Education
About Us
Working with TipRanks
Follow Us
Arkema S.A. (ARKAY)
OTHER OTC:ARKAY
Top Page
Arkema SA
(OTC:ARKAY)
Select Model
Select Model
Rating:67Neutral
Price Target:
$67.00
â–²(8.63% Upside)
Arkema SA's overall stock score reflects a stable financial position with moderate growth prospects, but challenges in profitability and market conditions weigh on the outlook. The technical analysis provides a slightly positive short-term view, while the high P/E ratio suggests limited upside. The earnings call indicates strategic efforts to manage costs and expand, but market weaknesses remain a concern.
Positive Factors
Cash Generation
Improved cash generation enhances Arkema's ability to reinvest in growth opportunities and maintain financial flexibility, supporting long-term stability.
Strategic Expansions
Expanding into advanced electronics positions Arkema to capitalize on growing demand in data centers, potentially driving future revenue growth.
Cost Management
Effective cost management initiatives enhance profitability and operational efficiency, providing a buffer against economic volatility.
Negative Factors
Profitability Challenges
Persistently low profitability indicates difficulty converting revenue into profit, which could hinder long-term financial health and shareholder returns.
Market Weakness
Continued market weakness in key regions may limit revenue growth and strain Arkema's ability to achieve its financial targets.
Revenue Decline
A significant decline in revenue reflects challenges in maintaining market share and could impact future growth prospects if not addressed.
Arkema SA (ARKAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.72B
Dividend Yield7.04%
Average Volume (3M)520.00
Price to Earnings (P/E)29.7
Beta (1Y)0.80
Revenue Growth-0.85%
EPS Growth-56.84%
CountryUS
Employees21,150
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.18
Shares Outstanding76,060,830
10 Day Avg. Volume0
30 Day Avg. Volume520
Financial Highlights & Ratios
PEG Ratio-1.37
Price to Book (P/B)0.80
Price to Sales (P/S)0.63
P/FCF Ratio17.12
Enterprise Value/Market Cap1.69
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda7.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Arkema SA Business Overview & Revenue Model
Company DescriptionArkema S.A. manufactures and sells specialty chemicals and advanced materials worldwide. The company operates through Adhesive Solutions, Advanced Materials, Coating Solutions, and Intermediates segments. It provides adhesive solutions for construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. The company also offers advanced materials consisting of specialty polyamides and polyvinylidene fluoride; and performance additives, such as specialty surfactants and molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide for use in automotive and transportation, oil and gas, renewable energies, consumer goods, electronics, construction, coatings, animal nutrition, and water treatment sectors. In addition, it provides coating solutions comprising EU/US acrylics and coating resins; sartomer photocure resins and coatex rheology additives; decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbents, water treatment and oil and gas extraction, and 3D printing and electronics industries. Further, the company offers fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.
How the Company Makes MoneyArkema generates revenue primarily through the sale of its specialty chemicals and advanced materials across its three business segments. The High Performance Materials segment contributes significantly to the company's earnings by providing high-value products that command premium pricing due to their advanced properties and applications. Industrial Specialties also provides steady revenue through a diverse portfolio of products, including performance additives and intermediates that cater to multiple industries. Additionally, the Coating Solutions segment focuses on innovative and sustainable solutions, enhancing its appeal in an eco-conscious market. Arkema's revenue model is further bolstered by strategic partnerships and collaborations with other companies, allowing for joint ventures and access to new markets, which expand its customer base and enhance revenue generation. The company also benefits from ongoing investments in research and development to drive innovation, ensuring a competitive edge and long-term profitability.
Arkema SA Earnings Call Summary
Earnings Call Date:Nov 07, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Arkema's strategic expansions and successful cost management, but these were overshadowed by weaker-than-expected market conditions in the U.S. and Europe, leading to significant declines in EBITDA and revenue. The company is taking steps to mitigate these challenges, but the outlook remains cautious.Q3-2025 Updates
Positive Updates
Major Project Update
Arkema's major project is expected to bring in EUR 60 million additional EBITDA in 2025 versus 2024, up from the initially estimated EUR 50 million due to strong momentum in PVDF for batteries and new generation fluorospecialties.
Expansion in Advanced Electronics
Arkema announces expansion in the advanced electronics market, specifically data centers, with expected significant growth prospects, though starting from a low base.
Successful Cost-Cutting Initiatives
Arkema is on track to deliver EUR 100 million of fixed and variable cost savings by year-end. This includes efforts to offset inflation in 2025 and 2026.
Solid Cash Flow and Reduced Debt
Arkema delivered EUR 207 million recurring cash flow, up compared to last year despite lower earnings, and reduced CapEx next year to EUR 600 million while maintaining a robust balance sheet.
Negative Updates
Weaker-than-Expected U.S. Market
Arkema faced lower demand in the U.S. over the summer, attributed to ongoing uncertainty around tariffs and supply chain frictions, impacting overall performance.
EBITDA Decline
Despite the cost-cutting efforts, Arkema's EBITDA was down to EUR 310 million, with segments like Coatings and Intermediates experiencing significant volatility.
Revenue Decline
Q3 sales were down 8.6% year-on-year, impacted by a negative 3.9% currency effect and a 2.5% volume decrease due to weak demand in the U.S. and Europe.
