WBAG:AKZO

Stock Analysis Report

Executive Summary

Akzo Nobel N.V. operates as a paints and coatings company worldwide.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Akzo Nobel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKZO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

AKZO

-0.6%

AT Chemicals

-1.3%

AT Market


1 Year Return

5.0%

AKZO

9.5%

AT Chemicals

3.5%

AT Market

Return vs Industry: AKZO underperformed the Austrian Chemicals industry which returned 9.5% over the past year.

Return vs Market: AKZO exceeded the Austrian Market which returned 3.5% over the past year.


Shareholder returns

AKZOIndustryMarket
7 Day-3.7%-0.6%-1.3%
30 Day-3.1%2.9%0.4%
90 Day-3.3%2.9%-1.2%
1 Year7.5%5.0%12.9%9.5%7.2%3.5%
3 Yearn/a18.6%7.9%27.3%15.8%
5 Yearn/a30.4%10.9%51.3%30.3%

Price Volatility Vs. Market

How volatile is Akzo Nobel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Akzo Nobel undervalued compared to its fair value and its price relative to the market?

16.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKZO (€84.15) is trading below our estimate of fair value (€100.45)

Significantly Below Fair Value: AKZO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AKZO is poor value based on its PE Ratio (34.8x) compared to the Chemicals industry average (16.3x).

PE vs Market: AKZO is poor value based on its PE Ratio (34.8x) compared to the Austrian market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: AKZO is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AKZO is overvalued based on its PB Ratio (2.6x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Akzo Nobel forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKZO's forecast earnings growth (15.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: AKZO's earnings (15.1% per year) are forecast to grow faster than the Austrian market (2.3% per year).

High Growth Earnings: AKZO's earnings are forecast to grow, but not significantly.

Revenue vs Market: AKZO's revenue (2.8% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: AKZO's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKZO's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Akzo Nobel performed over the past 5 years?

-16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKZO has high quality earnings.

Growing Profit Margin: AKZO's current net profit margins (5.6%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: AKZO's earnings have declined by -16% per year over the past 5 years.

Accelerating Growth: AKZO's earnings growth over the past year (29.3%) exceeds its 5-year average (-16% per year).

Earnings vs Industry: AKZO earnings growth over the past year (29.3%) exceeded the Chemicals industry 2.5%.


Return on Equity

High ROE: AKZO's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Akzo Nobel's financial position?


Financial Position Analysis

Short Term Liabilities: AKZO's short term assets (€4.7B) exceed its short term liabilities (€3.0B).

Long Term Liabilities: AKZO's short term assets (€4.7B) exceed its long term liabilities (€3.4B).


Debt to Equity History and Analysis

Debt Level: AKZO's debt to equity ratio (33.6%) is considered satisfactory.

Reducing Debt: AKZO's debt to equity ratio has reduced from 52.4% to 33.6% over the past 5 years.

Debt Coverage: AKZO's debt is not well covered by operating cash flow (1%).

Interest Coverage: AKZO's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet

Inventory Level: AKZO has a high level of physical assets or inventory.

Debt Coverage by Assets: AKZO's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Akzo Nobel's current dividend yield, its reliability and sustainability?

2.25%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Akzo Nobel before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.3%marketbottom25%1.6%markettop25%4.6%industryaverage3.0%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: AKZO's dividend (2.25%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: AKZO's dividend (2.25%) is low compared to the top 25% of dividend payers in the Austrian market (4.58%).


Stability and Growth of Payments

Stable Dividend: AKZO's dividend payments have been volatile in the past 10 years.

Growing Dividend: AKZO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.3%), AKZO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AKZO's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Thierry F. Vanlancker (55yo)

2.6yrs

Tenure

€3,256,476

Compensation

Mr. Thierry F. J. Vanlancker has been Chief Executive Officer and Chairman of the Board of Management at Akzo Nobel N.V. since July 19, 2017 and its Member of Board of Management since September 8, 2017. M ...


CEO Compensation Analysis

Compensation vs Market: Thierry F.'s total compensation ($USD3.54M) is about average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: Thierry F.'s compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thierry F. Vanlancker
Chairman of the Board of Management & CEO2.6yrs€3.26m0.019% 3.2m
Maarten de Vries
CFO & Member of Management Board2.1yrs€1.76m0.0021% 351.8k
Ruud Joosten
Chief Operating Officer0yrsno datano data
Lloyd Midwinter
Director of Communications & Investor Relation0yrsno datano data
Isabelle Deschamps
General Counsel1.5yrsno datano data
Leslie McGibbon
Global Head of Communications & Public Affairs and Corporate Director4.7yrsno datano data
Marten Booisma
Chief Human Resource Officer6.3yrsno datano data
Olle Werner
Senior Vice President of Human Resources0yrsno datano data
Jaap Kuiper
Managing Director of Decorative Paints - Latin America Operations0yrsno datano data
Peter Tomlinson
Managing Director of Middle East Operations9.1yrsno datano data

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: AKZO's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernardus Verwaayen
Member of the Supervisory Board7.8yrs€95.00kno data
Sue Clark
Member of Supervisory Board2.3yrs€88.00kno data
Pamela Kirby
Member of the Supervisory Board3.8yrs€92.50kno data
Byron Grote
Deputy Chairman of the Supervisory Board3.3yrs€135.50k0.0022% 361.9k
Patrick Thomas
Member of Supervisory Board2.3yrs€90.66kno data
Nils Andersen
Chairman of the Supervisory Board1.8yrs€111.37k0.0022% 378.7k
Dick Sluimers
Member of the Supervisory Board5.1yrs€107.50kno data
Michiel Jaski
Member of Supervisory Board2.3yrs€78.16k0.00020% 33.7k
Jolanda Poots-Bijl
Member of the Supervisory Board0.8yrsno datano data

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: AKZO's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AKZO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Akzo Nobel N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Akzo Nobel N.V.
  • Ticker: AKZO
  • Exchange: WBAG
  • Founded: 1646
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €16.830b
  • Shares outstanding: 199.60m
  • Website: https://www.akzonobel.com

Number of Employees


Location

  • Akzo Nobel N.V.
  • Christian Neefestraat 2
  • PO Box 75730
  • Amsterdam
  • Noord-Holland
  • 1070 AS
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKZO.YOTCPK (Pink Sheets LLC)SPONSRD ADS NEWUSUSDMay 1989
AKUPDB (Deutsche Boerse AG)SPONSRD ADS NEWDEEURMay 1989
AKZO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1989
AKZAENXTAM (Euronext Amsterdam)YesCommon SharesNLEURDec 1989
AKZOWBAG (Wiener Boerse AG)YesCommon SharesATEURDec 1989
AKU1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1989
AKZSWX (SIX Swiss Exchange)YesCommon SharesCHCHFDec 1989
0A00LSE (London Stock Exchange)YesCommon SharesGBEURDec 1989
AKZAABATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURDec 1989
AKU1ETLX (Eurotlx)YesCommon SharesITEURDec 1989

Biography

Akzo Nobel N.V. operates as a paints and coatings company worldwide. The company offers decorative paints, including paints, lacquers, and varnishes; a range of mixing machines and color concepts for the building and renovation industry; and specialty coatings for metal, wood, and other building materials primarily under the Dulux, Coral, Levis, and Flexa brands. It also provides performance coatings to protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:20
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.