Arkema S.A. (ARKAY)
OTHER OTC:ARKAY
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Arkema SA
(OTC:ARKAY)
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Rating:60Neutral
Price Target:
$78.00
▲(26.46% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily held back by materially compressed profitability and only moderate cash-flow quality alongside leverage watch-items. Technicals are supportive with a clear uptrend across moving averages and positive momentum. Valuation is a drag due to a high P/E, though the dividend yield meaningfully offsets. Earnings-call guidance suggests modest improvement ahead, but macro, pricing, and cost headwinds remain key risks.
Positive Factors
Cash generation
Sustained operating cash flow (~€1.02B TTM) and positive free cash flow (~€0.40B TTM) provide durable internal funding for capex, dividends and debt servicing. Reliable cash generation supports financing of PVDF/HPP projects and cushions earnings volatility over the medium term.
Negative Factors
Margin compression
Material margin erosion to ~0.5% net and ~3.3% EBIT (TTM) versus prior years materially reduces internal profitability. Sustained weak margins impair ROE, limit reinvestment capacity and heighten reliance on pricing recovery and cost actions to restore durable earnings power.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained operating cash flow (~€1.02B TTM) and positive free cash flow (~€0.40B TTM) provide durable internal funding for capex, dividends and debt servicing. Reliable cash generation supports financing of PVDF/HPP projects and cushions earnings volatility over the medium term.
Read all positive factors
Arkema SA (ARKAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.45B
Dividend Yield7.04%
Average Volume (3M)520.00
Price to Earnings (P/E)40.5
Beta (1Y)0.77
Revenue Growth-0.17%
EPS Growth-86.70%
CountryUS
Employees21,150
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.24
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 Cap1.45
Enterprise Value/Revenue0.89
Enterprise Value/Gross Profit2.37
Enterprise Value/Ebitda7.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.72
Revenue Forecast (FY)$10.77B
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call portrayed a resilient operational performance amid a challenging macro and geopolitical backdrop: management delivered stable volumes, Specialty Materials growth (notably strong in batteries and PIAM), sequential EBITDA improvement and progress on strategic capacity projects while maintaining disciplined CapEx and working capital control. Offsetting these positives were a material year-on-year revenue decline (-8.4%), Y/Y EBITDA pressure partly from currency (~EUR 20m) and continued demand softness in Europe and the U.S., together with rising input-cost inflation and supply-chain uncertainty from the Middle East. The company reiterated its 2026 slight-EBITDA-growth-at-constant-FX target and is pursuing pricing and cost measures to mitigate headwinds.Positive Updates
Stable Volumes and Specialty Materials Growth
Group volumes were broadly stable year-on-year in Q1 2026; Specialty Materials volumes increased by 1.5% with all Specialty segments up and a strong pick-up in March.
Negative Updates
Revenue Decline Year-on-Year
Q1 revenues were EUR 2.2 billion, down 8.4% year-on-year, impacted by a negative currency effect of -5.1% and a price effect of -3% due to a lower selling price environment.
Read all updates
Q1-2026 Updates
Positive
Negative
Stable Volumes and Specialty Materials Growth
Group volumes were broadly stable year-on-year in Q1 2026; Specialty Materials volumes increased by 1.5% with all Specialty segments up and a strong pick-up in March.
Read all positive updates
Company Guidance
Arkema confirmed a full‑year 2026 target of slight EBITDA growth at constant exchange rates, while expecting Q2 to be sequentially stronger (notably from High‑Performance Polymers) and with acrylic spreads likely to improve in Q2; Q1 revenues were €2.2bn (‑8.4% YoY, ‑5.1% FX, price effect ‑3%), volumes broadly stable YoY with Specialty Materials volumes +1.5% and high‑growth pockets +15%, and Q1 EBITDA was €283m (≈€20m negative FX), up 14% vs Q4’25 but down YoY, with segment EBITDA: Advanced Materials €139m, Adhesive Solutions €89m, Coating Solutions €51m (margin +100bps to 13%), Primary Materials €33m, and PIAM EBITDA +30%+ YoY in local currency with a 35% margin; Q1 recurring cash flow was ‑€95m, working capital ratio 16.3%, capex €75m in Q1 (full‑year capex guidance €600m), net debt plus hybrids €3.3bn (net debt / LTM EBITDA 2.8x), depreciation & amortization €165m (recurring EBIT €118m, REBIT margin 5.4%), non‑recurring items €45m, financial expenses ‑€29m, and adjusted net income €65m (€0.86/sh); growth projects include US PVDF start‑up mid‑year (+15% regional capacity) and a China PVDF +20% expansion targeted for 2028.Arkema SA Financial Statement Overview
Summary
Income Statement
47
Neutral
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.88B | 8.71B | 9.54B | 9.51B | 11.55B | 9.52B |
| Gross Profit | 3.34B | 1.55B | 1.94B | 1.96B | 2.58B | 2.14B |
| EBITDA | 1.12B | 1.20B | 1.31B | 1.33B | 1.81B | 1.87B |
| Net Income | 42.39M | 60.51M | 354.00M | 418.00M | 965.00M | 1.31B |
Balance Sheet | ||||||
| Total Assets | 14.24B | 14.24B | 15.21B | 14.52B | 13.51B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.73B | 2.20B | 2.01B | 2.04B | 1.59B | 2.29B |
| Total Debt | 5.08B | 5.36B | 4.55B | 4.28B | 3.26B | 2.76B |
| Total Liabilities | 7.89B | 8.01B | 7.45B | 7.06B | 6.17B | 5.95B |
| Stockholders Equity | 6.16B | 6.04B | 7.53B | 7.20B | 7.30B | 6.30B |
Cash Flow | ||||||
| Free Cash Flow | 396.46M | 323.70M | 353.00M | 593.00M | 766.00M | 152.00M |
| Operating Cash Flow | 1.02B | 934.60M | 1.12B | 1.27B | 1.50B | 915.00M |
| Investing Cash Flow | -602.86M | -591.69M | -940.00M | -1.35B | -2.34B | 473.00M |
| Financing Cash Flow | 187.55M | -251.66M | -207.00M | 516.00M | 168.00M | -652.00M |
Arkema SA Technical Analysis
Neutral
61.68
Price Trends
69.24
Positive
67.22
Positive
65.52
Positive
Market Momentum
0.71
Positive
43.08
Neutral
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKAY, the sentiment is Neutral. The current price of 61.68 is below the 20-day moving average (MA) of 73.17, below the 50-day MA of 69.24, and below the 200-day MA of 65.52, indicating a neutral trend. The MACD of 0.71 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $18.82B | 27.47 | 5.90% | 2.41% | -5.60% | ― | |
65 Neutral | $8.11B | 20.33 | 6.77% | 5.33% | -7.41% | -56.10% | |
65 Neutral | $23.11B | 15.65 | 31.80% | 2.71% | -3.94% | 18.25% | |
64 Neutral | $12.39B | 70.63 | 21.80% | 1.96% | 5.68% | 3.81% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $23.93B | 51.88 | -7.44% | 12.78% | -21.87% | -176.90% | |
60 Neutral | $5.45B | 40.49 | 0.62% | 7.04% | -0.17% | -86.70% |
* Basic Materials Sector Average
ARKAY
Arkema SA
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RPM
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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.