Akzo Nobel N.V.
Akzo Nobel N.V. Fundamental Analysis
Akzo Nobel N.V. (AKZOY) shows moderate financial fundamentals with a PE ratio of 13.92, profit margin of 6.21%, and ROE of 14.47%. The company generates $30.4B in annual revenue with weak year-over-year growth of 0.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AKZOY's fundamental strength across five key dimensions:
Efficiency Score
WeakAKZOY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAKZOY trades at attractive valuation levels.
Growth Score
ModerateAKZOY shows steady but slowing expansion.
Financial Health Score
ModerateAKZOY shows balanced financial health with some risks.
Profitability Score
WeakAKZOY struggles to sustain strong margins.
Key Financial Metrics
Is AKZOY Expensive or Cheap?
P/E Ratio
AKZOY trades at 13.92 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AKZOY's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Akzo Nobel N.V. at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.93 times EBITDA. This signals the market has high growth expectations.
How Well Does AKZOY Make Money?
Net Profit Margin
For every $100 in sales, Akzo Nobel N.V. keeps $6.21 as profit after all expenses.
Operating Margin
Core operations generate 8.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.47 in profit for every $100 of shareholder equity.
ROA
Akzo Nobel N.V. generates $4.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Akzo Nobel N.V. generates limited operating cash flow of $2.68B, signaling weaker underlying cash strength.
Free Cash Flow
Akzo Nobel N.V. produces free cash flow of $1.75B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.14 in free cash annually.
FCF Yield
AKZOY converts 2.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How AKZOY Stacks Against Its Sector Peers
| Metric | AKZOY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.92 | 24.91 | Better (Cheaper) |
| ROE | 14.47% | 840.00% | Weak |
| Net Margin | 6.21% | -105381.00% (disorted) | Weak |
| Debt/Equity | 1.04 | 0.55 | Weak (High Leverage) |
| Current Ratio | 1.44 | 4.94 | Neutral |
| ROA | 4.51% | -4176.00% (disorted) | Weak |
AKZOY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Akzo Nobel N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.11%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
25.50%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
2445.22%
Industry Style: Cyclical, Commodity, Value
High Growth