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Air Liquide (AIQUY)
OTHER OTC:AIQUY

Air Liquide (AIQUY) AI Stock Analysis

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Air Liquide

(OTC:AIQUY)

Rating:78Outperform
Price Target:
$48.00
â–²(16.00%Upside)
Air Liquide's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators support a bullish trend, although valuation concerns with a high P/E ratio slightly temper enthusiasm. The company's strategic advancements and strong growth prospects contribute positively to the outlook.

Air Liquide (AIQUY) vs. SPDR S&P 500 ETF (SPY)

Air Liquide Business Overview & Revenue Model

Company DescriptionL'Air Liquide S.A. provides gases, technologies, and services for the industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company's Gas & Services segment offers oxygen, nitrogen, argon, hydrogen, and carbon monoxide to the metals, chemicals, refining, and energy sectors; and gases, application equipment, and associated services to the materials and energy, automotive and manufacturing, food and pharmaceuticals, technology and research, and craftsmen and retail sectors. It also supplies medical gases, hygiene products, equipment, and services to hospitals, as well as to patients in their homes; and produces and distributes healthcare specialty ingredients for the cosmetics, pharmaceutical, and vaccine markets. In addition, this segment supplies gases, materials, and services for use in the production of semi-conductors, as well as flat screens and photovoltaic panels. Its Engineering & Construction segment designs, develops, and builds industrial gas production plants for third parties; and designs and manufactures plants in the traditional, renewable, and alternative energy sectors. The company's Global Markets & Technologies segment delivers technological solutions, such as molecules, equipment, and services to support the markets of energy transition, primarily in transport, energy, and waste valorization, as well as related to deep tech in the space exploration, aerospace, and big science. This segment also invests in biomethane production units, as well as develops stations for distributing natural bio-gas for vehicles and hydrogen to support clean mobility; operates biomethane production units for use in the maritime industry; and supplies gases for the offshore oil and gas platforms, offshore wind turbines, and cryogenic transportation by sea. L'Air Liquide S.A. was incorporated in 1902 and is headquartered in Paris, France.
How the Company Makes MoneyAir Liquide generates revenue primarily through the sale of industrial gases and related services to a diverse customer base. The company's key revenue streams include large industries, which involve supplying gases for petrochemicals, refining, and natural gas markets; industrial merchant, which covers general industrial customers across various sectors; and healthcare, where the company provides medical gases and equipment. Additionally, Air Liquide has a significant presence in electronics, supplying high-purity gases and advanced materials for semiconductor and flat-panel display manufacturing. Strategic partnerships and long-term contracts with major industrial and healthcare clients further contribute to their earnings, ensuring stable and recurring revenue.

Air Liquide Earnings Call Summary

Earnings Call Date:Feb 21, 2025
(Q4-2024)
|
% Change Since: 15.62%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several positive achievements, including record margin improvements, a significant decrease in CO2 emissions, and strong future growth prospects through a robust backlog and increased investment. However, challenges persist, such as soft volumes in certain segments and delays in investment decisions due to regulatory uncertainties. Despite these challenges, the overall sentiment leans towards positive due to the strong financial performance and strategic advancements.
Q4-2024 Updates
Positive Updates
Record-Breaking Margin Improvement
Air Liquide achieved a record operating margin improvement of over 100 basis points in 2024, excluding the energy pass-through effect. This improvement was driven by pricing, efficiency, and portfolio management.
Significant Decrease in CO2 Emissions
Air Liquide reported a significant decrease in CO2 emissions, now 11% below the 2020 level. Carbon intensity has been reduced by 40% compared to 2015, surpassing the 2025 objective of minus 30%.
Strong Backlog and Investment Decisions
The company secured future growth with a strong backlog of €4.2 billion and investment decisions reaching €4.4 billion in 2024, indicating robust future growth prospects.
Increase in Recurring ROCE
The recurring return on capital employed (ROCE) has improved and now stands at 10.7%, despite increased investment.
Dividend Increase
Air Liquide proposed a dividend per share of €3.3 in 2025, an increase of 13.7% compared to the previous year.
Negative Updates
Soft Industrial Merchant Volumes in EMEA
Volumes in the Industrial Merchant segment in EMEA remained soft throughout 2024 and are expected to continue being soft in 2025.
Challenges in Hardgoods Segment
The hardgoods segment in the US posted a marked decline in 2024, and activity is expected to remain muted into 2025.
Restructuring Costs
Air Liquide incurred restructuring costs of over €200 million in 2024 as part of their transformation plan.
Regulatory Uncertainty Impacting FID in Europe
Several projects in Europe are experiencing delays in final investment decisions due to regulatory uncertainty and the need for further clarification.
Company Guidance
During the Air Liquide Full Year 2024 Revenue Conference Call, the company highlighted a record year, emphasizing a margin improvement of over 100 basis points and sales growth of 3% on a comparable basis. The recurring Return on Capital Employed (ROCE) reached 10.7% despite increased investments, and CO2 emissions were reduced by 11% compared to 2020 levels. Air Liquide reported a strong backlog of €4.2 billion in growth investment projects under construction. The company announced a record €4.4 billion in investment decisions for 2024, with significant projects in the USA, Asia, and Europe. The margin improvement target was upgraded for the second time, now aiming for a cumulative 460 basis points over five years from 2022 to 2026. The dividend per share proposed for 2025 is €3.3, marking a 13.7% increase from the previous year.

