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Arkema S.A. (ARKAY)
OTHER OTC:ARKAY
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Arkema SA
(OTC:ARKAY)
Rating:68Neutral
Price Target:
$79.00
▲(8.88% Upside)
Arkema SA (ARKAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.49B
Dividend Yield5.83%
Average Volume (3M)3.94K
Price to Earnings (P/E)23.2
Beta (1Y)0.85
Revenue Growth0.85%
EPS Growth-36.94%
CountryUS
Employees21,150
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.78
Shares Outstanding76,060,830
10 Day Avg. Volume1,999
30 Day Avg. Volume3,942
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.82
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit5.23
Enterprise Value/Ebitda7.84
Forecast
1Y Price Target
$79.00Price Target Upside8.88% Upside
Rating ConsensusHold
Number of Analyst Covering1
Arkema SA Business Overview & Revenue Model
Company DescriptionArkema SA (ARKAY) is a global leader in specialty chemicals and advanced materials, headquartered in France. The company operates through three main segments: High Performance Materials, Industrial Specialties, and Coating Solutions. Arkema's core products include polymers, additives, and coatings that cater to a diverse range of industries, including automotive, construction, electronics, and healthcare. With a strong emphasis on innovation and sustainability, Arkema is committed to developing high-performance solutions that meet the evolving needs of its customers while minimizing environmental impact.
How the Company Makes MoneyArkema generates revenue primarily through the sale of its specialty chemicals and materials across various industries. The company has established key revenue streams through its three main segments, with High Performance Materials being the largest contributor, driven by demand for advanced polymers and composites. Industrial Specialties and Coating Solutions also play significant roles, with products that include adhesives, sealants, and specialty coatings. Additionally, Arkema engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, which further contributes to its earnings. The company's focus on innovation allows it to command premium pricing for its specialized products, thereby increasing profitability.
Arkema SA Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 2.69%|
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging macroeconomic environment impacting Arkema's performance, particularly in Coating Solutions and due to currency headwinds. However, the company demonstrated resilience in cash generation, growth in Advanced Materials, and strategic investments. The performance in Adhesive Solutions also remained strong despite market pressures.Q2-2025 Updates
Positive Updates
Solid Cash Generation
Arkema generated robust recurring cash flow above EUR 110 million in Q2 2025, reflecting strong working capital management and cost-cutting measures.
Advanced Materials Volume Growth
The Advanced Materials segment saw a 6% increase in volumes, driven by growth in Asia and new business development in high-value markets such as sports, battery, and 3D printing.
Adhesive Solutions Resilience
Despite pressure on volumes, the Adhesive Solutions segment maintained a strong performance with efficiency improvements and strict price discipline.
Strategic Expansion and Investment
Arkema is expanding its capacity in the U.S. and China, with new projects in biofuel additives and organic peroxide, and a new greenfield plant in Singapore for biosource polyamide 11 reaching breakeven.
Negative Updates
Weak Macro Environment Impact
Challenging macroeconomic conditions, including low demand and unfavorable exchange rates, particularly impacted the U.S. and Europe.
Coating Solutions Segment Decline
The Coating Solutions segment experienced significant underperformance due to low cycle market conditions and disappointing downstream volumes, especially in North America.
Currency Headwinds
Arkema faced a negative currency effect of EUR 50 million in EBITDA due to the weakening of the U.S. dollar and other currencies.
Lower Overall Sales and EBITDA
Q2 2025 sales were down 5.6% year-on-year, and EBITDA decreased to EUR 364 million, reflecting decreased contributions from refrigerant gases and Coating Solutions.
