ENXTAM:AKZA

Stock Analysis Report

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Executive Summary

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


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: AKZA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

AKZA

-2.9%

NL Chemicals

-2.9%

NL Market


1 Year Return

6.5%

AKZA

14.5%

NL Chemicals

-8.8%

NL Market

Return vs Industry: AKZA underperformed the Dutch Chemicals industry which returned 15.8% over the past year.

Return vs Market: AKZA exceeded the Dutch Market which returned -8.3% over the past year.


Shareholder returns

AKZAIndustryMarket
7 Day-2.2%-2.9%-2.9%
30 Day7.6%6.4%3.7%
90 Day6.6%8.9%-4.1%
1 Year9.4%6.5%16.9%14.5%-6.5%-8.8%
3 Year36.2%1.1%53.1%30.3%-0.8%-10.8%
5 Year74.3%23.4%94.9%59.9%27.0%3.9%

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

Valuation

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

14.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKZA (€88.6) is trading below our estimate of fair value (€103.67)

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


Price To Earnings Ratio

PE vs Industry: AKZA is good value based on its PE Ratio (36.3x) compared to the NL Chemicals industry average (36.6x).

PE vs Market: AKZA is poor value based on its PE Ratio (36.3x) compared to the Dutch market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: AKZA is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: AKZA is overvalued based on its PB Ratio (2.9x) compared to the NL Chemicals industry average (2.5x).


Next Steps

Future Growth

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

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKZA's forecast earnings growth (14.4% per year) is above the savings rate (0.4%).

Earnings vs Market: AKZA's earnings (14.4% per year) are forecast to grow slower than the Dutch market (26.4% per year).

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

Revenue vs Market: AKZA's revenue (4.9% per year) is forecast to grow slower than the Dutch market (9.1% per year).

High Growth Revenue: AKZA's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKZA's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Akzo Nobel performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKZA has high quality earnings.

Growing Profit Margin: AKZA's current net profit margins (5.5%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: AKZA's earnings have declined by 17.2% per year over the past 5 years.

Accelerating Growth: AKZA's earnings growth over the past year (3.9%) exceeds its 5-year average (-17.2% per year).

Earnings vs Industry: AKZA earnings growth over the past year (3.9%) exceeded the Chemicals industry -26.1%.


Return on Equity

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


Next Steps

Financial Health

How is Akzo Nobel's financial position?


Financial Position Analysis

Short Term Liabilities: AKZA's short term assets (€4.7B) exceed its short term liabilities (€2.9B).

Long Term Liabilities: AKZA's short term assets (€4.7B) exceed its long term liabilities (€4.3B).


Debt to Equity History and Analysis

Debt Level: AKZA's debt to equity ratio (43.1%) is considered high.

Reducing Debt: AKZA's debt to equity ratio has reduced from 48.4% to 43.1% over the past 5 years.

Debt Coverage: AKZA's debt is well covered by operating cash flow (34.6%).

Interest Coverage: AKZA's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AKZA's dividend (2.14%) is higher than the bottom 25% of dividend payers in the Dutch market (2.13%).

High Dividend: AKZA's dividend (2.14%) is low compared to the top 25% of dividend payers in the Dutch market (5.95%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.9%), AKZA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AKZA's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Thierry F. Vanlancker (56 yo)

3.25yrs

Tenure

€3,561,212

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 ($USD4.23M) is about average for companies of similar size in the Dutch market ($USD5.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thierry F. Vanlancker
Chairman of the Board of Management & CEO3.25yrs€3.56m0.023%
€ 3.9m
Maarten de Vries
CFO & Member of Management Board2.75yrs€1.84m0.0029%
€ 503.4k
Lloyd Midwinter
Director of Communications & Investor Relationno datano datano data
Isabelle Deschamps
General Counsel2.17yrsno datano data
Leslie McGibbon
Global Head of Communications & Public Affairs and Corporate Director5.33yrsno datano data
Joëlle Boxus
Chief Human Resources Officer0.58yrno datano data
Olle Werner
Senior Vice President of Human Resourcesno datano datano data
Jaap Kuiper
Managing Director of Decorative Paints - Latin America Operationsno datano datano data
Amit Jain
Managing Director of Decorative Coatings - North & West Europeno datano datano data
Jeremy Rowe
Managing Director of Decorative Paints - Middle Eastno datano datano data
Peter Tomlinson
Managing Director of Middle East Operations9.75yrsno datano data
Knut Schwalenberg
Managing Director of Industrial Chemicals9.75yrsno datano data

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: AKZA's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sue Clark
Independent Member of the Supervisory Board2.92yrs€92.50kno data
Pamela Kirby
Independent Member of the Supervisory Board4.5yrs€92.50kno data
Byron Grote
Independent Deputy Chairman of the Supervisory Board4yrs€130.50k0.0034%
€ 590.8k
Patrick Thomas
Independent Member of the Supervisory Board2.92yrs€97.50kno data
Nils Andersen
Independent Chairman of the Supervisory Board2.5yrs€162.50k0.0023%
€ 399.0k
Dick Sluimers
Independent Member of the Supervisory Board5.75yrs€107.50kno data
Michiel Jaski
Independent Member of the Supervisory Board2.92yrs€87.50k0.00023%
€ 39.4k
Jolanda Poots-Bijl
Independent Member of the Supervisory Board1.5yrs€59.17kno data

2.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AKZA's board of directors are not considered experienced ( 2.9 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: Insufficient data to determine if 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: AKZA
  • Exchange: ENXTAM
  • Founded: 1646
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €17.124b
  • Shares outstanding: 193.27m
  • Website: https://www.akzonobel.com

Number of Employees


Location

  • Akzo Nobel N.V.
  • Christian Neefestraat 2
  • PO Box 75730
  • Amsterdam
  • Noord-Holland
  • 1077 WW
  • 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. It offers decorative paints, including paints, lacquers, and varnishes; a range of mixing machines and color concepts for the building a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:52
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.