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Arkema stocks: is it the right time to invest?

Reading Time : 1 minut(s) - | Published on 28-12-2023 14:57 

Arkema: major player in the chemical industry

Arkema is a company listed on Euronext Paris. Present in 55 countries and employing approximately 55,000 people, it specializes in the chemical industry. It markets compounds for coatings such as acrylics, resins and additives, among others.

It would be too lengthy to go through all the compounds marketed by Arkema. But without even knowing it, your daily life is probably surrounded by objects that have incorporated elements supplied by Arkema. The multinational's products are used in the composition of numerous elements of everyday life:

- the paint on your walls,
- your adhesives,
- your cosmetics,
- baby diapers,
- the silicone seals in your bathroom,
- the product that gives your kitchen gas its smell,
- parts of your car's engine,
- fuel additives,
- electronic compounds,
- lithium batteries...
The company proudly claims to be "one of the world's leading producers of fluorinated chemicals". This family of fluorinated gases includes, for example, refrigerants used in refrigerators, air conditioning systems, certain insulating foams or aerosols. The company is notably known under the brand "Florane".
All these products, coupled with a significant innovation policy, allow Arkema to be present in numerous markets:

- agriculture,
- construction,
- automobiles,
- electronics,
- energy...

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Stock market: what to think about ARKEMA shares

Arkema boasts a market capitalization of over 7 billion euros.
After the historic drop that financial markets experienced in 2020, Arkema's stock price rose until January 2022 (highest around 134 euros). It then fell until September of the same year (lowest at 71.2 euros), before rebounding.

Between January and September 2023, the stock's value fluctuated between 79.42 euros (lowest on June 20) to 99.22 euros (highest on July 28). Arkema's stock is in decline, notably weighed down by the publication of a net current profit divided by 2 (-53.8%) for the 2nd quarter 2023 and a drop in its margin. The decrease in sales volume has caused a 23% drop in turnover.

Nonetheless, analysts are relatively positive in the short term, while remaining more neutral about medium-term prospects. Despite the mixed results of the second quarter, the expected dividend remains consistent with the envisaged profit. Opinions tend to favor buying.

ARKEMA shares are eligible for the PEA.