Arkema (AKE) AI Stock Analysis

• Market Cap: €3.84B
• Dividend Yield: 7.05%
• Average Volume (3M): 234.51K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.32
• Revenue Growth: -2.71%
• EPS Growth: -57.75%
• Country: US
• Employees: 21,150
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.02
• Shares Outstanding: 76,060,830
• 10 Day Avg. Volume: 237,321
• 30 Day Avg. Volume: 234,507
• PEG Ratio: -0.95
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 15.60
• 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: €56.90
• Price Target Upside: 11.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €54.00 ▲(5.37% Upside)

Arkema's overall stock score is driven by a stable financial position and strong cash flow generation, which are offset by weak technical indicators and a high P/E ratio. The attractive dividend yield provides some support, but challenges in revenue growth and profitability remain significant concerns.

Positive Factors

Cash Generation

Improved cash generation capabilities provide Arkema with the flexibility to invest in strategic initiatives and sustain operations.

Balance Sheet Health

A stable balance sheet with moderate leverage supports Arkema's financial stability and ability to manage economic fluctuations.

Operational Efficiency

Consistent operational efficiency, as indicated by a stable EBITDA margin, helps Arkema manage costs and sustain profitability.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates challenges in maintaining sales momentum, which could impact long-term market competitiveness.

Profitability Pressure

Decreased profitability margins suggest challenges in cost management and pricing power, potentially affecting future earnings.

Return on Equity Decline

A declining return on equity indicates reduced efficiency in generating returns from shareholders' investments, impacting investor confidence.

Arkema 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 construction, renovation of buildings, DIY, durable goods, and packaging and non-woven applications; and supplies technologies used in building activities for businesses and individuals, including sealants, tiles, flooring adhesives and waterproofing systems, and technologies used in industry, which include automotive, textiles, glazing, flexible and rigid packaging, and hygiene markets. The company also offers advanced materials consisting of specialty polyamides and polyvinylidene fluoride; and performance additives, such as specialty surfactants and molecular sieves, organic peroxides, thiochemicals, and hydrogen peroxide for use in automotive and transportation, oil and gas, renewable energies, consumer goods, electronics, construction, coatings, animal nutrition, and water treatment sectors. In addition, it provides coating solutions comprising EU/US acrylics and coating resins; sartomer photocure resins and coatex rheology additives; decorative paints, industrial coatings, and adhesives; and solutions for applications in the paper, superabsorbents, water treatment and oil and gas extraction, and 3D printing and electronics industries. Further, the company offers fluorogases and acrylics; and industrial intermediate chemicals used in construction, refrigeration and air conditioning, automotive, coatings, and water treatment sectors. Arkema S.A. was incorporated in 2003 and is headquartered in Colombes, France.

How the Company Makes Money

Arkema generates revenue through the sale of specialty chemicals and advanced materials across its three business segments. The High Performance Materials segment, which includes products such as thermoplastics and resins, contributes significantly to revenue, driven by demand in automotive and electronics industries. The Industrial Specialties segment focuses on products such as thiochemicals and fluorochemicals, catering to various markets including oil and gas, while the Coating Solutions segment offers coatings and adhesives, primarily serving the construction and industrial markets. Additionally, Arkema benefits from strategic partnerships and collaborations that enhance its product offerings and market reach, along with ongoing investments in research and development to innovate and create value-added products. These factors collectively contribute to the company's robust revenue generation.

Arkema Financial Statement Overview

Summary

Arkema's financial statements reflect a mixed performance with challenges in revenue growth and profitability, yet maintaining operational efficiency and a stable financial position. The balance sheet shows moderate leverage and a solid equity base, while cash flow generation has improved, providing a cushion for future investments.

Income Statement

Arkema's income statement shows a decline in revenue growth with a negative rate of -2.19% TTM, indicating challenges in maintaining sales momentum. The gross profit margin has decreased slightly from 20.31% in 2024 to 19.02% TTM, reflecting pressure on cost management. Net profit margin also declined to 2.39% TTM from 3.71% in 2024, suggesting reduced profitability. However, the company maintains a stable EBITDA margin of 11.65% TTM, which is a positive sign of operational efficiency.

Balance Sheet

Arkema's balance sheet is relatively stable with a debt-to-equity ratio of 0.52 TTM, showing moderate leverage. The equity ratio stands at 50.52% TTM, indicating a solid equity base. However, the return on equity has decreased to 3.16% TTM from 4.70% in 2024, pointing to reduced returns on shareholders' investments. The company has managed to maintain a healthy balance between debt and equity, which is crucial for financial stability.

Cash Flow

The cash flow statement reveals a positive free cash flow growth rate of 15.64% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.62 TTM, suggesting efficient conversion of earnings into cash. However, the free cash flow to net income ratio has decreased to 0.21 TTM from 0.31 in 2024, which may indicate challenges in maintaining free cash flow relative to net income. Overall, the cash flow position remains strong, supporting operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.24B	9.54B	9.51B	11.55B	9.52B	7.88B
Gross Profit	3.51B	1.94B	1.96B	2.58B	2.14B	1.55B
EBITDA	1.00B	1.31B	1.33B	1.82B	2.27B	1.19B
Net Income	143.00M	354.00M	402.00M	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	1.95B	2.01B	2.04B	1.59B	2.29B	1.63B
Total Debt	5.36B	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	244.00M	353.00M	622.00M	766.00M	152.00M	510.00M
Operating Cash Flow	980.00M	1.12B	1.26B	1.50B	915.00M	1.11B
Investing Cash Flow	-851.00M	-940.00M	-1.35B	-2.34B	473.00M	-458.00M
Financing Cash Flow	-214.00M	-207.00M	516.00M	168.00M	-652.00M	-535.00M

Arkema Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 51.25 is below the 20-day moving average (MA) of 51.75, below the 50-day MA of 51.60, and below the 200-day MA of 57.32, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:AKE.

Arkema Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBE	74 Outperform	€1.75B	16.26	―	1.35%	10.55%	13.50%
VK	66 Neutral	€4.13B	11.52	16.47%	9.68%	-15.12%	-10.10%
AI	66 Neutral	€90.73B	26.41	13.92%	2.06%	1.46%	12.62%
AKE	62 Neutral	€3.84B	26.78	2.27%	7.05%	-2.71%	-57.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ERA	56 Neutral	€2.25B	-23.22	-7.36%	2.83%	-6.91%	-222.35%
NK	56 Neutral	€2.24B	-13.30	-5.29%	6.28%	-7.71%	-451.19%