| Croda International PLC (GB00BJFFLV09) | |||
30,47 GBXStand (close): 03.07.25 |
 |
||
Nachrichten |
||
| Datum / Uhrzeit | Titel | Bewertung |
| 15.04.25 05:40:30 | Croda International (LON:CRDA) shareholders have endured a 62% loss from investing in the stock three years ago |  |
| Investing in stocks inevitably means buying into some companies that perform poorly. Long term Croda International Plc (LON:CRDA) shareholders know that all too well, since the share price is down considerably over three years. Unfortunately, they have held through a 65% decline in the share price in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 44% lower in that time. Shareholders have had an even rougher run lately, with the share price down 14% in the last 90 days. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. We've discovered 1 warning sign about Croda International. View them for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Croda International saw its EPS decline at a compound rate of 21% per year, over the last three years. This reduction in EPS is slower than the 29% annual reduction in the share price. So it seems the market was too confident about the business, in the past. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).LSE:CRDA Earnings Per Share Growth April 15th 2025 We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Croda International's earnings, revenue and cash flow. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Croda International the TSR over the last 3 years was -62%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective Investors in Croda International had a tough year, with a total loss of 41% (including dividends), against a market gain of about 3.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 6% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Croda International , and understanding them should be part of your investment process. Story Continues Croda International is not the only stock that insiders are buying. For those who like to find lesser know companies this freelist of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This 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. View Comments |
||
| 31.03.25 14:12:07 | Returns On Capital Signal Tricky Times Ahead For Croda International (LON:CRDA) | |
| If you're looking for a multi-bagger, there's a few things to keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after briefly looking over the numbers, we don't think Croda International (LON:CRDA) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Understanding Return On Capital Employed (ROCE) For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for Croda International, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.073 = UK£232m ÷ (UK£3.5b - UK£337m) (Based on the trailing twelve months to December 2024). So, Croda International has an ROCE of 7.3%. Ultimately, that's a low return and it under-performs the Chemicals industry average of 9.8%. Check out our latest analysis for Croda International LSE:CRDA Return on Capital Employed March 31st 2025 In the above chart we have measured Croda International's prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Croda International . What The Trend Of ROCE Can Tell Us In terms of Croda International's historical ROCE movements, the trend isn't fantastic. Over the last five years, returns on capital have decreased to 7.3% from 21% five years ago. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It may take some time before the company starts to see any change in earnings from these investments. The Key Takeaway In summary, Croda International is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Since the stock has declined 24% over the last five years, investors may not be too optimistic on this trend improving either. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere. One more thing to note, we've identified 1 warning sign with Croda International and understanding it should be part of your investment process. Story Continues While Croda International may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this freelist here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This 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. View Comments |
||
| 15.03.25 08:21:55 | Croda International Full Year 2024 Earnings: EPS Misses Expectations | |
| Croda International (LON:CRDA) Full Year 2024 Results Key Financial Results Revenue: UK£1.63b (down 3.9% from FY 2023). Net income: UK£158.5m (down 7.3% from FY 2023). Profit margin: 9.7% (in line with FY 2023). EPS: UK£1.14 (down from UK£1.23 in FY 2023).LSE:CRDA Revenue and Expenses Breakdown March 15th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Croda International EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.7%. The primary driver behind last 12 months revenue was the Consumer Care segment contributing a total revenue of UK£920.0m (57% of total revenue). Notably, cost of sales worth UK£894.2m amounted to 55% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£422.8m (73% of total expenses). Explore how CRDA's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 3.9% decline forecast for the Chemicals industry in the United Kingdom. Performance of the British Chemicals industry. The company's shares are down 4.5% from a week ago. Risk Analysis Before we wrap up, we've discovered 1 warning sign for Croda International that you should be aware of. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This 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. View Comments |
