Croda International Plc (CRDA.L) stock analysis

In our weekly check, Croda International Plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6.

About Croda International Plc

Croda International Plc is a Basic Materials company (Chemicals - Specialty) based in the United Kingdom, listed on LSE as CRDA.L.

What our checks show for CRDA.L

Red flags

• The net margin fell by 13.3 points over 5 years, to 3.6%: the company keeps less of each sale as profit.
• The gross margin fell by 7.9 points, to 35.8%: costs are rising faster than prices.
• Revenue fell 6.7% a year over the last 3 years.
• The net margin is only 3.6%: little room if costs rise.
• The dividend takes 187% of profit: little cushion if profit falls.
• The stock has fallen as much as 77% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 4.5% a year of growth in revenue.
• Earnings per share fell 54.5% a year over the last 3 years.
• Net profit fell 54.3% a year over the last 3 years.
• The stock is still below its previous peak.
• Thinly traded (about 487 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 8.1%.

Strengths

• Net debt is only 1.4x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 11.5 times over.
• Operating cash flow is 4.67x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 64.4% a year over the next years.
• Analysts expect the net margin to improve by 10.5 points from today's 3.6%.
• Free cash flow is 10.1% of revenue: cash for dividends, buybacks or growth.

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BCPC · SXT · PRM · CLMT · CBT · AVNT

Questions

What grade does Croda International Plc (CRDA.L) have?

In our weekly check, Croda International Plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CRDA.L stock?

This week's biggest flags for Croda International Plc: Margins falling, Gross margin falling, Weak revenue growth. In total 12 of 25 checks show a warning or a red flag.

What does Croda International Plc do?

Croda International Plc is a Basic Materials company (Chemicals - Specialty) based in the United Kingdom, listed on LSE as CRDA.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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