Yahoo Finance Why Arkema SA. (EPA:AKE) Should Have A Place In Your Portfolio
Arkema SA. (ENXTPA:AKE) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of AKE, it is a financially-sound , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Arkema here.
Excellent balance sheet with proven track record and pays a dividend
AKE delivered a bottom-line expansion of 37.18% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, AKE also outperformed its industry, which delivered a growth of 16.56%. This paints a buoyant picture for the company. AKE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. AKE appears to have made good use of debt, producing operating cash levels of 0.4x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
AKE is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Arkema, there are three key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for AKE’s future growth? Take a look at our free research report of analyst consensus for AKE’s outlook.
Valuation: What is AKE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AKE is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AKE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