||
| 09.03.25 08:25:26 | Is Croda International Plc's (LON:CRDA) Stock On A Downtrend As A Result Of Its Poor Financials? | |
| With its stock down 6.3% over the past three months, it is easy to disregard Croda International (LON:CRDA). Given that stock prices are usually driven by a company’s fundamentals over the long term, which in this case look pretty weak, we decided to study the company's key financial indicators. In this article, we decided to focus on Croda International's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits. See our latest analysis for Croda International How Do You Calculate Return On Equity? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Croda International is: 6.9% = UK£160m ÷ UK£2.3b (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.07 in profit. Why Is ROE Important For Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. Croda International's Earnings Growth And 6.9% ROE At first glance, Croda International's ROE doesn't look very promising. However, its ROE is similar to the industry average of 7.9%, so we won't completely dismiss the company. Having said that, Croda International's net income growth over the past five years is more or less flat. Remember, the company's ROE is not particularly great to begin with. So that could also be one of the reasons behind the company's flat growth in earnings. We then compared Croda International's net income growth with the industry and found that the average industry growth rate was 2.7% in the same 5-year period.LSE:CRDA Past Earnings Growth March 9th 2025 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Has the market priced in the future outlook for CRDA? You can find out in our latest intrinsic value infographic research report. Story Continues Is Croda International Making Efficient Use Of Its Profits? With a high three-year median payout ratio of 78% (implying that the company keeps only 22% of its income) of its business to reinvest into its business), most of Croda International's profits are being paid to shareholders, which explains the absence of growth in earnings. Moreover, Croda International has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Existing analyst estimates suggest that the company's future payout ratio is expected to drop to 61% over the next three years. The fact that the company's ROE is expected to rise to 11% over the same period is explained by the drop in the payout ratio. Conclusion In total, we would have a hard think before deciding on any investment action concerning Croda International. Because the company is not reinvesting much into the business, and given the low ROE, it's not surprising to see the lack or absence of growth in its earnings. That being so, the latest industry analyst forecasts show that the analysts are expecting to see a huge improvement in the company's earnings growth rate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This 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. View Comments |
||
| 20.02.25 08:02:12 | Croda International And 2 Other UK Dividend Stocks To Consider | |
| The UK stock market has been grappling with challenges as the FTSE 100 index recently faltered, driven by weak trade data from China and a global economic slowdown. In such uncertain times, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those looking to navigate the current market volatility. Top 10 Dividend Stocks In The United Kingdom Name Dividend Yield Dividend Rating Pets at Home Group (LSE:PETS) 5.69% ★★★★★★ OSB Group (LSE:OSB) 7.84% ★★★★★☆ Dunelm Group (LSE:DNLM) 7.83% ★★★★★☆ Man Group (LSE:EMG) 5.89% ★★★★★☆ DCC (LSE:DCC) 3.72% ★★★★★☆ Epwin Group (AIM:EPWN) 5.66% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.88% ★★★★★☆ NWF Group (AIM:NWF) 4.70% ★★★★★☆ Grafton Group (LSE:GFTU) 4.16% ★★★★★☆ James Latham (AIM:LTHM) 7.24% ★★★★★☆ Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener. Let's uncover some gems from our specialized screener. Croda International Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Croda International Plc operates in the consumer care, life sciences, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of approximately £4.43 billion. Operations: Croda International Plc generates revenue through its key segments: Consumer Care (£898.90 million), Life Sciences (£545.30 million), and Industrial Specialties (£185.30 million). Dividend Yield: 3.4% Croda International's dividend payments, although reliable and stable over the past decade, are not well covered by earnings with a high payout ratio of 93.5%. The cash payout ratio of 80.4% indicates dividends are supported by cash flows, but sustainability concerns remain. The dividend yield of 3.44% is below top-tier UK payers. Recent participation in the Bank of America European Materials Conference highlights Croda's ongoing engagement with investors and industry stakeholders. Click here and access our complete dividend analysis report to understand the dynamics of Croda International. Our valuation report here indicates Croda International may be overvalued.LSE:CRDA Dividend History