Arkema (AKE) AI Stock Analysis

• Market Cap: €3.82B
• Dividend Yield: 7.05%
• Average Volume (3M): 234.51K
• Price to Earnings (P/E): 62.5
• Beta (1Y): 1.43
• Revenue Growth: -2.71%
• EPS Growth: -57.75%
• Country: FR
• Employees: 21,150
• Sector: General
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): 0.44
• Shares Outstanding: 76,060,830
• 10 Day Avg. Volume: 237,321
• 30 Day Avg. Volume: 234,507
• PEG Ratio: -0.77
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 11.69
• 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: €58.14
• Price Target Upside: 14.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.74
• Revenue Forecast (FY): €9.00B

• Rating: 62 Neutral
• Price Target: €54.00 ▲(5.99% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back by weakened financial performance (compressed margins/returns and slightly declining revenue, with rising leverage), partly offset by resilient cash flow. Technicals are supportive with a clear uptrend and positive momentum. Valuation is balanced by a high P/E versus a strong dividend yield.

Positive Factors

Resilient cash generation

Strong operating cash flow near €1.0B and a materially improved free cash flow provide a durable internal funding source. Over 2–6 months this supports capex, R&D, dividends or debt servicing, cushioning the business while margins recover and enabling strategic investments.

Differentiated specialty portfolio

Arkema's focus on specialty polymers, additives and performance materials creates lasting competitive advantages: differentiated products, higher switching costs and long qualification cycles drive repeat B2B demand and support value-based pricing and more stable revenues over time.

Sizable equity buffer

A significant equity base relative to assets provides financial resilience and credit capacity. Even as leverage has risen, the equity cushion preserves access to capital and flexibility to fund strategic initiatives or absorb shocks without immediate solvency pressure.

Negative Factors

Compressed profitability

Very low net and EBIT margins materially reduce retained earnings and reinvestment capacity. Sustained margin compression undermines return generation, weakens ROE, and limits ability to fund innovation or dividend commitments, threatening long-term competitiveness if not reversed.

Rising leverage and low returns

Increasing leverage alongside very low ROE reduces financial flexibility and raises refinancing and interest-rate risk. With limited profitability, higher indebtedness could force spending trade-offs or equity issuance, constraining strategic options over the medium term.

Feedstock and energy exposure

Significant exposure to commodity intermediates ties earnings to volatile raw-material and energy prices. This structural cost exposure can swing margins and cash conversion across cycles, making multi-quarter planning and sustained margin improvement more difficult.

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 makes money primarily by manufacturing and selling specialty chemicals and advanced materials to industrial customers under long-term supply relationships and recurring purchasing cycles tied to customer production volumes. Its revenue model is largely B2B and volume- and price-driven, with earnings influenced by product mix (specialty materials typically carrying higher margins than commodity-like intermediates), capacity utilization, and the ability to pass through changes in raw-material and energy costs via pricing mechanisms where contracts and market conditions allow. Key revenue streams include: - Sales of specialty polymers and formulated materials: Arkema sells specialty resins and polymers used in coatings, adhesives and sealants, engineered plastics applications, and performance films. These products are often differentiated by performance attributes (e.g., durability, chemical resistance, adhesion, heat resistance), supporting value-based pricing and repeat sales to manufacturers and formulators. - Sales of additives and performance solutions: The company supplies additives that improve performance of coatings, plastics, lubricants, and other formulations. Revenue here is typically generated through ongoing supply to formulators and manufacturers that require consistent quality and regulatory-compliant inputs. - Sales of chemical intermediates: Arkema also sells selected chemical intermediates and downstream derivatives into industrial value chains. This stream tends to be more exposed to cyclical demand and feedstock/energy price volatility than specialty materials. Other factors contributing to earnings: - Global manufacturing and distribution: Arkema operates production sites and sells through direct sales and distribution channels, generating revenue across multiple geographies and end-markets to diversify demand. - Innovation and new product development: A portion of growth and pricing power can come from new grades, application development, and materials that enable customer performance or sustainability goals (e.g., lower-VOC coatings, lightweighting, durability), supporting premium pricing and higher-margin mix. - Long-term customer relationships and qualification cycles: In many applications (especially coatings, electronics, and industrial materials), product qualification and switching costs can create more stable demand once Arkema’s materials are designed into a customer’s formulation or manufacturing process. Significant partnerships or specific commercial arrangements: null

