Arkema (AKE) AI Stock Analysis

• Market Cap: €4.62B
• Dividend Yield: 5.9%
• Average Volume (3M): 201.57K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.28
• Revenue Growth: 0.19%
• EPS Growth: -37.62%
• Country: FR
• Employees: 21,150
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 1.56
• Shares Outstanding: 76,060,830
• 10 Day Avg. Volume: 177,361
• 30 Day Avg. Volume: 201,566
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €75.36
• Price Target Upside: 21.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: €65.00 ▲(4.92% Upside)

Arkema's overall stock score is primarily influenced by its solid financial performance, despite challenges in profitability and cash flow. The technical analysis indicates a bearish trend, which weighs on the score. However, the attractive dividend yield supports the valuation, providing a balanced outlook for investors.

Positive Factors

Earnings

The earnings trend at Performance Additives is up (+15% y/y in FY-24) and had a good start to 2025.

Price Target

Upside to Price Target (%) 25.8.

Negative Factors

Debt

Net debt increased y/y to €3.24bn (FY-23: €2.9bn) with net debt/EBITDA at 2.1x.

Demand

The company highlighted weak demand at the start of the year and ongoing uncertainties in acrylics.

Industry Performance

Lowering estimates on softer demand trends and weaker industry performance.

Arkema Business Overview & Revenue Model

Company Description

Arkema (AKE) is a global specialty chemicals and advanced materials company headquartered in France. It operates through three main segments: High Performance Materials, Industrial Specialties, and Coating Solutions. Arkema's core products include advanced polymers, adhesive solutions, and specialty chemicals that serve a diverse range of industries such as automotive, construction, electronics, and consumer goods. The company is committed to innovation and sustainability, focusing on developing solutions that address environmental challenges.

How the Company Makes Money

Arkema generates revenue primarily through the sale of its specialty chemicals and materials across various market sectors. The company has a diverse revenue model that includes direct sales to manufacturers and end-users, as well as partnerships with key players in the industries it serves. Significant revenue streams come from its High Performance Materials segment, which produces advanced materials used in high-growth applications like electric vehicles and renewable energy. Additionally, Arkema benefits from strategic collaborations and acquisitions that enhance its product offerings and market reach, contributing positively to its earnings.

Arkema Financial Statement Overview

Summary

Arkema's 2024 financial performance shows resilience with stable revenue but declining profitability and cash flow generation. The balance sheet remains solid with a strong equity base, though increased leverage and reduced return on equity pose challenges.

Income Statement

Arkema's income statement reflects moderate stability with a slight revenue growth of 0.31% in 2024. The gross profit margin is stable at approximately 20.3% for 2024, however, the net profit margin decreased to 3.71%, indicating reduced profitability. The EBIT and EBITDA margins have slightly decreased, suggesting a need for cost management improvements.

Balance Sheet

The balance sheet exhibits a healthy equity ratio of 49.5%, implying a strong equity base. The debt-to-equity ratio increased to 0.60, indicating increased leverage. Return on equity declined to 4.70%, showing reduced efficiency in generating returns from equity.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow by 43.24% in 2024, raising concerns about cash generation. The operating cash flow to net income ratio is robust at 3.17, but the free cash flow to net income ratio dropped to 1.00, reflecting less cash available for expansion or shareholder returns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.54B	9.51B	11.55B	9.52B	7.88B
Gross Profit	1.94B	1.96B	2.58B	2.14B	1.55B
EBITDA	1.31B	1.33B	1.82B	2.27B	1.19B
Net Income	354.00M	402.00M	965.00M	1.31B	332.00M
Balance Sheet
Total Assets	15.21B	14.52B	13.51B	12.30B	10.71B
Cash, Cash Equivalents and Short-Term Investments	2.01B	2.04B	1.59B	2.29B	1.63B
Total Debt	4.55B	4.28B	3.26B	2.76B	2.80B
Total Liabilities	7.45B	7.06B	6.17B	5.95B	5.48B
Stockholders Equity	7.53B	7.20B	7.30B	6.30B	5.19B
Cash Flow
Free Cash Flow	353.00M	622.00M	766.00M	152.00M	510.00M
Operating Cash Flow	1.12B	1.26B	1.50B	915.00M	1.11B
Investing Cash Flow	-940.00M	-1.35B	-2.34B	473.00M	-458.00M
Financing Cash Flow	-207.00M	516.00M	168.00M	-652.00M	-535.00M

Arkema Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.95
• 50DMA: Negative
• 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 FR:AKE, the sentiment is Neutral. The current price of 61.95 is above the 20-day moving average (MA) of 61.64, below the 50-day MA of 62.04, and below the 200-day MA of 67.54, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:AKE.

Arkema Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBE	72 Outperform	€1.61B	16.96		1.37%	11.99%	20.45%
AI	69 Neutral	€103.11B	30.05	13.92%	1.83%	1.46%	12.62%
AKE	64 Neutral	€4.62B	21.34	3.56%	5.90%	0.19%	-37.62%
VK	64 Neutral	€3.71B	10.37	16.47%	9.51%	-15.12%	-10.10%
Sector *	57 Neutral	€6.92B	6.14	3.91%	3.65%	28.24%	-62.06%
NK	47 Neutral	€1.85B	50.11	-5.29%	6.54%	-7.71%	-451.19%
ERA	45 Neutral	€1.46B	108.77	-7.36%	2.87%	-6.91%	-222.35%