Arkema (AKE) AI Stock Analysis

• Market Cap: €4.83B
• Dividend Yield: 5.65%
• Average Volume (3M): 220.57K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 1.18
• Revenue Growth: 2.71%
• EPS Growth: -10.61%
• Country: FR
• Employees: 21,150
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Chemicals - Specialty
• EPS (TTM): 1.30
• Shares Outstanding: 76,060,830
• 10 Day Avg. Volume: 295,978
• 30 Day Avg. Volume: 220,572
• PEG Ratio: -0.25
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.11
• 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: €79.55
• Price Target Upside: 20.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: €67.00 ▲(1.52%Upside)

Arkema's overall stock score reflects stable financial performance with notable challenges in profitability and cash flow. Technical indicators are neutral with potential bearish trends, while valuation is attractive with a high dividend yield. The absence of earnings call insights leaves some information gap in assessing future prospects.

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 makes money primarily through the sale of its specialty chemicals and advanced materials across its three main business segments. The High Performance Materials segment generates revenue through products like adhesives, technical polymers, and performance additives, which are used in high-growth industries such as automotive and electronics. The Industrial Specialties segment includes fluorogases, PMMA (acrylic glass), and hydrogen peroxide, contributing to revenue through applications in refrigeration, construction, and healthcare sectors. The Coating Solutions segment covers products like coating resins and additives, serving the paints, coatings, and adhesives markets. Arkema's earnings are further supported by strategic partnerships, research and development investments, and its focus on sustainable and innovative solutions that meet evolving customer demands.

Arkema Financial Statement Overview

Summary

Arkema's financial performance shows stability in 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. Improving cost efficiency and cash flow management will be crucial for future growth.

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: 66.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 66 is above the 20-day moving average (MA) of 61.34, above the 50-day MA of 62.36, and below the 200-day MA of 70.25, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.34 is Negative, 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
AKE	67 Neutral	€4.83B	15.26	4.87%	5.65%	2.71%	-10.61%
Sector *	44 Neutral	C$967.20M	-6.69	-13.35%	2.72%	17.55%	-32.18%
0NWF		€101.44B	30.69	12.92%	1.63%	―	―
0MGV		€1.34B	95.77	0.92%	3.27%	―	―
0NPX		€2.37B	49.79	-2.97%	5.18%	―	―
0NR2		€3.64B	7.89	19.37%	8.20%	―	―
CBE	76 Outperform	€1.57B	16.49		1.37%	11.99%	20.45%