1 Uk Value Stock Trading At An 11-year Low! Should I Add It To My Isa?

Even with the stock market trading near record highs, there are still plenty of value stocks for investors to explore. That’s because not every business has joined in on the rally party. And some have drifted so far out of favour they are now trading at their lowest point in years.

Croda International‘s (LSE:CRDA) a prime example of this. Since 2021, the shares have collapsed by 65%, and are now trading at an 11-year low. What happened? And is this now a golden buying opportunity for my ISA?

Why has Croda fallen so far?

As a quick reminder, Croda’s a speciality chemicals business, supplying ingredients used in skincare, haircare, medicines, and crop protection products.

The trouble started when customers across its industries went on a post-pandemic destocking spree, working through bloated inventories rather than placing fresh orders.

That hit sales hard. Layer on weaker demand from cost-conscious consumers and a strong prior-year comparison base, and it’s easy to see why growth has been so hard to come by.

But the latest half-year results, published today (1 August), suggest the tide may finally be turning. Across the first six months of 2026, group sales rose to £880.5m, up 2.9% overall and 4.6% organically. Adjusted operating profit climbed 6.7% to £155.8m, and there was a welcome bump to underlying profit margins from 17.2% to 17.7%.

Sadly, that growth wasn’t evenly spread though. Life Sciences’ sales were essentially flat, with Crop Protection sales down 2% against what management described as a tough comparator following a period of heavy customer restocking in the prior year.

North America also remained a soft spot over the half as a whole. But to be fair, the region swung sharply from a 7% decline in the first quarter to 7% growth in the second.

So while this wasn’t a perfect set of results, could the worst finally be in the rearview mirror?

Signs of life beneath the surface

Despite the mixed picture in places, there are some genuinely encouraging details tucked inside the group’s latest results.

Consumer Care, Croda’s largest and most important division, delivered organic sales growth of 8.3% to £523.7m. Beauty Care and Home Care also contributed, up 4% and 9% respectively, as demand for innovation-led products from both global beauty brands and more affordable categories improved.

Even in Fragrances & Flavours, where over 20% of sales are generated in the Middle East, management said the impact from the region’s ongoing geopolitical tension has been limited, with price increases used to offset input cost inflation broadly offsetting some softer regional demand.

Whether that will hold remains to be seen, but it’s worth highlighting that full-year guidance currently remains unchanged, with leadership reaffirming expectations for organic sales growth.

So what’s the verdict?

Croda still has plenty to prove, but today’s half-year results offer the clearest sign yet that the turnaround plan is gaining traction, with profit growing faster than sales and free cash flow up 36.8% to £38.3m on the back of tighter capital discipline.

For now, I’m keeping this business on my watchlist. But if management can continue to demonstrate a credible path to recovery through self-help initiatives, I may have to reconsider.

Should you invest £5,000 in Croda International Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Croda International Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post 1 UK value stock trading at an 11-year low! Should I add it to my ISA? appeared first on The Twelfth Magpie.

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