as at Feb 2025 Games Workshop Group Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Games Workshop Group PLC designs, manufactures, distributes, and sells fantasy miniature figures and games globally, with a market cap of £4.70 billion. Operations: Games Workshop Group PLC generates revenue through its Core segment, which accounts for £528.50 million, and its Licensing segment, contributing £49 million. Dividend Yield: 3.8% Games Workshop Group's dividend payments have grown over the past decade, showing reliability and stability. However, with a cash payout ratio of 111.6%, dividends are not well covered by free cash flows, raising sustainability concerns despite earnings coverage at a 77.2% payout ratio. The dividend yield of 3.78% is below top-tier UK payers. Recent board changes include Eric Maugein's appointment as Non-Executive Director, potentially influencing future strategic directions in new markets. Story Continues Dive into the specifics of Games Workshop Group here with our thorough dividend report. Upon reviewing our latest valuation report, Games Workshop Group's share price might be too optimistic.LSE:GAW Dividend History as at Feb 2025 Kingfisher Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Kingfisher plc, with a market cap of £4.34 billion, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally through its subsidiaries. Operations: Kingfisher plc generates revenue of £12.86 billion from its supply of home improvement products and services across multiple regions. Dividend Yield: 5.1% Kingfisher's dividend payments are well-covered by both earnings and cash flows, with a payout ratio of 67% and a cash payout ratio of 20.9%. However, the dividends have been volatile over the past decade, affecting reliability. The yield is below top-tier UK payers at 5.07%. Recent board changes include Ian McLeod's appointment as Non-Executive Director, bringing extensive retail experience that may influence future strategic decisions amidst ongoing leadership transitions. Get an in-depth perspective on Kingfisher's performance by reading our dividend report here. Our expertly prepared valuation report Kingfisher implies its share price may be lower than expected.LSE:KGF Dividend History as at Feb 2025 Summing It All Up Investigate our full lineup of 60 Top UK Dividend Stocks right here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Ready For A Different Approach? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include LSE:CRDA LSE:GAW and LSE:KGF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
||
| 19.02.25 14:11:40 | Are Croda International Plc (LON:CRDA) Investors Paying Above The Intrinsic Value? |  |
| Key Insights The projected fair value for Croda International is UK£24.72 based on 2 Stage Free Cash Flow to Equity Current share price of UK£32.20 suggests Croda International is potentially 30% overvalued Our fair value estimate is 43% lower than Croda International's analyst price target of UK£43.45 Today we will run through one way of estimating the intrinsic value of Croda International Plc (LON:CRDA) by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. There's really not all that much to it, even though it might appear quite complex. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Check out our latest analysis for Croda International Step By Step Through The Calculation We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£150.8m UK£183.7m UK£189.0m UK£193.8m UK£198.6m UK£203.4m UK£208.2m UK£213.1m UK£218.1m UK£223.2m Growth Rate Estimate Source Analyst x5 Analyst x3 Analyst x1 Est @ 2.53% Est @ 2.46% Est @ 2.41% Est @ 2.38% Est @ 2.36% Est @ 2.34% Est @ 2.33% Present Value (£, Millions) Discounted @ 7.5% UK£140 UK£159 UK£152 UK£145 UK£138 UK£132 UK£125 UK£119 UK£114 UK£108 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = UK£1.3b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.5%. Story Continues Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£223m× (1 + 2.3%) ÷ (7.5%– 2.3%) = UK£4.4b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£4.4b÷ ( 1 + 7.5%)10= UK£2.1b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is UK£3.5b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of UK£32.2, the company appears potentially overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.LSE:CRDA Discounted Cash Flow February 19th 2025 Important Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Croda International as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.5%, which is based on a levered beta of 1.018. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Croda International Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Chemicals market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual revenue is forecast to grow faster than the British market. Threat Dividends are not covered by earnings. Annual earnings are forecast to grow slower than the British market. Moving On: Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price exceeding the intrinsic value? For Croda International, we've put together three relevant factors you should explore: Risks: For example, we've discovered 1 warning sign for Croda International that you should be aware of before investing here. Future Earnings: How does CRDA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every British stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This 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. View Comments |
