Arkema (AKE) AI Stock Analysis

• Market Cap: €3.90B
• Dividend Yield: 6.99%
• Average Volume (3M): 234.51K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 1.30
• Revenue Growth: -2.71%
• EPS Growth: -57.75%
• Country: FR
• 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: €59.91
• Price Target Upside: 17.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €54.00 ▲(5.78% 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 performance is challenged by declining revenue and profitability margins, though it maintains operational efficiency and a stable balance sheet. The cash flow metrics are declining, indicating potential liquidity issues.

Income Statement

Arkema's income statement shows a declining trend in revenue and profitability margins over the TTM period. The gross profit margin and net profit margin have decreased compared to previous years, indicating pressure on profitability. Revenue growth has been negative, reflecting challenges in maintaining sales momentum. However, the company maintains a positive EBIT and EBITDA margin, suggesting operational efficiency despite the downturn.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity has decreased, suggesting reduced profitability for shareholders. The equity ratio remains healthy, showing a strong capital structure. Overall, the balance sheet suggests financial stability but highlights the need for improved profitability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could impact future investments and debt servicing. The operating cash flow to net income ratio is moderate, indicating adequate cash generation relative to earnings. However, the free cash flow to net income ratio has decreased, pointing to potential liquidity challenges. The company needs to focus on improving cash flow generation to support its financial commitments.

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: 51.05
• 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 Negative. The current price of 51.05 is below the 20-day moving average (MA) of 51.84, below the 50-day MA of 51.54, and below the 200-day MA of 59.16, indicating a bearish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 49.94 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	€1.74B	15.79	―	1.36%	10.55%	13.50%
VK	66 Neutral	€3.63B	10.13	16.47%	9.68%	-15.12%	-10.10%
AI	66 Neutral	€92.37B	26.89	13.92%	2.06%	1.46%	12.62%
AKE	62 Neutral	€3.90B	26.96	2.27%	6.99%	-2.71%	-57.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NK	56 Neutral	€1.95B	-11.71	-5.29%	6.28%	-7.71%	-451.19%
ERA	46 Neutral	€1.51B	-15.72	-7.36%	2.83%	-6.91%	-222.35%