The factors in favour of a rise in the Arkema share price:
Firstly, the Arkema Group offers an undeniable advantage concerning the organisation of its activities. In fact, this previous subsidiary of the Total Group is organised around three sectors of activities among which sales are fairly evenly divided. These are the high performance materials sector and those of specialty chemicals and paints.
Arkema is also well positioned on a worldwide level with the majority of its activities where it is currently the leader.
Recently the Arkema Group also decided to concentrate on its speciality chemicals activities as well as certain niche sectors such as renewable energy, water purification, lighter materials and plant chemistry which would enable the company to significantly reduce its cyclical bias.
For the investors, the relatively low level of debt compared to that of its competitors in this sector is also a considerable advantage.
We also note that one of the advantages of this company is the excellent division of its activities around the world. Although the European market is still in the lead with 40% of the company sales, the North American market and that of Asia still produce 34% and 20% respectively of the sales. The group essentially concentrates on the American and Chinese markets which are currently highly popular.
The Arkema Group also attracts by its capability to achieve targeted and high quality acquisitions that notably enable this company to diversify its activities and target new markets.
Finally, the long term objectives for the dividends remain bullish with an increase that is highly attractive for the shareholders.