Latest news with #AkzoNobelN.V
Yahoo
25-05-2025
- Business
- Yahoo
Is Akzo Nobel N.V. (AMS:AKZA) Potentially Undervalued?
Akzo Nobel N.V. (AMS:AKZA) led the ENXTAM gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Let's examine Akzo Nobel's valuation and outlook in more detail to determine if there's still a bargain opportunity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Akzo Nobel's ratio of 21.84x is trading slightly above its industry peers' ratio of 21.84x, which means if you buy Akzo Nobel today, you'd be paying a relatively reasonable price for it. And if you believe that Akzo Nobel should be trading at this level in the long run, then there should only be a fairly immaterial downside vs other industry peers. Is there another opportunity to buy low in the future? Since Akzo Nobel's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for Akzo Nobel Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Akzo Nobel's earnings over the next few years are expected to increase by 87%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? AKZA's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at AKZA? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Are you a potential investor? If you've been keeping tabs on AKZA, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for AKZA, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Akzo Nobel (of which 1 is a bit concerning!) you should know about. If you are no longer interested in Akzo Nobel, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
25-04-2025
- Business
- Yahoo
Read This Before Considering Akzo Nobel N.V. (AMS:AKZA) For Its Upcoming €1.54 Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Akzo Nobel N.V. (AMS:AKZA) is about to trade ex-dividend in the next 3 days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. In other words, investors can purchase Akzo Nobel's shares before the 29th of April in order to be eligible for the dividend, which will be paid on the 7th of May. The company's next dividend payment will be €1.54 per share, and in the last 12 months, the company paid a total of €1.98 per share. Based on the last year's worth of payments, Akzo Nobel stock has a trailing yield of around 3.5% on the current share price of €56.20. If you buy this business for its dividend, you should have an idea of whether Akzo Nobel's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Akzo Nobel paid out more than half (62%) of its earnings last year, which is a regular payout ratio for most companies. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It paid out 86% of its free cash flow as dividends, which is within usual limits but will limit the company's ability to lift the dividend if there's no growth. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. See our latest analysis for Akzo Nobel Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. With that in mind, we're encouraged by the steady growth at Akzo Nobel, with earnings per share up 2.4% on average over the last five years. A high payout ratio of 62% generally happens when a company can't find better uses for the cash. Combined with slim earnings growth in the past few years, Akzo Nobel could be signalling that its future growth prospects are thin. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Akzo Nobel has lifted its dividend by approximately 2.0% a year on average. Has Akzo Nobel got what it takes to maintain its dividend payments? Earnings per share growth has been unremarkable, and while the company is paying out a majority of its earnings and cash flow in the form of dividends, the dividend payments don't appear excessive. While it does have some good things going for it, we're a bit ambivalent and it would take more to convince us of Akzo Nobel's dividend merits. If you're not too concerned about Akzo Nobel's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. Our analysis shows 2 warning signs for Akzo Nobel that we strongly recommend you have a look at before investing in the company. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
13-04-2025
- Business
- Yahoo
In the wake of Akzo Nobel N.V.'s (AMS:AKZA) latest €886m market cap drop, institutional owners may be forced to take severe actions
Given the large stake in the stock by institutions, Akzo Nobel's stock price might be vulnerable to their trading decisions The top 25 shareholders own 49% of the company Insiders have bought recently This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Every investor in Akzo Nobel N.V. (AMS:AKZA) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk). And institutional investors endured the highest losses after the company's share price fell by 9.5% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 22% might not go down well especially with this category of shareholders. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. Hence, if weakness in Akzo Nobel's share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors. Let's delve deeper into each type of owner of Akzo Nobel, beginning with the chart below. Check out our latest analysis for Akzo Nobel Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. Akzo Nobel already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Akzo Nobel's earnings history below. Of course, the future is what really matters. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Akzo Nobel. Looking at our data, we can see that the largest shareholder is Dodge & Cox with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.4% and 5.0% of the stock. Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of Akzo Nobel N.V.. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own €3.2m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Akzo Nobel. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It's always worth thinking about the different groups who own shares in a company. But to understand Akzo Nobel better, we need to consider many other factors. For example, we've discovered 2 warning signs for Akzo Nobel (1 can't be ignored!) that you should be aware of before investing here. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
15-03-2025
- Business
- Yahoo
Akzo Nobel's (AMS:AKZA) Dividend Will Be €1.54
Akzo Nobel N.V. (AMS:AKZA) has announced that it will pay a dividend of €1.54 per share on the 7th of May. This means that the annual payment will be 3.2% of the current stock price, which is in line with the average for the industry. View our latest analysis for Akzo Nobel We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Prior to this announcement, Akzo Nobel was quite comfortably covering its dividend with earnings and it was paying more than 75% of its free cash flow to shareholders. The company is clearly earning enough to pay this type of dividend, but it is definitely focused on returning cash to shareholders, rather than growing the business. Looking forward, earnings per share is forecast to rise by 62.3% over the next year. If the dividend continues on this path, the payout ratio could be 39% by next year, which we think can be pretty sustainable going forward. The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The dividend has gone from an annual total of €1.63 in 2015 to the most recent total annual payment of €1.98. This implies that the company grew its distributions at a yearly rate of about 2.0% over that duration. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Akzo Nobel has seen EPS rising for the last five years, at 5.5% per annum. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. While Akzo Nobel is earning enough to cover the dividend, we are generally unimpressed with its future prospects. This company is not in the top tier of income providing stocks. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've identified 2 warning signs for Akzo Nobel (1 is a bit unpleasant!) that you should be aware of before investing. Is Akzo Nobel not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
02-03-2025
- Business
- Yahoo
Akzo Nobel N.V. Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next
It's been a good week for Akzo Nobel N.V. (AMS:AKZA) shareholders, because the company has just released its latest full-year results, and the shares gained 2.5% to €59.52. Revenues were in line with forecasts, at €11b, although statutory earnings per share came in 12% below what the analysts expected, at €3.17 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Akzo Nobel after the latest results. View our latest analysis for Akzo Nobel Taking into account the latest results, the most recent consensus for Akzo Nobel from 18 analysts is for revenues of €11.0b in 2025. If met, it would imply a credible 2.3% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 16% to €3.68. In the lead-up to this report, the analysts had been modelling revenues of €11.0b and earnings per share (EPS) of €3.98 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts. The consensus price target held steady at €70.47, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Akzo Nobel analyst has a price target of €85.00 per share, while the most pessimistic values it at €57.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Akzo Nobel's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 5.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Akzo Nobel is also expected to grow slower than other industry participants. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Akzo Nobel. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Akzo Nobel analysts - going out to 2027, and you can see them free on our platform here. Before you take the next step you should know about the 2 warning signs for Akzo Nobel (1 doesn't sit too well with us!) that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
