Arkema SA (ARKAY) AI Stock Analysis

• Market Cap: $4.62B
• Dividend Yield: 6.84%
• Average Volume (3M): 1.05K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.89
• Revenue Growth: 0.85%
• EPS Growth: -36.94%
• Country: US
• Employees: 21,150
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.78
• Shares Outstanding: 76,060,830
• 10 Day Avg. Volume: 1,534
• 30 Day Avg. Volume: 1,055
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 5.56
• Enterprise Value/Ebitda: 9.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $66.00 ▲(8.16% Upside)

Arkema's overall stock score reflects a mix of challenges and opportunities. The most significant factor is the company's financial performance, which shows declining revenue growth and profitability margins. Technical analysis indicates a bearish trend, while valuation metrics are favorable with a strong dividend yield. The earnings call provided some positive insights into cost-cutting and future projects, but also highlighted ongoing challenges.

Arkema SA Business Overview & Revenue Model

Company Description

Arkema SA (ARKAY) is a global leader in specialty chemicals and advanced materials, headquartered in France. The company operates through three main segments: High Performance Materials, Industrial Specialties, and Coating Solutions. Arkema's core products include polymers, additives, and coatings that cater to a diverse range of industries, including automotive, construction, electronics, and healthcare. With a strong emphasis on innovation and sustainability, Arkema is committed to developing high-performance solutions that meet the evolving needs of its customers while minimizing environmental impact.

How the Company Makes Money

Arkema generates revenue primarily through the sale of its specialty chemicals and materials across various industries. The company has established key revenue streams through its three main segments, with High Performance Materials being the largest contributor, driven by demand for advanced polymers and composites. Industrial Specialties and Coating Solutions also play significant roles, with products that include adhesives, sealants, and specialty coatings. Additionally, Arkema engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, which further contributes to its earnings. The company's focus on innovation allows it to command premium pricing for its specialized products, thereby increasing profitability.

Arkema SA Financial Statement Overview

Summary

Arkema SA faces challenges with declining revenue growth and profitability margins. The balance sheet remains stable with a reasonable debt level, but cash flow constraints could pose risks. The company needs to focus on improving revenue growth and managing costs to enhance profitability and cash flow generation.

Income Statement

Arkema SA's income statement shows a decline in revenue growth with a negative trend in the TTM period. The gross profit margin has slightly decreased over time, indicating pressure on cost management. Net profit margin has also decreased, reflecting challenges in maintaining profitability. However, the company maintains a stable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has decreased over the years, showing a decline in profitability relative to shareholder equity. However, the equity ratio remains strong, suggesting financial stability and a solid asset base.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could impact future investments and dividend payouts. The operating cash flow to net income ratio indicates that cash generation from operations is healthy, but the free cash flow to net income ratio has decreased, highlighting potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.44B	9.54B	9.51B	11.55B	9.52B	7.88B
Gross Profit	1.80B	1.94B	1.96B	2.58B	2.14B	1.55B
EBITDA	1.10B	1.31B	1.33B	1.97B	1.87B	1.22B
Net Income	226.00M	354.00M	418.00M	965.00M	1.31B	332.00M
Balance Sheet
Total Assets	13.92B	15.21B	14.52B	13.51B	12.30B	10.71B
Cash, Cash Equivalents and Short-Term Investments	1.31B	2.01B	2.04B	1.59B	2.29B	1.63B
Total Debt	3.79B	4.55B	4.28B	3.26B	2.76B	2.80B
Total Liabilities	6.47B	7.45B	7.06B	6.17B	5.95B	5.48B
Stockholders Equity	7.23B	7.53B	7.20B	7.30B	6.30B	5.19B
Cash Flow
Free Cash Flow	222.00M	353.00M	593.00M	766.00M	152.00M	510.00M
Operating Cash Flow	1.02B	1.12B	1.27B	1.50B	915.00M	1.11B
Investing Cash Flow	-900.00M	-940.00M	-1.35B	-2.34B	473.00M	-458.00M
Financing Cash Flow	-964.00M	-207.00M	516.00M	168.00M	-652.00M	-535.00M

Arkema SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.02
• 50DMA: Negative
• 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 ARKAY, the sentiment is Neutral. The current price of 61.02 is above the 20-day moving average (MA) of 60.91, below the 50-day MA of 65.95, and below the 200-day MA of 72.23, indicating a neutral trend. The MACD of -1.38 indicates Negative momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 100.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARKAY.

Arkema SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	70 Neutral	$7.03B	8.86	14.52%	5.30%	1.60%	-3.97%
RPM	69 Neutral	$14.33B	20.97	24.05%	1.86%	3.09%	12.25%
ARKAY	66 Neutral	$4.62B	19.57	3.48%	6.84%	0.85%	-36.94%
PPG	63 Neutral	$23.06B	18.35	16.88%	2.66%	-10.59%	-7.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IFF	50 Neutral	$16.86B	-42.65	-2.74%	2.43%	-0.07%	83.36%
LYB	48 Neutral	$15.06B	61.41	1.08%	11.39%	-14.12%	-89.22%

Arkema SA Corporate Events

Arkema S.A. Earnings Call: Resilience Amid Challenges

The recent earnings call for Arkema S.A. painted a picture of resilience amid a challenging macroeconomic backdrop. Despite facing headwinds from currency fluctuations and a decline in the Coating Solutions segment, the company showcased its strength in cash generation and growth in Advanced Materials. The Adhesive Solutions segment also demonstrated robust performance, underscoring Arkema’s strategic focus and operational efficiency.

Arkema S.A. Reports Decline in H1 2025 Earnings

Arkema S.A., a leading player in the specialty chemicals and advanced materials industry, is known for its innovative solutions across various sectors, including adhesives, advanced materials, and coating solutions. In its latest earnings report, Arkema reported a slight decline in sales for the first half of 2025, with sales totaling €4,776 million, a 2.1% decrease compared to the same period in 2024. The company faced challenges such as unfavorable currency effects and weak demand in key markets, particularly in Europe and North America. Despite these challenges, Arkema continued to focus on strategic growth projects, including the expansion of its PVDF production capacity in the U.S. and a new biomethane supply agreement in France. Financially, Arkema’s EBITDA fell to €693 million, down from €801 million in the previous year, with an EBITDA margin of 14.5%. The company’s net income also saw a significant drop to €97 million, a 57.6% decrease from the first half of 2024. The decline was attributed to lower sales and increased operational costs. Looking ahead, Arkema remains focused on cost-cutting measures and strategic investments in high-value projects, aiming to achieve an EBITDA of between €1.3 billion and €1.4 billion for the full year 2025. The company is also committed to advancing its innovation and sustainability initiatives to strengthen its market position and resilience.