Arkema S.A.
Arkema S.A. Fundamental Analysis
Arkema S.A. (ARKAY) shows weak financial fundamentals with a PE ratio of 64.53, profit margin of 0.70%, and ROE of 0.91%. The company generates $9.1B in annual revenue with weak year-over-year growth of 0.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ARKAY's fundamental strength across five key dimensions:
Efficiency Score
WeakARKAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateARKAY shows balanced valuation metrics.
Growth Score
WeakARKAY faces weak or negative growth trends.
Financial Health Score
ExcellentARKAY maintains a strong and stable balance sheet.
Profitability Score
ModerateARKAY maintains healthy but balanced margins.
Key Financial Metrics
Is ARKAY Expensive or Cheap?
P/E Ratio
ARKAY trades at 64.53 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ARKAY's PEG of -1.11 indicates potential undervaluation.
Price to Book
The market values Arkema S.A. at 0.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.81 times EBITDA. This is generally considered low.
How Well Does ARKAY Make Money?
Net Profit Margin
For every $100 in sales, Arkema S.A. keeps $0.70 as profit after all expenses.
Operating Margin
Core operations generate 3.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.91 in profit for every $100 of shareholder equity.
ROA
Arkema S.A. generates $0.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arkema S.A. produces operating cash flow of $1.03B, showing steady but balanced cash generation.
Free Cash Flow
Arkema S.A. produces free cash flow of $368.15M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.87 in free cash annually.
FCF Yield
ARKAY converts 8.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How ARKAY Stacks Against Its Sector Peers
| Metric | ARKAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.53 | 24.91 | Worse (Expensive) |
| ROE | 0.91% | 840.00% | Weak |
| Net Margin | 0.70% | -105381.00% (disorted) | Weak |
| Debt/Equity | 0.89 | 0.55 | Weak (High Leverage) |
| Current Ratio | 2.13 | 4.94 | Strong Liquidity |
| ROA | 0.45% | -4176.00% (disorted) | Weak |
ARKAY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arkema S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.13%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-33.67%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-12.26%
Industry Style: Cyclical, Commodity, Value
Declining