Company Guidance
During Arkema's Q2 2025 conference call, the company provided guidance for the remainder of the year amidst challenging macroeconomic conditions. Arkema reported a Q2 EBITDA of EUR 364 million, with a robust EBITDA margin of 15.2%, despite a currency headwind of EUR 50 million impacting results. The company is targeting an annual EBITDA between EUR 1.3 billion and EUR 1.4 billion for 2025, with a corresponding recurring cash flow of EUR 300 million to EUR 400 million. They highlighted the resilience of their high-performance polymers and adhesives, which maintained strong margins close to 20% in the Advanced Materials segment. Arkema plans to achieve EUR 100 million in cost savings by the end of 2025, doubling their initial target and contributing to their strategic initiatives. Capital expenditures are expected to be kept at a maximum of EUR 650 million for the year, aligning with their focus on maintaining a healthy balance sheet with a net debt to EBITDA ratio of around 2.5x.Arkema SA Financial Statement Overview
Summary
Arkema SA demonstrates a mixed financial performance, with stable revenue but declining profitability margins and returns on equity. While debt levels are manageable, the decrease in free cash flow suggests potential liquidity pressures. The company needs to address operational efficiencies and cash flow management to sustain its financial health.Income Statement
Arkema SA shows a stable income statement with a slight decline in total revenue from 2022 to 2024. The gross profit margin remained healthy, hovering around 20% over the years. However, net profit margin decreased from 11.3% in 2021 to 3.7% in 2024, indicating declining profitability. EBIT and EBITDA margins also showed a downward trend, reflecting challenges in maintaining operational efficiency.70
Positive
Balance Sheet
The balance sheet reflects moderate stability with a reasonable debt-to-equity ratio, increasing from 0.52 in 2020 to 0.61 in 2024. The equity ratio improved, suggesting a stronger equity position over total assets. However, the return on equity dropped from 20.8% in 2021 to 4.7% in 2024, indicating diminished returns for shareholders.75
Positive
Cash Flow
Arkema's cash flow statements reveal a challenging situation with free cash flow significantly decreasing from 2020 to 2024 due to higher capital expenditures. The operating cash flow to net income ratio remained stable, but the free cash flow to net income ratio has weakened, reflecting reduced cash generation capacity relative to net income.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.58B | 9.54B | 9.51B | 11.55B | 9.52B | 7.88B |
| Gross Profit | 1.91B | 1.94B | 1.96B | 2.58B | 2.14B | 1.55B |
| EBITDA | 1.27B | 1.31B | 1.33B | 1.97B | 1.87B | 1.22B |
| Net Income | 324.00M | 354.00M | 418.00M | 965.00M | 1.31B | 332.00M |
Balance Sheet | ||||||
| Total Assets | 14.30B | 15.21B | 14.52B | 13.51B | 12.30B | 10.71B |
| Cash, Cash Equivalents and Short-Term Investments | 1.12B | 2.01B | 2.04B | 1.59B | 2.29B | 1.63B |
| Total Debt | 0.00 | 4.55B | 4.28B | 3.26B | 2.76B | 2.80B |
| Total Liabilities | 6.71B | 7.45B | 7.06B | 6.17B | 5.95B | 5.48B |
| Stockholders Equity | 7.37B | 7.53B | 7.20B | 7.30B | 6.30B | 5.19B |
Cash Flow | ||||||
| Free Cash Flow | 270.00M | 353.00M | 593.00M | 766.00M | 152.00M | 510.00M |
| Operating Cash Flow | 1.06B | 1.12B | 1.27B | 1.50B | 915.00M | 1.11B |
| Investing Cash Flow | -934.00M | -940.00M | -1.35B | -2.34B | 473.00M | -458.00M |
| Financing Cash Flow | -1.33B | -207.00M | 516.00M | 168.00M | -652.00M | -535.00M |
Arkema SA Technical Analysis
Positive
72.56
Price Trends
72.10
Positive
71.74
Positive
74.91
Negative
Market Momentum
-0.47
Negative
52.82
Neutral
82.75
Negative
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 72.56 is above the 20-day moving average (MA) of 71.73, above the 50-day MA of 72.10, and below the 200-day MA of 74.91, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 52.82 is Neutral, neither overbought nor oversold. The STOCH value of 82.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARKAY.
Arkema SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.59B | 14.95 | 22.09% | ― | -1.01% | 50.58% | |
76 Outperform | $15.82B | 23.02 | 25.42% | 1.66% | 0.51% | 17.21% | |
68 Neutral | $5.49B | 23.20 | 3.48% | 5.83% | 0.85% | -36.94% | |
67 Neutral | $64.64B | 41.75 | 10.26% | 2.45% | -0.38% | -39.53% | |
63 Neutral | $7.53B | 9.21 | 14.52% | 5.03% | 1.60% | -3.97% | |
63 Neutral | $25.23B | 19.82 | 16.88% | 2.46% | -10.59% | -7.79% | |
58 Neutral | HK$18.24B | 5.36 | -7.29% | 3.70% | -4.08% | -49.01% |
* Basic Materials Sector Average
Performance Comparison
ARKAY
Arkema SA
72.56
-12.57
-14.77%
APD
Air Products and Chemicals
290.46
22.94
8.58%
EMN
Eastman Chemical
65.56
-28.58
-30.36%
PPG
PPG Industries
111.80
-8.52
-7.08%
RPM
RPM International
123.20
8.93
7.81%
AXTA
Axalta Coating Systems
30.41
-4.28
-12.34%
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.