YoY
• ▍Net margin 4.7%

Revenue €2.61B; Operating income €192.0M.

• ▍Revenue €2.61B
• ▍Operating income €192.0M
• ▍Net margin 4.1%

Revenue €2.62B; Operating income €142.0M.

• ▍Revenue €2.62B
• ▍Operating income €142.0M
• ▍Net margin 0.8%

Revenue €2.67B; Operating income €259.0M.

• ▍Revenue €2.67B
• ▍Operating income €259.0M
• ▍Net margin 6.1%

Revenue €2.78B; Operating income €270.0M.

• ▍Revenue €2.78B
• ▍Operating income €270.0M
• ▍Net margin 6.4%

Revenue €10.16B, −5,2% YoY; Operating income +22,1% YoY.

• ▍Revenue €10.16B, −5,2% YoY
• ▍Operating income +22,1% YoY
• ▍Net income +17,2% YoY
• ▍Free cash flow +12,5% YoY
• ▍Net margin 6.3%

Revenue €10.71B, +0,4% YoY; Operating income −5,2% YoY.

• ▍Revenue €10.71B, +0,4% YoY
• ▍Operating income −5,2% YoY
• ▍Net income +22,6% YoY
• ▍Free cash flow +67,0% YoY
• ▍Net margin 5.1%

Revenue €10.67B, −1,6% YoY; Operating income +38,8% YoY.

• ▍Revenue €10.67B, −1,6% YoY
• ▍Operating income +38,8% YoY
• ▍Net income +25,6% YoY
• ▍Free cash flow +124,7% YoY
• ▍Net margin 4.1%

Revenue €10.85B, +13,1% YoY; Operating income −36,7% YoY.

• ▍Revenue €10.85B, +13,1% YoY
• ▍Operating income −36,7% YoY
• ▍Net income −57,5% YoY
• ▍Free cash flow −84,0% YoY
• ▍Net margin 3.2%