Arkema S.A. (ARKAY)
OTHER OTC:ARKAY
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Arkema SA
(OTC:ARKAY)
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Rating:57Neutral
Price Target:
$67.00
â–²(8.63% Upside)
Action:ReiteratedDate:03/01/26
The score is held back primarily by weakened financial performance (lower margins/returns and higher leverage) despite continued positive cash generation. Technicals are supportive with an uptrend and positive momentum, while valuation is a drag due to a very high P/E even with an attractive dividend yield. Earnings-call guidance modestly supports the outlook via cost savings, disciplined CapEx, and slight EBITDA growth expectations, tempered by macro and FX uncertainty.
Positive Factors
Cash generation & conversion
Arkema generated strong recurring operating cash (EUR 464m) and free cash (EUR 390m) with an 88% EBITDA→cash conversion in a weak year. Durable cash generation supports reinvestment in high-return projects, dividend continuity and deleveraging even through industry cycles.
Negative Factors
Profitability deterioration
Margins and profitability compressed sharply in 2025, with net margin near 0.7% and recurring EBIT margin 6.2%. Sustained margin erosion reduces internal reinvestment capacity, depresses ROE and makes the business more reliant on cost actions and cyclical recovery for durable profitability restoration.
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Positive Factors
Negative Factors
Cash generation & conversion
Arkema generated strong recurring operating cash (EUR 464m) and free cash (EUR 390m) with an 88% EBITDA→cash conversion in a weak year. Durable cash generation supports reinvestment in high-return projects, dividend continuity and deleveraging even through industry cycles.
Read all positive factors
Arkema SA (ARKAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.39B
Dividend Yield7.04%
Average Volume (3M)520.00
Price to Earnings (P/E)64.8
Beta (1Y)0.73
Revenue Growth-0.85%
EPS Growth-56.84%
CountryUS
Employees21,150
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.52
Shares Outstanding76,060,830
10 Day Avg. Volume0
30 Day Avg. Volume520
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)0.65
Price to Sales (P/S)0.45
P/FCF Ratio12.12
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit2.29
Enterprise Value/Ebitda6.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.55
Revenue Forecast (FY)$10.52B
Arkema SA Business Overview & Revenue Model
Company Description
Arkema 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 constru...
How the Company Makes Money
Arkema makes money primarily by manufacturing and selling specialty chemical products and materials to industrial customers worldwide. Its revenue model is largely business-to-business: the company produces chemical intermediates and specialty for...
Arkema SA Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: Arkema faced notable top-line and EBITDA pressure in 2025 driven by macro weakness, currency headwinds, destocking and cyclical stress in acrylics and old-generation refrigerants. Offsetting those headwinds, the company delivered strong cash generation (EUR 464m), high cash conversion (88%), accelerated cost savings (~EUR 90m), project ramp-ups that added EBITDA and maintained a stable dividend. Management is focused on efficiency, targeted CapEx, and further project ramp-ups in 2026 while signaling continued macro uncertainty. Overall the positives (cash, savings, project momentum, balance sheet strength and sustainability progress) balance the operational and market challenges.Positive Updates
Strong Cash Generation
Recurring operating cash flow of EUR 464 million (above revised guidance of EUR 300 million) and free cash flow of EUR 390 million despite a challenging year; EBITDA-to-operating-cash conversion rate of 88%.
Negative Updates
Revenue Decline
Group revenues of EUR 9.1 billion, down 5% year-on-year; volumes down 1.6%, price effect negative by 2.1% and currency headwind of -2.9% (notably USD weakening vs EUR).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Cash Generation
Recurring operating cash flow of EUR 464 million (above revised guidance of EUR 300 million) and free cash flow of EUR 390 million despite a challenging year; EBITDA-to-operating-cash conversion rate of 88%.
Read all positive updates
Company Guidance
Guidance for 2026 is for slight EBITDA growth at constant FX versus 2025 (2025 EBITDA €1.25bn, 13.8% margin; revenues €9.1bn), with major projects expected to contribute around €50m of additional EBITDA in 2026 (after ~€60m in 2025); CapEx will be reduced to €600m (2025: €636m); the company expects working capital to remain roughly flat at ~12.5% of sales and recurring cash generation to be broadly comparable to 2025 (recurring cash €464m vs revised guidance €300m; free cash flow €390m including a €74m non‑recurring outflow), with an EBITDA→operating cash conversion of ~88%; Arkema plans continued cost and cash discipline—having delivered ~€90m of fixed/variable cost savings in 2025 and targeting cumulative savings of €250m by 2026 (two years ahead of plan)—together with further headcount reductions (>2% in 2025 and ~3% p.a. over the next three years); financial posture includes net debt + hybrids of ~€3.2bn (net debt/LTM EBITDA 2.5x) and €800m hybrids outstanding after a €300m redemption, while management flags a Q1 FX headwind of ~€25m, expects a more balanced H1/H2 in 2026, and will propose a stable dividend of €3.60/share.Arkema SA Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.71B | 9.54B | 9.51B | 11.55B | 9.52B |
| Gross Profit | 1.55B | 1.94B | 1.96B | 2.58B | 2.14B |
| EBITDA | 1.20B | 1.31B | 1.33B | 1.81B | 1.87B |
| Net Income | 60.51M | 354.00M | 418.00M | 965.00M | 1.31B |
Balance Sheet | |||||
| Total Assets | 14.24B | 15.21B | 14.52B | 13.51B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 2.20B | 2.01B | 2.04B | 1.59B | 2.29B |
| Total Debt | 5.36B | 4.55B | 4.28B | 3.26B | 2.76B |
| Total Liabilities | 8.01B | 7.45B | 7.06B | 6.17B | 5.95B |
| Stockholders Equity | 6.04B | 7.53B | 7.20B | 7.30B | 6.30B |
Cash Flow | |||||
| Free Cash Flow | 323.70M | 353.00M | 593.00M | 766.00M | 152.00M |
| Operating Cash Flow | 934.60M | 1.12B | 1.27B | 1.50B | 915.00M |
| Investing Cash Flow | -591.69M | -940.00M | -1.35B | -2.34B | 473.00M |
| Financing Cash Flow | -251.66M | -207.00M | 516.00M | 168.00M | -652.00M |
Arkema SA Technical Analysis
Positive
61.68
Price Trends
66.91
Positive
63.64
Positive
65.64
Positive
Market Momentum
1.00
Negative
62.93
Neutral
86.25
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 61.68 is below the 20-day moving average (MA) of 64.84, below the 50-day MA of 66.91, and below the 200-day MA of 65.64, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 86.25 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.16B | 70.63 | 21.80% | 1.96% | 3.09% | 12.25% | |
68 Neutral | $8.30B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
68 Neutral | $24.52B | 14.71 | 33.60% | 2.71% | -12.98% | -11.34% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $23.28B | -18.77 | -6.63% | 12.78% | -19.65% | -157.13% | |
57 Neutral | $5.39B | 64.83 | 0.90% | 7.04% | -0.85% | -56.84% | |
57 Neutral | $18.68B | -46.13 | -2.49% | 2.41% | -3.01% | 82.30% |
* Basic Materials Sector Average
ARKAY
Arkema SA
71.10
5.48
8.34%
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45.31%
PPG
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RPM
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110.97
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10.42%
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.