Arkema (ENXTPA:AKE): Valuation Insights After New Sustainability Milestones in Italy and France

Arkema (ENXTPA:AKE) recently announced two new milestones in its sustainability strategy. Its Boretto site in Italy earned ISCC PLUS certification, and a major modernization and decarbonization project was completed in Lacq/Mourenx, France.

See our latest analysis for Arkema.

Despite these ambitious sustainability initiatives, Arkema's share price has been under considerable pressure, closing recently at €51.7. The year-to-date share price return stands at -27.79%, while total shareholder return for the past twelve months is -31.91%. This signals that the market remains cautious, even as the company executes on its long-term decarbonization roadmap.

If Arkema’s green push has you curious about other companies making big moves, it could be the right moment to discover fast growing stocks with high insider ownership

With shares trading well below analyst targets, investors may be wondering if Arkema is now undervalued. Is there a hidden buying opportunity, or has the market already accounted for the company's future growth prospects?

Most Popular Narrative: 26.8% Undervalued

Arkema’s most widely followed narrative suggests its fair value sits well above the current share price, pointing to significant upside potential if consensus analyst assumptions prove accurate. This large discount highlights where sentiment and forecasts sharply diverge.

Significant investments in new production capacity, including the Singapore biobased polyamide plant, the U.S. PVDF expansion, and additives facilities targeting refining and biofuel markets, position Arkema to capture accelerated demand growth from the shift to renewable energy, electric mobility, and energy storage. These factors are expected to drive topline revenue growth and margin improvement as these assets ramp up.

Read the complete narrative.

Wondering how long-term innovation turns into value? There is a key set of bold assumptions about growth, margins, and the company’s post-cyclical recovery driving this fair value. Dive in to unpack what makes this narrative so contrarian as the market lags. See the numbers that could change investors’ minds.

Result: Fair Value of €70.63 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent macroeconomic headwinds and weak demand in key end-markets could challenge Arkema's recovery and limit the near-term upside for investors.

Find out about the key risks to this Arkema narrative.

Build Your Own Arkema Narrative

If you see Arkema’s outlook differently or enjoy hands-on analysis, you can piece together your own view in just a few minutes using Do it your way.

A great starting point for your Arkema research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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