Arkema SA AI Stock Analysis
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Arkema SA (ARKAY) AI Stock Analysis
Arkema SA
(Other OTC:ARKAY)
The overall score of 57 highlights a stark contrast between Arkema's solid operational execution and its underlying fundamental challenges. The most significant positive driver is the company's recent earnings resilience, demonstrating sales growth and firm guidance despite a tough macroeconomic environment. However, the score is heavily weighed down by severe net income compression, which has pushed the P/E ratio to extreme levels, alongside deteriorating cash flows and long-term technical resistance. While the 6.76% dividend yield and short-term momentum offer some appeal, the broader fundamental headwinds keep the overall rating constrained.
Arkema SA (ARKAY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $4.95B
- Dividend Yield
- 6.74%
- Average Volume (3M)
- 1,081
- Price to Earnings (P/E)
- 53.4
- Beta (1Y)
- 0.81
- Revenue Growth
- 3.38%
- EPS Growth
- -39.63%
- Country
- US
- Employees
- 20,648
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
Arkema SA Business Overview & Revenue Model
Company Description
Arkema SA engages in manufacturing and supplying chemical products. It operates through the following segments: Adhesive Solutions, Advanced Materials, Coating Solutions, Intermediates, and Corporate. The Adhesive Solutions segment supplies technolog...
How the Company Makes Money
Arkema makes money primarily by selling specialty chemicals and advanced materials to industrial customers under supply contracts and purchase orders, with revenue largely tied to shipment volumes and contract/market-based pricing. Key revenue stream...
Arkema SA Earnings Call Summary
The call was broadly positive. Arkema delivered 8.1% sales growth, 7% EBITDA growth, 23% adjusted EPS growth, strong Specialty Materials performance, cost savings and maintained full-year guidance despite weak demand, inflation, geopolitical pressures and low-cycle conditions in acrylics. The principal negatives were subdued European and construction demand, declines in Primary Materials and Performance Additives, elevated working-capital needs and leverage, and slower-than-normal project ramp-up.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Arkema remains confident in its ability to deliver full year guidance with EBITDA slightly higher than last year at constant currency; major projects are expected to contribute an additional EUR 50 million of EBITDA in 2026 compared with last year, while CapEx is expected to be below EUR 600 million for the full year. The company expects inflation to have an adverse impact of around EUR 150 million on working capital for the full year 2026, and expects a little bit better ratio by year-end for leverage. For next year, there was no further CapEx update, though something quite similar could be expected, while project contributions could be around EUR 50 million if there is a continuation of the macro, or EUR 60 million, EUR 70 million, EUR 80 million if the macro is better; compared to the end of '24, Arkema plans to add the EUR 400 million that it has defined.
Arkema SA Financial Statement Overview
Summary
Arkema faces a pronounced cyclical downturn with severe margin contraction and plummeting net income. While operating cash flow remains positive, it is significantly weakening, and return on equity has heavily deteriorated. However, the balance sheet provides some stability with manageable leverage.
Income Statement
35NegativeBalance Sheet
52NeutralCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.09B | 8.71B | 9.54B | 9.51B | 11.55B | 9.52B |
| Gross Profit | 1.60B | 1.55B | 1.94B | 1.96B | 2.58B | 2.14B |
| EBITDA | 1.22B | 1.20B | 1.31B | 1.41B | 1.97B | 2.54B |
| Net Income | 83.99M | 60.51M | 354.00M | 418.00M | 965.00M | 1.31B |
Balance Sheet | ||||||
| Total Assets | 14.40B | 14.24B | 15.21B | 14.52B | 13.51B | 12.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 2.20B | 2.01B | 2.04B | 1.59B | 2.29B |
| Total Debt | 5.13B | 5.36B | 4.55B | 4.28B | 3.26B | 2.76B |
| Total Liabilities | 7.92B | 8.01B | 7.45B | 7.06B | 6.17B | 5.95B |
| Stockholders Equity | 6.24B | 6.04B | 7.53B | 7.20B | 7.30B | 6.30B |
Cash Flow | ||||||
| Free Cash Flow | 298.43M | 323.70M | 353.00M | 593.00M | 766.00M | 152.00M |
| Operating Cash Flow | 837.41M | 934.60M | 1.12B | 1.27B | 1.50B | 915.00M |
| Investing Cash Flow | -542.81M | -591.69M | -940.00M | -1.35B | -2.34B | 473.00M |
| Financing Cash Flow | -719.95M | -251.66M | -207.00M | 516.00M | 168.00M | -652.00M |
Arkema SA Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKAY, the sentiment is Positive. The current price of 64.73 is above the 20-day moving average (MA) of 63.21, above the 50-day MA of 63.68, and below the 200-day MA of 66.00, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 64.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARKAY.
Arkema SA Peers Comparison
Overall Rating
AVNT70Outperform
FUL68Neutral
EMN65Neutral
ESI62Neutral
ASH61Neutral- ARKAY57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AVNT | 70Outperform | $4.10B | 22.67 | 7.52% | 2.46% | 5.24% | 58.61% |
| FUL | 68Neutral | $2.65B | 13.54 | 9.51% | 1.97% | 1.48% | 72.33% |
| EMN | 65Neutral | $7.44B | 11.47 | 10.63% | 5.17% | 0.40% | -6.58% |
| ESI | 62Neutral | $8.03B | 39.14 | 7.39% | 0.97% | 39.62% | -14.83% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| ASH | 61Neutral | $3.50B | 849.67 | 0.21% | 2.18% | 2.08% | ― |
| ARKAY | 57Neutral | $4.96B | 53.36 | 1.28% | 6.74% | 3.38% | -39.63% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ARKAY | Arkema S.A. | 64.73 | 9.44 | 17.08% | |
| ASH | Ashland Global Holdings, Inc. | 76.47 | 28.22 | 58.49% | |
| EMN | Eastman Chemical Company | 65.03 | 10.28 | 18.77% | |
| FUL | H.B. Fuller Company | 49.29 | -6.04 | -10.91% | |
| AVNT | Avient Corporation | 44.66 | 17.28 | 63.11% | |
| ESI | Element Solutions | 33.08 | 8.38 | 33.91% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 11, 2026