Arkema SA (ARKAY) AI Stock Analysis

• Market Cap: $4.60B
• Dividend Yield: 6.98%
• Average Volume (3M): 520.00
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.82
• Revenue Growth: -0.85%
• EPS Growth: -56.84%
• Country: US
• Employees: 21,150
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.18
• Shares Outstanding: 76,060,830
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 520
• PEG Ratio: -1.37
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 17.12
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 7.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.53
• Revenue Forecast (FY): $10.53B

• Rating: 67 Neutral
• Price Target: $67.00 ▲(11.70% 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 Business Overview & Revenue Model

Company Description

Arkema SA is a global specialty chemicals and advanced materials company headquartered in France. Operating across three main segments – High Performance Materials, Industrial Specialties, and Coating Solutions – Arkema develops and produces a wide range of innovative products tailored for various industries, including automotive, construction, electronics, and oil and gas. The company's core offerings include adhesives, coatings, thermoplastics, and resins, which leverage cutting-edge technologies and sustainable practices to meet the evolving needs of its customers.

How the Company Makes Money

Arkema 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 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

• Technical Analysis Sentiment: Negative
• Last Price: 59.98
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKAY, the sentiment is Negative. The current price of 59.98 is below the 20-day moving average (MA) of 60.50, above the 50-day MA of 59.89, and below the 200-day MA of 68.43, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 28.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARKAY.

Arkema SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	72 Outperform	$7.22B	10.42	12.24%	5.33%	-3.33%	-19.59%
RPM	71 Outperform	$13.50B	19.68	24.05%	1.96%	3.09%	12.25%
ARKAY	67 Neutral	$4.60B	28.63	2.19%	6.98%	-0.85%	-56.84%
PPG	67 Neutral	$23.20B	18.32	16.31%	2.69%	-12.98%	-11.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	61 Neutral	$17.05B	-40.99	-2.84%	2.40%	-3.01%	82.30%
LYB	52 Neutral	$14.03B	-11.34	-10.44%	12.78%	-19.65%	-157.13%

Arkema SA Corporate Events

Arkema Reports Resilient Cash Flow Amid Challenging Q3 2025

Arkema S.A., a leading player in the specialty chemicals industry, focuses on providing innovative solutions across various sectors, including adhesives, advanced materials, and coating solutions. The company reported a challenging third quarter of 2025, with sales declining by 4.7% at constant exchange rates to €2.2 billion, primarily due to decreased demand in the United States and Europe, although Asia showed resilience. Despite the tough market conditions, Arkema achieved strong cash flow generation, reflecting its operational discipline and strategic focus on high-growth markets such as batteries, sports, and healthcare. Key financial metrics showed a decrease in EBITDA to €310 million from €407 million in the previous year, with an EBITDA margin of 14.2%. The company also reported an adjusted net income of €78 million, down from €168 million in Q3 2024. Arkema’s strategic initiatives include cost-cutting efforts to offset fixed costs inflation and a reduction in capital expenditure, aiming for an EBITDA between €1.25 billion and €1.3 billion for the full year 2025. Looking forward, Arkema remains committed to its growth strategy, leveraging its technological platforms and innovation to capture opportunities driven by global megatrends, while managing the current economic and geopolitical challenges.