Reduced Guidance
Arkema's updated guidance reflects a cautious outlook with an expected EBITDA of between EUR 1.25 billion and EUR 1.3 billion in 2025, lower than previous forecasts.
Company Guidance
During Arkema's Third Quarter 2025 Results and Outlook Conference Call, the company provided updated guidance amidst a challenging macroeconomic environment. Despite a weaker-than-expected U.S. market and low demand in Europe, Arkema reported substantial growth in several key markets, with sales up by 20% in batteries, sports, 3D printing, healthcare, and new generation fluorospecialties. Arkema increased its expected EBITDA contribution from major projects to EUR 60 million for 2025, up from the previously forecasted EUR 50 million. Additionally, the company is on track to achieve EUR 100 million in fixed and variable cost savings by the end of the year and plans to reduce capital expenditures to EUR 600 million in 2026. Arkema's Q3 sales were EUR 2.2 billion, representing an 8.6% year-on-year decline, while Q3 EBITDA stood at EUR 310 million. The company anticipates an EBITDA range of EUR 1.25 billion to EUR 1.3 billion for 2025.Arkema SA Financial Statement Overview
Summary
Arkema SA shows a stable financial position with moderate growth prospects. The income statement highlights challenges in profitability, with a low net profit margin of 1.55%. The balance sheet is robust with a strong equity base, but the return on equity is low at 1.95%. Cash flow improvements are notable, with a 13.62% growth in free cash flow, though alignment with net income needs attention.Income Statement
Arkema SA's income statement shows moderate performance with a slight revenue growth of 1.71% in the TTM period. The gross profit margin is healthy at 37.96%, but the net profit margin is low at 1.55%, indicating challenges in converting revenue into profit. EBIT and EBITDA margins have decreased compared to previous years, suggesting pressure on operational efficiency.Balance Sheet
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.74. However, the return on equity has decreased to 1.95%, indicating lower profitability for shareholders. The equity ratio remains strong, showing a solid capital structure.Cash Flow
Cash flow analysis reveals a positive free cash flow growth of 13.62% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio of 0.61 suggests that cash flow generation is not fully aligned with net income, which could be a concern for liquidity.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.60B | 9.54B | 9.51B | 11.55B | 9.52B | 7.88B |
| Gross Profit | 1.79B | 1.94B | 1.96B | 2.58B | 2.14B | 1.55B |
| EBITDA | 1.04B | 1.31B | 1.33B | 1.81B | 1.87B | 1.22B |
| Net Income | 148.90M | 354.00M | 418.00M | 965.00M | 1.31B | 332.00M |
Balance Sheet | ||||||
| Total Assets | 16.80B | 15.21B | 14.52B | 13.51B | 12.30B | 10.71B |
| Cash, Cash Equivalents and Short-Term Investments | 2.29B | 2.01B | 2.04B | 1.59B | 2.29B | 1.63B |
| Total Debt | 6.29B | 4.55B | 4.28B | 3.26B | 2.76B | 2.80B |
| Total Liabilities | 6.88B | 7.45B | 7.06B | 6.17B | 5.95B | 5.48B |
| Stockholders Equity | 7.22B | 7.53B | 7.20B | 7.30B | 6.30B | 5.19B |
Cash Flow | ||||||
| Free Cash Flow | 252.23M | 353.00M | 593.00M | 766.00M | 152.00M | 510.00M |
| Operating Cash Flow | 1.03B | 1.12B | 1.27B | 1.50B | 915.00M | 1.11B |
| Investing Cash Flow | -878.74M | -940.00M | -1.35B | -2.34B | 473.00M | -458.00M |
| Financing Cash Flow | -184.10M | -207.00M | 516.00M | 168.00M | -652.00M | -535.00M |
Arkema SA Technical Analysis
Positive
61.68
Price Trends
60.11
Positive
62.68
Negative
67.16
Negative
Market Momentum
0.39
Negative
53.72
Neutral
50.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKAY, the sentiment is Positive. The current price of 61.68 is above the 20-day moving average (MA) of 61.23, above the 50-day MA of 60.11, and below the 200-day MA of 67.16, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 50.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARKAY.
Arkema SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $7.84B | 11.47 | 12.24% | 5.33% | -3.33% | -19.59% | |
71 Outperform | $14.22B | 21.38 | 22.72% | 1.96% | 3.09% | 12.25% | |
67 Neutral | $4.72B | 29.66 | 2.19% | 7.04% | -0.85% | -56.84% | |
67 Neutral | $24.10B | 19.17 | 16.31% | 2.71% | -12.98% | -11.34% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $17.70B | -42.59 | -2.84% | 2.41% | -3.01% | 82.30% | |
52 Neutral | $15.68B | -12.82 | -10.44% | 12.78% | -19.65% | -157.13% |
* Basic Materials Sector Average
ARKAY
Arkema SA
60.47
-10.73
-15.07%
EMN
Eastman Chemical
68.07
-19.84
-22.56%
IFF
International Flavors & Fragrances
69.61
-12.15
-14.86%
LYB
LyondellBasell
48.67
-19.89
-29.01%
PPG
PPG Industries
107.59
-5.94
-5.23%
RPM
RPM International
111.68
-9.99
-8.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.