||
| 22.01.25 08:03:56 | 3 UK Dividend Stocks Offering Yields Up To 4.9% | |
| Amidst the backdrop of faltering trade data from China and its impact on the UK market, the FTSE 100 has recently experienced a downturn, reflecting broader global economic challenges. In such uncertain times, dividend stocks can offer a measure of stability and income potential for investors seeking to navigate these turbulent waters. Top 10 Dividend Stocks In The United Kingdom Name Dividend Yield Dividend Rating Pets at Home Group (LSE:PETS) 6.08% ★★★★★★ Keller Group (LSE:KLR) 3.47% ★★★★★☆ OSB Group (LSE:OSB) 8.20% ★★★★★☆ Dunelm Group (LSE:DNLM) 8.06% ★★★★★☆ Man Group (LSE:EMG) 5.98% ★★★★★☆ DCC (LSE:DCC) 3.66% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.82% ★★★★★☆ Grafton Group (LSE:GFTU) 4.04% ★★★★★☆ RS Group (LSE:RS1) 3.27% ★★★★★☆ James Latham (AIM:LTHM) 6.78% ★★★★★☆ Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener. Let's take a closer look at a couple of our picks from the screened companies. Croda International Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Croda International Plc operates in the consumer care, life science, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of approximately £4.69 billion. Operations: Croda International Plc's revenue is primarily derived from its Consumer Care segment (£898.90 million), followed by Life Sciences (£545.30 million) and Industrial Specialties (£185.30 million). Dividend Yield: 3.2% Croda International has a history of stable and growing dividends over the past decade, though its current dividend yield of 3.25% is lower than the top UK payers. The company's high payout ratio suggests dividends are not well covered by earnings, yet they are supported by cash flows with an 80.4% cash payout ratio. Recent sales growth to £407 million in Q3 2024 indicates positive momentum, despite upcoming board changes affecting audit oversight. Get an in-depth perspective on Croda International's performance by reading our dividend report here. Our expertly prepared valuation report Croda International implies its share price may be too high.LSE:CRDA Dividend History as at Jan 2025 Games Workshop Group Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Games Workshop Group PLC designs, manufactures, distributes, and sells fantasy miniature figures and games globally, with a market cap of £4.61 billion. Operations: Games Workshop Group PLC generates revenue primarily from its Core segment, amounting to £528.50 million, and Licensing, which contributes £49 million. Dividend Yield: 3.9% Games Workshop Group has consistently increased its dividends over the past decade, with recent announcements raising total dividends for 2024/25 to £4.20 per share. Despite a dividend yield of 3.86%, lower than top UK payers, dividends are not well covered by cash flows due to a high payout ratio of 111.6%. However, earnings growth and stable dividend history support its reliability as a dividend stock amidst strong financial performance and strategic media partnerships. Story Continues Delve into the full analysis dividend report here for a deeper understanding of Games Workshop Group. Our valuation report here indicates Games Workshop Group may be overvalued.LSE:GAW Dividend History as at Jan 2025 Kingfisher Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Kingfisher plc, with a market cap of £4.50 billion, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally. Operations: Kingfisher plc generates £12.86 billion from its supply of home improvement products and services across its key markets. Dividend Yield: 5% Kingfisher's dividend payments have been unreliable and volatile over the past decade, despite a reasonable payout ratio of 67% and strong cash flow coverage at 21.2%. The dividend yield of 4.96% is below the top UK payers, but the stock offers value with a price-to-earnings ratio of 13x against the market average of 16x. Recent board changes include Ian McLeod's appointment as Non-Executive Director, which may influence future strategic decisions. Unlock comprehensive insights into our analysis of Kingfisher stock in this dividend report. In light of our recent valuation report, it seems possible that Kingfisher is trading beyond its estimated value.LSE:KGF Dividend History as at Jan 2025 Next Steps Click this link to deep-dive into the 63 companies within our Top UK Dividend Stocks screener. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free. Seeking Other Investments? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include LSE:CRDA LSE:GAW and LSE:KGF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
||
| 29.12.24 09:42:29 | Is Croda International Plc (CRDA.L) Among the U.K. Dividend Aristocrats for 2024? | |
