Arkema SA
🇫🇷 AKE.PA · Paris · FR0010313833
Materials
EUR 58.10 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
70.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 58.10 ÷ 0.83 = 70.1
TTM period through: 2025-12-31
Forward P/E (estimated): 15.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 113.9
Yield (Fwd)
6.20%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 6.10%
Net Debt/EBITDA (TTM)
2.5x
Latest quarter: 12.8x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 12.8x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
434.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 431.8%
Cash Flow Payout (TTM): 27.9%
FCF Coverage (TTM): 1.24x
ROE
0.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
6.3x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
While Arkema operates as a major global specialty materials manufacturer with an attractive 6.10% yield supported by robust free cash flow, its cyclical nature presents a strategy mismatch for conservative dividend investors. The current earnings downturn and inflated P/E of 70.06 reflect temporary macroeconomic headwinds rather than permanent impairment, but the inherent volatility makes this unsuitable for defensive portfolios seeking high predictability. Not recommended for new positions, as better opportunities exist in more stable, essential service businesses.
Sector Context
Arkema is a global manufacturer of specialty materials and chemicals, producing products utilized across various industrial applications. Operating in the Materials sector means earnings are inherently cyclical and highly sensitive to global economic demand, differing significantly from the recession-resistant, predictable cash flows generated by regulated utilities or essential infrastructure preferred for conservative dividend investing.
Temporary Opportunity Identified
Cyclical downturn in key segments (acrylics and old-generation refrigerants), subdued global macroeconomic demand, and non-recurring restructuring costs compressing short-term earnings.
📊 Strategy Analysis
- • The attractive 6.10% dividend yield is highly secure from a cash perspective, with free cash flow covering the dividend comfortably at a 27.95% cash flow payout ratio.
- • Trading significantly below book value (P/B of 0.73) and at an EV/EBITDA of 6.29x, indicating the market has heavily discounted the current cyclical downturn.
- • The recent Q4 net loss and inflated TTM P/E of 70.06 are driven by temporary cyclical weakness in specific end markets and non-recurring restructuring charges rather than permanent business destruction.
⚠ What to Watch
- • Operating in the cyclical Materials sector creates a fundamental strategy mismatch, as it lacks the monopolistic pricing power and highly predictable cash flows preferred for long-term dividend stability.
- • Severe recent earnings deterioration has compressed net margins to 0.7% (down from a 5-year average of 6.2%) and inflated the TTM P/E to 70.06.
- • Leverage has trended upward over the past decade, with Net Debt/EBITDA rising to 2.53x from historical lows of 0.2x, reducing financial flexibility during the current macroeconomic slowdown.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.