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Akzo Nobel (ENXTAM:AKZA) Reports Firmer Profitability, Is The Stock Still Undervalued?

Simply Wall St · 13h ago

Earnings event puts Akzo Nobel stock in focus

Akzo Nobel (ENXTAM:AKZA) is back on investors’ radar after reporting its second quarter and half year 2026 results, with quarterly net income higher year on year despite slightly lower sales.

The company posted second quarter sales of €2,589 million compared with €2,626 million a year earlier, while net income for the period was €139 million versus €124 million, pointing to firmer profitability per euro of revenue.

See our latest analysis for Akzo Nobel.

The earnings release has arrived after a mixed stretch for Akzo Nobel’s stock, with a 10.63% 90 day share price return but a year to date share price return that is down 2.76%, and longer term total shareholder returns weaker than recent momentum suggests.

If this earnings move has you rethinking your watchlist, it could be a good moment to broaden the search and check out a screener of 108 top founder-led companies

The recent share price bump, alongside firmer profitability but softer sales, leaves an open question for Akzo Nobel investors: is this move rooted in the earnings profile, or mainly a reset in sentiment that the valuation now needs to test?

Most Popular Narrative: 9.2% Undervalued

Akzo Nobel's most followed valuation narrative places fair value at €63.71 per share, a premium to the latest close at €57.86. This frames the recent earnings move in a different light for anyone focused on long term cash flows rather than short term price action.

The company is capitalizing on accelerating demand for sustainable and eco-friendly coatings, highlighted by their leadership position in low-VOC and sustainable product innovations, which are set to drive premium pricing and increase net margins as regulatory and consumer preferences shift further toward sustainability.

Read the complete narrative.

Curious what kind of revenue path and profit margin lift sit behind that valuation gap, and how much of it depends on tougher pricing power assumptions versus steadier compound growth in core coatings volumes.

Result: Fair Value of €63.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on Akzo Nobel avoiding prolonged volume weakness in mature markets and managing currency swings that could erode revenue and margins across multiple regions.

Find out about the key risks to this Akzo Nobel narrative.

Next Steps

If this mix of cautious optimism around Akzo Nobel has you on the fence, review the full picture of risks and rewards to form your own view by checking the 4 key rewards and 4 important warning signs

Looking for more investment ideas beyond Akzo Nobel?

Akzo Nobel's update is a useful prompt to refresh your wider watchlist, and you may want to consider other opportunities that could better suit your portfolio.

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.