| We recently compiled a list of the U.K. Dividend Aristocrats List: 2024 Rankings by Yield.In this article, we are going to take a look at where Croda International Plc (LON:CRDA.L) stands against the other U.K. dividend aristocrats. In recent years, investors have turned away from UK equities, opting instead for global stocks, particularly high-growth options like US technology companies. The UK stock market is contracting at its fastest rate in over a decade, driven by takeovers of London-listed companies. According to Bloomberg data, approximately 45 companies have been delisted from the London market this year due to mergers and acquisitions, representing a 10% increase compared to the total for last year. This marks the highest number of delistings since 2010. Meanwhile, the value of deals targeting UK companies has surged by 81% this year, exceeding $160 billion. Earlier this year, UK equities seemed to be experiencing a shift in sentiment among both large institutions and smaller investors. The British stock market continues to attract bargain hunters, as UK equities are now trading at a record discount of over 40% compared to global counterparts, based on Bloomberg data. Many of the takeover targets have been mid-cap companies listed on London’s AIM market, which typically feature low trading volumes and limited analyst attention. That said, in November, investors returned to UK equity funds after three and a half years of consistent monthly withdrawals and a significant sell-off ahead of the Budget. Data from Calastone shows that retail investors directed a net £317 million into funds focused on UK stocks during the month. This inflow marks a notable shift, ending 41 consecutive months of net outflows, during which over £25 billion was withdrawn since May 2021. Also read: 10 Undervalued Dividend Aristocrats To Buy According to Hedge Funds The change in investor sentiment follows a challenging October for equity funds, which experienced record outflows as UK investors withdrew their money due to fears that the chancellor would raise capital gains tax (CGT). At the end of October, during the Budget announcement, Chancellor Rachel Reeves confirmed an immediate CGT increase. The lower rate rose from 10% to 18%, while the higher rate climbed from 20% to 24%. Analysts suggest the UK stock market could be nearing a recovery, but the timing and pace of this turnaround remain uncertain. This is where dividend stocks play a key role. Prioritizing stocks with rising dividends can offer stability and consistency through different market cycles. In addition, they provide an opportunity for long-term growth, compounding returns over time until share prices rebound. The UK market offers one of the highest dividend yields among major markets. The FTSE 100 boasts a yield of 3.68%, while the FTSE 250, representing medium-sized UK companies, offers slightly lower yields but still provides attractive income opportunities. This allows investors to focus on higher-growth areas, such as smaller companies, while benefiting from increasing dividends. According to a report by BlackRock, currently, UK market dividends are growing at a rate of 2-3%, roughly in line with long-term inflation. Stocks with growing dividends typically have reliable cash flows, enabling them to increase payouts over time. Story Continues Janus Henderson's 2023 annual dividend report confirmed the rise in dividend growth, noting that the UK distributed approximately $86 billion in dividends in 2023, a notable increase from the $63.1 billion paid out in 2020. Given this, we will take a look at some of the best FTSE dividend stocks according to yield. Our Methodology: For this list, we scanned over 40 holdings of the UK Dividend Aristocrats ETF, which tracks the performance of the highest-yielding UK companies with at least 7 consecutive years of dividend growth. From this list, we chose 10 stocks with the highest dividend yields as of December 28 and arranged them in order from lowest to highest yield. We also measured hedge fund sentiment around each stock according to Insider Monkey’s database of 900 as of Q3 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). A scientist in a lab coat mixing the chemicals for the Liposomal Bcl-2 drug development. Croda International Plc (LON:CRDA.L) Dividend Yield as of December 28: 3.23% Croda International Plc (LON:CRDA.L) is a specialty chemicals company, headquartered in Snaith, England. The company specializes in a diverse range of chemicals and related products. The stock has suffered a lot this year, declining by over 33.4% in the past 12 months. The drop is largely due to the cyclical nature of the chemicals industry. The company's high fixed costs mean that when revenues fall, profits take a much sharper hit. This type of business carries inherent risks, but Croda also has long-term strengths that make it worth serious consideration, especially at its current low valuation. Inventory levels are expected to normalize over time, and analysts predict that Croda International Plc (LON:CRDA.L) will perform well when that happens. While its profits tend to decline more steeply than sales during periods of weak demand, they are also expected to rise more rapidly during a recovery. Another key strength lies in the company’s competitive edge, supported by over 1,600 patents. This strong market position will be crucial when demand eventually rebounds. Croda International Plc (LON:CRDA.L) reported mixed earnings in the first half of 2024. The company reported revenue of £816 million, falling by 7.4% from the same period last year. Its operating profit for the period came in at £114.4 million. Of all the segments, only Consumer Care recorded growth of 3% on a YoY basis. That said, its cash position was