ARKEMA (AKE.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AKE - FR0010313833 - Common Stock
52.1 EUR
+0.1 (+0.19%)
We assign a fundamental rating of 4 out of 10 to AKE. AKE was compared to 71 industry peers in the Chemicals industry. AKE has an average financial health and profitability rating. AKE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- AKE had positive earnings in the past year.
- AKE had a positive operating cash flow in the past year.
- AKE had positive earnings in each of the past 5 years.
- Each year in the past 5 years AKE had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.89%, AKE perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
- AKE has a Return On Equity of 1.76%. This is comparable to the rest of the industry: AKE outperforms 52.17% of its industry peers.
- The Return On Invested Capital of AKE (2.77%) is comparable to the rest of the industry.
- AKE had an Average Return On Invested Capital over the past 3 years of 5.57%. This is in line with the industry average of 7.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | 1.76% | ||
| ROIC | 2.77% |
ROA(3y)4.01%
ROA(5y)5.07%
ROE(3y)7.69%
ROE(5y)9.89%
ROIC(3y)5.57%
ROIC(5y)5.74%
1.3 Margins
- AKE has a Profit Margin of 1.38%. This is comparable to the rest of the industry: AKE outperforms 52.17% of its industry peers.
- AKE's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 5.40%, AKE perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of AKE has declined.
- With a Gross Margin value of 18.68%, AKE is not doing good in the industry: 75.36% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of AKE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.4% | ||
| PM (TTM) | 1.38% | ||
| GM | 18.68% |
OM growth 3Y-14.88%
OM growth 5Y-6.39%
PM growth 3Y-36.12%
PM growth 5Y-8.82%
GM growth 3Y-3.36%
GM growth 5Y-1.36%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AKE is creating some value.
- The number of shares outstanding for AKE has been increased compared to 1 year ago.
- The number of shares outstanding for AKE has been reduced compared to 5 years ago.
- The debt/assets ratio for AKE is higher compared to a year ago.
2.2 Solvency
- AKE has an Altman-Z score of 1.81. This is not the best score and indicates that AKE is in the grey zone with still only limited risk for bankruptcy at the moment.
- AKE has a Altman-Z score of 1.81. This is in the lower half of the industry: AKE underperforms 69.57% of its industry peers.
- AKE has a debt to FCF ratio of 17.51. This is a negative value and a sign of low solvency as AKE would need 17.51 years to pay back of all of its debts.
- The Debt to FCF ratio of AKE (17.51) is comparable to the rest of the industry.
- AKE has a Debt/Equity ratio of 0.57. This is a neutral value indicating AKE is somewhat dependend on debt financing.
- AKE has a Debt to Equity ratio (0.57) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 17.51 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.54
WACC5.12%
2.3 Liquidity
- A Current Ratio of 3.07 indicates that AKE has no problem at all paying its short term obligations.
- AKE has a better Current ratio (3.07) than 85.51% of its industry peers.
- AKE has a Quick Ratio of 2.26. This indicates that AKE is financially healthy and has no problem in meeting its short term obligations.
- AKE has a better Quick ratio (2.26) than 88.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
- The earnings per share for AKE have decreased strongly by -38.40% in the last year.
- AKE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.10% yearly.
- The Revenue has decreased by -2.71% in the past year.
- Measured over the past years, AKE shows a small growth in Revenue. The Revenue has been growing by 1.78% on average per year.
EPS 1Y (TTM)-38.4%
EPS 3Y-11.49%
EPS 5Y0.1%
EPS Q2Q%-54.67%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.09%
Revenue growth 5Y1.78%
Sales Q2Q%-8.65%
3.2 Future
- Based on estimates for the next years, AKE will show a decrease in Earnings Per Share. The EPS will decrease by -2.41% on average per year.
- AKE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.
EPS Next Y-43.5%
EPS Next 2Y-21.77%
EPS Next 3Y-9.88%
EPS Next 5Y-2.41%
Revenue Next Year-5.26%
Revenue Next 2Y-2.07%
Revenue Next 3Y-0.23%
Revenue Next 5Y1.07%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.12, the valuation of AKE can be described as reasonable.
- 91.30% of the companies in the same industry are more expensive than AKE, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of AKE to the average of the S&P500 Index (27.21), we can say AKE is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.37, which indicates a very decent valuation of AKE.
- Based on the Price/Forward Earnings ratio, AKE is valued cheaply inside the industry as 94.20% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of AKE to the average of the S&P500 Index (25.98), we can say AKE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
- AKE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AKE is cheaper than 82.61% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AKE is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
- AKE's earnings are expected to decrease with -9.88% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)103.52
EPS Next 2Y-21.77%
EPS Next 3Y-9.88%
5. Dividend
5.1 Amount
- AKE has a Yearly Dividend Yield of 6.92%, which is a nice return.
- AKE's Dividend Yield is rather good when compared to the industry average which is at 2.45. AKE pays more dividend than 95.65% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, AKE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.92% |
5.2 History
- On average, the dividend of AKE grows each year by 6.86%, which is quite nice.
Dividend Growth(5Y)6.86%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- AKE pays out 214.17% of its income as dividend. This is not a sustainable payout ratio.
- AKE's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP214.17%
EPS Next 2Y-21.77%
EPS Next 3Y-9.88%
ARKEMA / AKE.PA FAQ
What is the fundamental rating for AKE stock?
ChartMill assigns a fundamental rating of 4 / 10 to AKE.PA.
Can you provide the valuation status for ARKEMA?
ChartMill assigns a valuation rating of 7 / 10 to ARKEMA (AKE.PA). This can be considered as Undervalued.
How profitable is ARKEMA (AKE.PA) stock?
ARKEMA (AKE.PA) has a profitability rating of 4 / 10.
Can you provide the financial health for AKE stock?
The financial health rating of ARKEMA (AKE.PA) is 5 / 10.
Is the dividend of ARKEMA sustainable?
The dividend rating of ARKEMA (AKE.PA) is 6 / 10 and the dividend payout ratio is 214.17%.