LSE:CRDA

Stock Analysis Report

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Executive Summary

Croda International Plc creates, makes, and sells specialty chemicals in Europe, the Middle East, Africa, North America, Asia, and Latin America. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Croda International's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.2%

CRDA

-2.9%

GB Chemicals

-1.9%

GB Market


1 Year Return

31.4%

CRDA

-2.0%

GB Chemicals

-16.2%

GB Market

Return vs Industry: CRDA exceeded the UK Chemicals industry which returned 0.6% over the past year.

Return vs Market: CRDA exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

CRDAIndustryMarket
7 Day-3.2%-2.9%-1.9%
30 Day1.8%3.3%0.7%
90 Day9.7%6.6%-4.8%
1 Year33.8%31.4%-0.4%-2.0%-13.0%-16.2%
3 Year68.1%55.8%-6.8%-14.5%-9.4%-20.6%
5 Year136.6%103.1%14.4%-2.2%13.5%-12.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Croda International undervalued compared to its fair value and its price relative to the market?

39.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRDA (£62.54) is trading above our estimate of fair value (£37.62)

Significantly Below Fair Value: CRDA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CRDA is poor value based on its PE Ratio (39.3x) compared to the GB Chemicals industry average (34.9x).

PE vs Market: CRDA is poor value based on its PE Ratio (39.3x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CRDA is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: CRDA is overvalued based on its PB Ratio (8.2x) compared to the GB Chemicals industry average (2.1x).


Next Steps

Future Growth

How is Croda International forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRDA's forecast earnings growth (9.6% per year) is above the savings rate (1.2%).

Earnings vs Market: CRDA's earnings (9.6% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: CRDA's revenue (5.1% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: CRDA's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRDA's Return on Equity is forecast to be high in 3 years time (24.1%)


Next Steps

Past Performance

How has Croda International performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRDA has high quality earnings.

Growing Profit Margin: CRDA's current net profit margins (15.5%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: CRDA's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: CRDA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRDA had negative earnings growth (-11.8%) over the past year, making it difficult to compare to the Chemicals industry average (-18.3%).


Return on Equity

High ROE: CRDA's Return on Equity (21.1%) is considered high.


Next Steps

Financial Health

How is Croda International's financial position?


Financial Position Analysis

Short Term Liabilities: CRDA's short term assets (£583.9M) exceed its short term liabilities (£255.6M).

Long Term Liabilities: CRDA's short term assets (£583.9M) do not cover its long term liabilities (£775.7M).


Debt to Equity History and Analysis

Debt Level: CRDA's debt to equity ratio (59%) is considered high.

Reducing Debt: CRDA's debt to equity ratio has increased from 43.6% to 59% over the past 5 years.

Debt Coverage: CRDA's debt is well covered by operating cash flow (51.5%).

Interest Coverage: CRDA's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Croda International current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CRDA's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: CRDA's dividend (1.44%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


Stability and Growth of Payments

Stable Dividend: CRDA's dividends per share have been stable in the past 10 years.

Growing Dividend: CRDA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.5%), CRDA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRDA's dividends in 3 years are forecast to be well covered by earnings (44.4% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Steve Foots (51 yo)

8.75yrs

Tenure

UK£1,800,961

Compensation

Mr. Stephen Edward Foots, also known as Steve, serves as the Chief Executive Officer of Croda International plc since January 1, 2012 and its Executive Director since July 2010. Mr. Foots serves as the Pre ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.37M) is below average for companies of similar size in the UK market ($USD4.87M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Foots
Group Chief Executive & Executive Director8.75yrsUK£1.80m0.13%
£ 10.5m
Jeremy Maiden
Group Finance Director & Executive Director5.75yrsUK£1.08m0.022%
£ 1.8m
Conleth Campbell
Vice President of Investor Relations & Corporate Financeno datano datano data
Thomas Brophy
Group General Counsel7.83yrsno data0.011%
£ 867.6k
Anthony Fitzpatrick
President of Corporate Development6.5yrsno data0.014%
£ 1.1m
Tracy Sheedy
Group HR Director4.33yrsno datano data
Sandra Breene
President of Regional Delivery4.75yrsno data0.014%
£ 1.1m
Maarten Heybroek
President of Consumer Careno datano data0.013%
£ 1.1m
Nicholas Challoner
President of Life Sciencesno datano data0.014%
£ 1.1m
Stuart Arnott
President of Sustainabilityno datano data0.031%
£ 2.5m
Rupark Sarswat
Managing Director of Regional Operations - Shigano datano datano data
Ritesh Tanna
Group Financial Controllerno datano datano data

6.1yrs

Average Tenure

51yo

Average Age

Experienced Management: CRDA's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Foots
Group Chief Executive & Executive Director8.75yrsUK£1.80m0.13%
£ 10.5m
Jeremy Maiden
Group Finance Director & Executive Director5.75yrsUK£1.08m0.022%
£ 1.8m
Anita Frew
Chairman of the Board5.08yrsUK£300.55k0.0074%
£ 589.3k
Keith Layden
Non-Executive Director8.67yrsUK£1.09m0.063%
£ 5.0m
John Ramsay
Non-Executive Director0.75yrno data0.0016%
£ 124.7k
Roberto Cirillo
Independent Non-Executive Director2.5yrsUK£67.85kno data
Helena Ganczakowski
Senior Independent Director0.50yrUK£81.81k0.00028%
£ 22.4k
Jacqueline Ferguson
Independent Non-Executive Director2.08yrsUK£64.46k0.000060%
£ 4.8k

3.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CRDA's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CRDA insiders have sold more shares than they have bought 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

Croda International Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Croda International Plc
  • Ticker: CRDA
  • Exchange: LSE
  • Founded: 1925
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: UK£7.996b
  • Shares outstanding: 127.86m
  • Website: https://www.croda.com

Number of Employees


Location

  • Croda International Plc
  • Cowick Hall
  • Snaith
  • Goole
  • North Humberside
  • DN14 9AA
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRDALSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
COIH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
6CMBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CRDALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
50GPLSE (London Stock Exchange)5.9% CUM PRF GBP1GBGBPAug 1996
COIH.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2011

Biography

Croda International Plc creates, makes, and sells specialty chemicals in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company operates in four segments: Personal Care, Life ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:12
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.