promising. The company's free cash flow came in at £122.7 million, showing a significant 69% growth from the first half of 2023. Its net debt also fell to £507.9 million, from £537.6 million in December 2023. Croda International Plc (LON:CRDA.L), one of the best FTSE dividend stocks, has a 22-year run of paying regular dividends to shareholders. During this period, the company raised its annual dividend from £0.0759 per share to £0.62 per share. Currently, it offers an interim dividend of £0.47 per share for a dividend yield of 3.23%, as of December 28. Overall CRDA.L ranks 5th on our list of the U.K. dividend aristocrats. While we acknowledge the potential of CRDA.L as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRDA.L but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT:8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article is originally published at Insider Monkey. View Comments |
||
| 24.12.24 08:04:47 | Discover 3 Top UK Dividend Stocks | |
| In the current climate, the UK's FTSE 100 index has faced challenges as weak trade data from China impacts globally connected sectors, highlighting vulnerabilities in commodity-dependent industries. Amid these fluctuations, dividend stocks can offer a measure of stability and income potential, making them an attractive option for investors seeking resilience in uncertain markets. Top 10 Dividend Stocks In The United Kingdom Name Dividend Yield Dividend Rating Pets at Home Group (LSE:PETS) 6.17% ★★★★★★ Keller Group (LSE:KLR) 3.33% ★★★★★☆ 4imprint Group (LSE:FOUR) 3.48% ★★★★★☆ OSB Group (LSE:OSB) 8.27% ★★★★★☆ Dunelm Group (LSE:DNLM) 7.40% ★★★★★☆ Man Group (LSE:EMG) 6.09% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.73% ★★★★★☆ Plus500 (LSE:PLUS) 5.97% ★★★★★☆ Grafton Group (LSE:GFTU) 3.83% ★★★★★☆ James Latham (AIM:LTHM) 6.69% ★★★★★☆ Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener. Let's dive into some prime choices out of the screener. Bodycote Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Bodycote plc offers heat treatment and thermal processing services globally, with a market cap of £1.15 billion. Operations: Bodycote plc's revenue segments include £194.50 million from Aerospace, Defence & Energy in North America, £160 million in Western Europe, and £8 million in Emerging Markets; alongside Automotive & General Industrial revenues of £97.60 million from North America, £237.30 million from Western Europe, and £84 million from Emerging Markets. Dividend Yield: 3.7% Bodycote's dividend payments are well-supported by both earnings and cash flows, with a payout ratio of 69% and a cash payout ratio of 45.4%, respectively. However, its dividend yield of 3.65% is below the top quartile in the UK market. Despite an increase over the past decade, dividends have been volatile, experiencing significant annual drops. Recent strategic moves include a £30 million increase in its buyback plan and ongoing M&A activities to enhance growth prospects. Click here to discover the nuances of Bodycote with our detailed analytical dividend report. In light of our recent valuation report, it seems possible that Bodycote is trading behind its estimated value.LSE:BOY Dividend History as at Dec 2024 Croda International Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Croda International Plc operates in the consumer care, life science, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of approximately £4.74 billion. Operations: Croda International generates revenue through its Consumer Care segment (£898.90 million), Life Sciences segment (£545.30 million), and Industrial Specialties segment (£185.30 million). Story Continues Dividend Yield: 3.2% Croda International's dividend yield of 3.21% is lower than the top UK payers, and its high payout ratio of 93.5% raises sustainability concerns, as earnings do not fully cover dividends. However, cash flows are more supportive with an 80.4% cash payout ratio. Dividends have been stable and growing over the past decade despite these challenges. Recent sales growth to £407 million reflects operational strength amidst executive changes in its audit committee leadership. Unlock comprehensive insights into our analysis of Croda International stock in this dividend report. Our expertly prepared valuation report Croda International implies its share price may be too high.LSE:CRDA Dividend History as at Dec 2024 Kingfisher Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Kingfisher plc, with a market cap of £4.49 billion, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally through its subsidiaries. Operations: Kingfisher plc generates its revenue of £12.86 billion from the supply of home improvement products and services. Dividend Yield: 5% Kingfisher's dividend yield of 4.99% is below the top UK payers, but its dividends are well-covered by earnings and cash flows, with a low cash payout ratio of 21.3%. Despite growth in dividend payments over the past decade, they have been volatile and unreliable. The stock trades at good value compared to peers and industry averages. Recent board changes include Lucinda Riches joining as a Non-Executive Director, potentially impacting future strategic decisions. Get an in-depth perspective on Kingfisher's performance by reading our dividend report here. According our valuation report, there's an indication that Kingfisher's share price might be on the cheaper side.LSE:KGF Dividend History as at Dec 2024 Key Takeaways Discover the full array of 63 Top UK Dividend Stocks right here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free. Seeking Other Investments? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include LSE:BOY LSE:CRDA and LSE:KGF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