Arkema Financial Statement Overview

Summary

Earnings are under pressure with sharply lower TTM margins (net ~1.5%, EBIT ~2.3%) and slightly declining revenue (-1.8%). Balance sheet support remains (meaningful equity) but leverage has risen (debt-to-equity ~0.74) and ROE is low (~2.0%). Cash flow is a relative bright spot with strong operating cash flow (~€1.0B) and improved free cash flow (~€369M), partially offsetting weaker profitability.

Income Statement

Profitability has weakened meaningfully versus prior years: TTM (Trailing-Twelve-Months) net margin is ~1.5% and EBIT margin is ~2.3%, down sharply from 2022–2024 levels. Revenue is also slightly declining in TTM (Trailing-Twelve-Months) (-1.8%), suggesting a softer demand/pricing environment. Offsetting this, the business still generates solid gross profitability (~18.7% gross margin in TTM (Trailing-Twelve-Months)) and maintains positive EBITDA margin (~10.8%), but the earnings profile is currently under pressure.

Balance Sheet

Leverage is moderate but rising: debt-to-equity increased to ~0.74 in TTM (Trailing-Twelve-Months) from ~0.61 in 2024 and ~0.45 in 2022, indicating a less conservative capital structure. Equity remains sizable (~€6.0B) relative to total assets (~€14.2B), which provides balance sheet support. However, returns have compressed with low TTM (Trailing-Twelve-Months) return on equity (~2.0%), reflecting the current earnings downturn and reducing financial flexibility if weakness persists.

Cash Flow

Cash generation is relatively resilient: TTM (Trailing-Twelve-Months) operating cash flow is strong (~€1.0B) and free cash flow improved materially (up ~51% to ~€369M). That said, free cash flow remains modest versus revenue, and cash conversion looks mixed—free cash flow is low relative to net income in TTM (Trailing-Twelve-Months) (as provided), implying working-capital or capital-spend demands may be limiting how much profit turns into discretionary cash. Overall, cash flow is a relative bright spot versus earnings, but not consistently strong year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.07B	9.54B	9.51B	11.55B	9.52B
Gross Profit	1.61B	1.94B	1.96B	2.58B	2.14B
EBITDA	1.25B	1.31B	1.33B	1.82B	2.27B
Net Income	63.00M	354.00M	402.00M	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	337.00M	353.00M	622.00M	766.00M	152.00M
Operating Cash Flow	973.00M	1.12B	1.26B	1.50B	915.00M
Investing Cash Flow	-616.00M	-940.00M	-1.35B	-2.34B	473.00M
Financing Cash Flow	-262.00M	-207.00M	516.00M	168.00M	-652.00M

Arkema Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.95
• 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 50.95 is below the 20-day moving average (MA) of 56.58, below the 50-day MA of 55.93, and below the 200-day MA of 56.44, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 37.30 is Neutral, neither overbought nor oversold. The STOCH value of 47.36 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	€1.55B	6.97	―	1.35%	10.55%	13.50%
VK	73 Outperform	€4.70B	10.37	21.20%	9.68%	-15.12%	-10.10%
AI	72 Outperform	€96.67B	26.28	13.87%	2.06%	1.46%	12.62%
AKE	62 Neutral	€3.82B	62.51	2.27%	7.05%	-2.71%	-57.75%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
NK	47 Neutral	€1.75B	-4.95	-11.01%	6.28%	-7.71%	-451.19%
ERA	41 Neutral	€1.35B	-3.46	-7.36%	2.83%	-6.91%	-222.35%