Akzo Nobel NV AKZA

Morningstar Rating
€63.48 −0.92 (1.43%)
View Full Chart

Company Report

Narrow-Moat AkzoNobel Faces Bumpy Road in Reaching Profitability Targets

AkzoNobel is the third-largest company in the paints and coatings industry, behind Sherwin-Williams and PPG Industries. The company's operations are divided into two segments: decorative paints and performance coatings. Decorative paints are applied to external and internal buildings for cosmetic appeal and are essentially consumer products where brands are important. By contrast, performance coatings are primarily functional products used in a variety of industrial end markets, including automotive, aerospace, oil and gas, marine, and packaging.

Price vs Fair Value

AKZA is trading at a 135% premium.
Price
€64.40
Fair Value
€77.00
Uncertainty
Medium
1-Star Price
€992.42
5-Star Price
€52.50
Economic Moat
Mzwjjs
Capital Allocation
Sbpklyzg

Bulls Say, Bears Say

Bulls

The Dulux brand enjoys pricing power in its key markets, with an estimated 15%-40% price premium to private label in key European markets.

Bears

The low-hanging fruit for cost savings has likely been harvested leading up to 2020. In the future, achieving further efficiencies will be more challenging.

Trading Information

Previous Close Price
€64.40
Day Range
€63.2463.90
52-Week Range
€52.8275.30
Bid/Ask
€63.48 / €63.50
Market Cap
€10.85 Bil
Volume/Avg
52,624 / 439,798

Key Statistics

Price/Earnings (Normalized)
18.31
Price/Sales
1.03
Dividend Yield (Trailing)
3.07%
Dividend Yield (Forward)
3.07%
Total Yield
3.07%

Company Profile

Netherlands-based AkzoNobel is the world's third-largest paint and coatings producer. Europe is the largest market, with around 46% of sales generated in the Europe, Middle East, and Africa, or EMEA, region. Cumulatively, the Asia-Pacific and Latin American divisions have also grown quickly to more than 40% of sales. Construction-related end markets are the most important, but meaningful revenue is also generated from the industrial, consumer goods, and transportation markets.
Sector
Basic Materials
Industry
Specialty Chemicals
Stock Style Box
Mid Core
Total Number of Employees
35,700

Competitors

Valuation

Metric
AKZA
SHW
PPG
Price/Earnings (Normalized)
18.3135.0616.90
Price/Book Value
2.4625.734.04
Price/Sales
1.034.261.76
Price/Cash Flow
11.8325.5016.18
Price/Earnings
AKZA
SHW
PPG

Financial Strength

Metric
AKZA
SHW
PPG
Quick Ratio
0.770.440.96
Current Ratio
1.100.811.49
Interest Coverage
4.598.988.61
Quick Ratio
AKZA
SHW
PPG

Profitability

Metric
AKZA
SHW
PPG
Return on Assets (Normalized)
4.20%11.41%8.66%
Return on Equity (Normalized)
14.01%72.16%24.25%
Return on Invested Capital (Normalized)
6.38%18.57%12.80%
Return on Assets
AKZA
SHW
PPG

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