||
| 25.11.24 08:06:14 | 3 UK Dividend Stocks Yielding Up To 4.2% | |
| The United Kingdom's FTSE 100 index has recently faced challenges, closing lower amid weak trade data from China and global economic concerns. In such uncertain market conditions, dividend stocks can offer investors a measure of stability and income potential, making them an attractive option for those seeking reliable returns. Top 10 Dividend Stocks In The United Kingdom Name Dividend Yield Dividend Rating James Latham (AIM:LTHM) 6.06% ★★★★★★ Keller Group (LSE:KLR) 3.19% ★★★★★☆ Impax Asset Management Group (AIM:IPX) 8.30% ★★★★★☆ 4imprint Group (LSE:FOUR) 3.28% ★★★★★☆ OSB Group (LSE:OSB) 8.58% ★★★★★☆ Man Group (LSE:EMG) 6.15% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.17% ★★★★★☆ Plus500 (LSE:PLUS) 6.21% ★★★★★☆ Dunelm Group (LSE:DNLM) 6.80% ★★★★★☆ DCC (LSE:DCC) 3.56% ★★★★★☆ Click here to see the full list of 63 stocks from our Top UK Dividend Stocks screener. Let's take a closer look at a couple of our picks from the screened companies. Next 15 Group Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Next 15 Group plc, along with its subsidiaries, offers communications services across the United Kingdom, Europe, Africa, the United States, and the Asia Pacific with a market cap of £402.80 million. Operations: Next 15 Group plc generates revenue through its provision of communications services across multiple regions, including the United Kingdom, Europe, Africa, the United States, and the Asia Pacific. Dividend Yield: 3.8% Next 15 Group's dividend yield of 3.79% is lower than the UK market's top quartile, yet its dividends are well covered by earnings and cash flows, with payout ratios of 25.2% and 23.3%, respectively. Despite past volatility in dividend payments, recent earnings growth—132% over the past year—indicates potential stability. However, high debt levels and volatile share prices pose risks to dividend reliability, though the stock trades at a significant discount to estimated fair value. Click here and access our complete dividend analysis report to understand the dynamics of Next 15 Group. The valuation report we've compiled suggests that Next 15 Group's current price could be quite moderate.AIM:NFG Dividend History as at Nov 2024 Croda International Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Croda International Plc operates in the consumer care, life sciences, and industrial specialty sectors across Europe, the Middle East, Africa, North America, Asia, and Latin America with a market cap of £4.95 billion. Operations: Croda International Plc's revenue is segmented into Consumer Care (£898.90 million), Life Sciences (£545.30 million), and Industrial Specialties (£185.30 million). Dividend Yield: 3.1% Story Continues Croda International's dividend yield of 3.07% is below the UK market's top quartile, with dividends not well covered by earnings due to a high payout ratio of 93.5%. However, cash flows sufficiently cover current payouts at an 80.4% cash payout ratio, and dividends have been stable and reliable over the past decade. Recent Q3 sales increased to £407 million from £387 million last year, indicating some revenue growth amidst executive board changes. Navigate through the intricacies of Croda International with our comprehensive dividend report here. In light of our recent valuation report, it seems possible that Croda International is trading beyond its estimated value.LSE:CRDA Dividend History as at Nov 2024 Kingfisher Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Kingfisher plc, with a market cap of £5.32 billion, supplies home improvement products and services primarily in the United Kingdom, Ireland, France, and internationally through its subsidiaries. Operations: Kingfisher plc generates revenue of £12.86 billion from the supply of home improvement products and services. Dividend Yield: 4.2% Kingfisher's dividend yield of 4.2% is below the top quartile in the UK, but dividends are well covered by earnings with a payout ratio of 67% and cash flows at 21.3%. Despite past volatility, dividends have grown over the last decade. Recent buybacks totaling £142 million could enhance shareholder value. Interim dividends remain consistent at 3.80 pence per share, with a dividend reinvestment plan available for shareholders seeking to reinvest payouts into company shares. Get an in-depth perspective on Kingfisher's performance by reading our dividend report here. According our valuation report, there's an indication that Kingfisher's share price might be on the cheaper side.LSE:KGF Dividend History as at Nov 2024 Next Steps Dive into all 63 of the Top UK Dividend Stocks we have identified here. Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent. Searching for a Fresh Perspective? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include AIM:NFG LSE:CRDA and LSE:KGF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
||
