LSE:CRDA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


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

-1.5%

CRDA

-0.4%

GB Chemicals

-0.07%

GB Market


1 Year Return

-0.7%

CRDA

-7.8%

GB Chemicals

6.0%

GB Market

Return vs Industry: CRDA exceeded the UK Chemicals industry which returned -7.8% over the past year.

Return vs Market: CRDA underperformed the UK Market which returned 6% over the past year.


Shareholder returns

CRDAIndustryMarket
7 Day-1.5%-0.4%-0.07%
30 Day1.5%5.0%2.2%
90 Day1.5%4.3%3.8%
1 Year3.4%-0.7%-4.0%-7.8%11.5%6.0%
3 Year58.8%46.8%12.3%2.8%22.0%6.6%
5 Year115.1%83.5%22.8%3.6%33.5%3.3%

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?

26.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRDA (£48) is trading above our estimate of fair value (£36.09)

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 (26.1x) compared to the Chemicals industry average (23.6x).

PE vs Market: CRDA is poor value based on its PE Ratio (26.1x) compared to the UK market (17x).


Price to Earnings Growth Ratio

PEG Ratio: CRDA is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: CRDA is overvalued based on its PB Ratio (7.1x) compared to the GB Chemicals industry average (2.2x).


Next Steps

Future Growth

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

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRDA's forecast earnings growth (6.9% per year) is above the savings rate (1.2%).

Earnings vs Market: CRDA's earnings (6.9% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: CRDA's revenue (3.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: CRDA's revenue (3.8% 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 (25.1%)


Next Steps

Past Performance

How has Croda International performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRDA has high quality earnings.

Growing Profit Margin: CRDA's current net profit margins (16.8%) are lower than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: CRDA's earnings have grown by 8.8% 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 (-3.6%) over the past year, making it difficult to compare to the Chemicals industry average (-3.6%).


Return on Equity

High ROE: CRDA's Return on Equity (27.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Croda International's financial position?


Financial Position Analysis

Short Term Liabilities: CRDA's short term assets (£615.4M) exceeds its short term liabilities (£352.9M)

Long Term Liabilities: CRDA's short term assets (£615.4M) do not cover its long term liabilities (732.5M)


Debt to Equity History and Analysis

Debt Level: CRDA's debt to equity ratio (72.4%) is considered high.

Reducing Debt: CRDA's debt to equity ratio has increased from 57.1% to 72.4% over the past 5 years.

Debt Coverage: CRDA's debt is well covered by operating cash flow (44.2%).

Interest Coverage: CRDA's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: CRDA's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: CRDA's dividend (1.84%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: CRDA's dividend (1.84%) is low compared to the top 25% of dividend payers in the UK market (5.38%).


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 reasonably low payout ratio (48.8%), CRDA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRDA's dividends in 3 years are forecast to be covered by earnings (73.1% payout ratio).


Next Steps

Management

What is the CEO of Croda International's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Steve Foots (50yo)

7.8yrs

Tenure

UK£3,195,815

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 ($USD4.13M) is about average for companies of similar size in the UK market ($USD3.40M).

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


Management Age and Tenure

5.6yrs

Average Tenure

50yo

Average Age

Experienced Management: CRDA's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

56.5yo

Average Age

Experienced Board: CRDA's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£145,24401 May 19
Thomas Brophy
EntityIndividual
Role
Chief Legal Officer
Group General Counsel & Company Secretary
Shares2,823
Max PriceUK£51.51
SellUK£279,67608 Apr 19
Anthony Fitzpatrick
EntityIndividual
Role
Head of Corporate Development
President of Corporate Development
Shares5,355.38
Max PriceUK£52.22
SellUK£90,07304 Apr 19
Stuart Arnott
EntityIndividual
Role
Senior Key Executive
President of Global Operations
Shares1,733.71
Max PriceUK£52.10
SellUK£97,61928 Mar 19
Maarten Heybroek
EntityIndividual
Role
Unit President
President of Performance Technologies & Industrial Chemicals
Shares1,943.6
Max PriceUK£50.23
SellUK£44,19126 Mar 19
Anthony Fitzpatrick
EntityIndividual
Role
Head of Corporate Development
President of Corporate Development
Shares878.57
Max PriceUK£50.30
SellUK£121,96912 Mar 19
Maarten Heybroek
EntityIndividual
Role
Unit President
President of Performance Technologies & Industrial Chemicals
Shares2,458.05
Max PriceUK£49.62
SellUK£5,48406 Mar 19
Graham Myers
EntityIndividual
Shares109.33
Max PriceUK£50.16
BuyUK£39,26606 Mar 19
Stuart Arnott
EntityIndividual
Role
Senior Key Executive
President of Global Operations
Shares780.95
Max PriceUK£50.29

Ownership Breakdown

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


Management Team

  • Steve Foots (50yo)

    Group Chief Executive & Director

    • Tenure: 7.8yrs
    • Compensation: UK£3.20m
  • Jez Maiden (57yo)

    Group Finance Director & Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.79m
  • Rupark Sarswat

    Managing Director of Regional Operations - Shiga

    • Tenure: 0yrs
  • Anthony Fitzpatrick

    President of Corporate Development

    • Tenure: 5.6yrs
  • Sandra Breene

    President of Personal Care

    • Tenure: 3.8yrs
  • Maarten Heybroek

    President of Performance Technologies & Industrial Chemicals

    • Tenure: 0yrs
  • Nick Challoner

    President of Life Sciences

    • Tenure: 0yrs
  • Stuart Arnott

    President of Global Operations

    • Tenure: 0yrs
  • Tom Brophy (45yo)

    Group General Counsel & Company Secretary

    • Tenure: 6.9yrs
  • Conleth Campbell

    Vice President of Investor Relations & Corporate Finance

    • Tenure: 0yrs

Board Members

  • Alan Ferguson (61yo)

    Senior Independent Director

    • Tenure: 1.6yrs
    • Compensation: UK£80.26k
  • Anita Frew (62yo)

    Chairman of the Board

    • Tenure: 4.2yrs
    • Compensation: UK£253.78k
  • Keith Layden (59yo)

    Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: UK£1.09m
  • Steve Foots (50yo)

    Group Chief Executive & Director

    • Tenure: 7.8yrs
    • Compensation: UK£3.20m
  • Jez Maiden (57yo)

    Group Finance Director & Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.79m
  • Roberto Cirillo (48yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£41.02k
  • Helena Ganczakowski (56yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£68.79k
  • Jacqui Ferguson (49yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: UK£20.51k

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£6.134b
  • Shares outstanding: 127.80m
  • Website: https://www.croda.com

Number of Employees


Location

  • Croda International Plc
  • Cowick Hall
  • Snaith
  • Goole
  • Yorkshire
  • 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
49GPLSE (London Stock Exchange)6.6% CUM PRF GBP1GBGBPAug 1996
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 Analysis2019/11/19 20:33
End of Day Share Price2019/11/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.