Air Liquide Financial Statement Overview

Summary
Air Liquide exhibits solid financial health with strong profitability, efficient leverage use, and stable cash flow generation. The company maintains a robust financial position, capable of sustaining growth and managing economic challenges.
Income Statement
85
Very Positive
Air Liquide has demonstrated strong profitability with a consistent gross profit margin around 63% and a robust net profit margin of approximately 12.2% in the latest year. Revenue growth has been stable, with minor fluctuations, showing resilience in market conditions. EBIT and EBITDA margins are healthy, indicating effective cost management and operational efficiency.
Balance Sheet
78
Positive
The company maintains a solid financial position with a debt-to-equity ratio of 0.46, reflecting a balanced leverage strategy. Return on equity is strong at 12.3%, indicating effective utilization of shareholder equity. The equity ratio of 51.8% suggests a stable asset base predominantly funded by equity, reducing financial risk.
Cash Flow
82
Very Positive
The cash flow statement reveals a consistent ability to generate free cash flow, with a slight decrease in the most recent year but still maintaining a positive trajectory. The operating cash flow to net income ratio is strong, highlighting efficient cash generation relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.06B27.61B29.93B23.33B20.49B
Gross Profit17.05B16.46B16.12B13.95B13.29B
EBITDA7.29B6.71B6.81B6.19B5.80B
Net Income3.31B3.08B2.76B2.57B2.44B
Balance Sheet
Total Assets51.87B48.33B49.52B46.78B41.98B
Cash, Cash Equivalents and Short-Term Investments1.92B1.62B1.91B2.25B1.79B
Total Debt12.45B12.04B13.45B13.96B13.59B
Total Liabilities24.25B23.29B24.84B24.69B22.89B
Stockholders Equity26.86B24.32B23.74B21.46B18.54B
Cash Flow
Free Cash Flow2.80B2.87B2.31B2.45B2.33B
Operating Cash Flow6.32B6.26B5.59B5.37B4.96B
Investing Cash Flow-3.58B-3.08B-3.26B-3.39B-1.98B
Financing Cash Flow-2.81B-3.48B-2.54B-1.57B-2.16B

Air Liquide Technical Analysis

Technical Analysis Sentiment
Positive
Last Price41.38
Price Trends
50DMA
41.10
Positive
100DMA
39.09
Positive
200DMA
36.86
Positive
Market Momentum
MACD
-0.04
Positive
RSI
50.49
Neutral
STOCH
27.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIQUY, the sentiment is Positive. The current price of 41.38 is below the 20-day moving average (MA) of 41.66, above the 50-day MA of 41.10, and above the 200-day MA of 36.86, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 27.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIQUY.

Air Liquide Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$119.45B33.3513.08%1.78%-1.94%7.08%
ECECL
77
Outperform
$75.83B36.3824.62%0.99%1.19%36.31%
LILIN
77
Outperform
$216.63B33.4017.20%1.29%0.78%6.75%
DDDD
64
Neutral
$28.45B40.240.06%2.37%4.51%-121.68%
PPPPG
64
Neutral
$25.71B19.1818.47%2.39%-7.67%-0.58%
APAPD
63
Neutral
$62.76B40.9810.45%2.53%-1.09%-37.71%
44
Neutral
C$953.01M-6.70-13.31%2.75%17.55%-32.28%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AIQUY
Air Liquide
41.38
7.20
21.06%
APD
Air Products and Chemicals
282.35
30.69
12.20%
ECL
Ecolab
267.45
31.80
13.49%
PPG
PPG Industries
114.15
-8.86
-7.20%
DD
DuPont de Nemours
68.88
-10.01
-12.69%
LIN
Linde
463.79
30.42
7.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025