Croda International PLC
🇬🇧 CRDA.LSE · London · GB00BJFFLV09
Materials
GBX 2919.50 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
65.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 2919.50 ÷ 44.40 = 65.8
TTM period through: 2025-12-31
Forward P/E (estimated): 16.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 66.3
Yield (Fwd)
3.80%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.78%
Div. Growth (5Y CAGR)
4.5%
Growth Streak
5 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
1.4x
Latest quarter: 2.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 2.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
250.0%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 249.8%
Cash Flow Payout (TTM): 53.5%
FCF Coverage (TTM): 1.11x
ROE
2.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
18.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Croda International PLC is a specialty chemicals manufacturer facing severe structural headwinds from the loss of pandemic-era vaccine contracts, strict new EU microplastic regulations, and ongoing environmental litigation. With trailing earnings severely depressed (pushing P/E to 65.75x) and the business undergoing a capital-intensive regulatory transition, the long-term execution risks heavily outweigh the currently cash-covered 3.8% yield. Classified in the BELOW THRESHOLD quadrant, this stock is not recommended for conservative dividend strategies seeking stability and proven business models.
Sector Context
Croda International PLC is a specialty chemicals company that manufactures proprietary ingredients and delivery systems for consumer care, life sciences, and industrial markets. While the materials sector provides critical inputs to essential consumer goods, specialty chemical manufacturers are highly exposed to stringent environmental regulations, shifting chemical phase-outs, and capital-intensive R&D requirements, making their cash flows less predictable than regulated utility monopolies.
📊 Strategy Analysis
- • Conservative balance sheet with Net Debt/EBITDA of 1.38x provides essential financial flexibility during the current transition period.
- • Free cash flow currently covers the 3.78% dividend yield (53.51% FCF payout ratio), ensuring short-term dividend sustainability despite depressed accounting earnings.
⚠ What to Watch
- • Permanent structural decline in high-margin life sciences revenue following the late 2025 expiration of the major Pfizer COVID-19 vaccine excipient contract.
- • Severe regulatory headwinds from EU REACH microplastic phase-outs (2027-2029) and impending PFAS restrictions require massive, capital-intensive re-engineering of the core product library.
- • Valuation multiples are highly elevated relative to declining fundamentals, with TTM P/E at 65.75x and the current price of 2919.50 GBX vastly exceeding the fair value upper bound estimate of 666.0 GBX.
- • Significant ongoing legal liabilities, including Ethylene Oxide (EtO) toxic tort litigation regarding the Atlas Point facility and a July 2025 trade secrets misappropriation lawsuit.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-06-06
Disclaimer: This information is for educational purposes only. Not financial advice.