Croda International (CRDA.L)
Materials · LSE · UK
Fundamentals
Valuation and ratings
Croda International trades at £29.29, which is 46% above the £15.70 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 65.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Croda International
Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers consumer care products across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, crop protection, and seed coating systems and enhancement technologies to improve germination. In addition, the company offers industrial specialties, including phase change materials; surfactants, such as emulsifiers, dispersants, wetting agents, detergents, and polymerics; and formulated textile and spin finishes. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.
CRDA.L passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Croda International (CRDA.L) undervalued?
Against our discounted cash flow estimate of £15.70, CRDA.L at £29.29 is 46% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is CRDA.L's P/E ratio?
CRDA.L trades at 65.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.