Arkema (AKE) AI Stock Analysis

• Market Cap: €4.92B
• Dividend Yield: 5.54%
• Average Volume (3M): 244.43K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.23
• Revenue Growth: 2.71%
• EPS Growth: -10.61%
• Country: FR
• Employees: 21,150
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 1.30
• Shares Outstanding: 76,060,830
• 10 Day Avg. Volume: 202,865
• 30 Day Avg. Volume: 244,428
• PEG Ratio: -1.98
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.62
• 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: €76.18
• Price Target Upside: 17.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: €70.00 ▲(7.69%Upside)

Arkema's stock score of 70.7 reflects a balanced performance with strengths in valuation due to a high dividend yield and fair P/E ratio. Financial performance shows resilience despite challenges in profitability and cash flow. Technical analysis indicates stable market momentum without strong bullish or bearish signals.

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 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 production and sale of specialty chemicals and advanced materials across its three main business segments. The High Performance Materials segment offers high-value-added products like adhesives and technical polymers, which are in high demand across various industries for their durability and performance. The Industrial Specialties segment comprises products such as fluorochemicals and thiochemicals, contributing to significant revenue through their applications in sectors like refrigeration and oil and gas. The Coating Solutions segment focuses on products for paints and coatings, serving the construction and decorative industries. Additionally, Arkema's strategic partnerships and acquisitions expand its market reach and technological capabilities, enhancing its revenue streams. The company's emphasis on sustainability and innovation also helps capture market share in emerging sectors, further boosting its financial performance.

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: Positive
• Last Price: 65.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 65 is above the 20-day moving average (MA) of 63.55, above the 50-day MA of 62.58, and below the 200-day MA of 68.99, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 56.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:AKE.

Arkema Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKE	71 Outperform	€4.92B	15.56	4.87%	5.54%	2.71%	-10.61%
Sector *	44 Neutral	AU$1.51B	-6.04	-41.37%	3.90%	-3.45%	-43.04%
0NWF	―	€99.42B	30.03	12.92%	1.92%	―	―
0MGV	―	€1.60B	113.58	0.92%	2.69%	―	―
0NPX	―	€2.20B	49.79	-2.97%	10.82%	―	―
0NR2	―	€4.00B	8.63	19.37%	8.95%	―	―
CBE	73 Outperform	€1.55B	16.05		1.45%	11.99%	20.45%