Air Liquide (AI) AI Stock Analysis

• Market Cap: €101.44B
• Dividend Yield: 1.63%
• Average Volume (3M): 684.11K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.91
• Revenue Growth: -1.99%
• EPS Growth: 7.03%
• Country: FR
• Employees: 64,124
• Sector: Industrials
• Sector Strength: 87
• Industry: Chemicals - Specialty
• EPS (TTM): 2.82
• Shares Outstanding: 578,466,600
• 10 Day Avg. Volume: 837,277
• 30 Day Avg. Volume: 684,107
• PEG Ratio: 3.41
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €187.91
• Price Target Upside: 6.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 60 Neutral
• Price Target: €184.00 ▲(4.62%Upside)

Air Liquide's strong financial fundamentals are offset by bearish technical indicators and high valuation metrics. The stock's solid profitability and cash flow are positive, but technical signals and valuation concerns suggest caution.

Positive Factors

Earnings

Efficiency measures were a significant earnings driver, achieving high efficiency gains of €131m.

Investment and Backlog

The company made €1bn in investment decisions, with the backlog reaching a record level of €4.5bn.

Margin Expansion

Air Liquide is managing to expand margins even in an environment with underwhelming volume growth, highlighting the effectiveness of its pricing strategy.

Negative Factors

Demand and Industry Impact

EMEA was the weakest region with stable comparable sales and Large Industries affected by low demand from key industries.

Project Delays

Mid-term LI growth could be affected due to postponed decisions for new projects and delayed running projects, especially with regard to energy transition.

Volume Growth

The low growth in Gases was due to lower volume in Industrial Merchant of -1.5% and Large Industries of -0.3%.

Air Liquide Business Overview & Revenue Model

Company Description

Air Liquide (AI) is a world leader in gases, technologies, and services for industry and health. Founded in 1902 and headquartered in Paris, France, the company operates in over 75 countries, serving more than 3.8 million customers and patients. Air Liquide's core business is providing industrial gases such as oxygen, nitrogen, and hydrogen, which are essential for a wide range of industries including healthcare, electronics, food and beverage, energy, and chemicals. The company is also heavily involved in developing innovative solutions for the transition to a low-carbon economy, investing in hydrogen energy and other sustainable technologies.

How the Company Makes Money

Air Liquide generates revenue primarily through the sale of industrial gases and related services to a diverse range of industries. The company's business model is built on long-term contracts and strategic partnerships with key players in various sectors, ensuring a stable and recurring revenue stream. Air Liquide's revenue streams can be categorized into three main sectors: Gas & Services, Engineering & Construction, and Global Markets & Technologies. The Gas & Services segment is the largest revenue contributor, offering gases for various industrial applications, as well as medical gases and home healthcare services. Engineering & Construction provides design and engineering services for gas production units, while Global Markets & Technologies focuses on developing sustainable and innovative technologies, including hydrogen energy solutions. Additionally, Air Liquide's commitment to research and development and its investment in cutting-edge technologies play a significant role in enhancing its offerings and expanding its market presence.

Air Liquide Financial Statement Overview

Summary

Air Liquide presents a strong financial position with healthy margins and efficient cash flow management. Despite a slight revenue decline, profitability remains robust, with good balance sheet health reflected in manageable debt levels and solid equity usage.

Income Statement

Air Liquide demonstrates strong and consistent profitability with a gross profit margin of 63.0% and net profit margin of 12.2% in the latest period. The EBIT margin is also robust at 18.3%, indicating efficient core operations. However, there is a slight decline in revenue year-over-year by 2.0%, which could be a concern if it persists.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.46, which is manageable, and an equity ratio of 51.8%. Return on equity is solid at 12.3%, reflecting effective use of equity capital. Despite the high level of debt, the company maintains a good equity base.

Cash Flow

Air Liquide's cash flow is strong with a stable free cash flow and an operating cash flow to net income ratio of 1.91, indicating good cash generation capabilities relative to net income. The free cash flow to net income ratio stands at 0.85, showing efficient capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.06B	27.61B	29.93B	23.33B	20.49B
Gross Profit	17.05B	16.46B	16.12B	13.95B	13.29B
EBITDA	7.33B	6.90B	6.81B	6.11B	5.80B
Net Income	3.31B	3.08B	2.76B	2.57B	2.44B
Balance Sheet
Total Assets	51.87B	48.33B	49.52B	46.78B	41.98B
Cash, Cash Equivalents and Short-Term Investments	1.92B	1.62B	1.91B	2.25B	1.79B
Total Debt	12.45B	12.11B	13.45B	13.96B	13.49B
Total Liabilities	24.25B	23.29B	24.95B	24.78B	22.97B
Stockholders Equity	26.86B	24.32B	23.74B	21.46B	18.54B
Cash Flow
Free Cash Flow	2.80B	2.87B	2.31B	2.45B	2.33B
Operating Cash Flow	6.32B	6.26B	5.59B	5.37B	4.96B
Investing Cash Flow	-3.58B	-3.08B	-3.24B	-3.35B	-1.95B
Financing Cash Flow	-2.81B	-3.48B	-2.78B	-1.82B	-2.43B

Air Liquide Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 175.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AI, the sentiment is Neutral. The current price of 175.88 is below the 20-day moving average (MA) of 179.61, below the 50-day MA of 180.40, and above the 200-day MA of 168.53, indicating a neutral trend. The MACD of -1.71 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 23.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:AI.

Air Liquide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELIS	79 Outperform	$5.74B	16.94	9.66%	1.54%	6.13%	27.24%
SGO	74 Outperform	€48.38B	17.21	11.75%	1.95%	-2.86%	8.16%
AKE	67 Neutral	€4.83B	15.26	4.87%	5.65%	2.71%	-10.61%
Sector *	65 Neutral	$10.65B	15.52	5.51%	1.92%	2.72%	-26.34%
ML	61 Neutral	$22.21B	11.87	10.41%	4.38%	-4.06%	-4.47%
AI	60 Neutral	€101.44B	30.64	12.92%	1.63%	-1.99%	7.03%

Air Liquide Corporate Events

Air Liquide Announces 2025 General Meeting to Discuss Strategic and Financial Outlook

Air Liquide has announced its Combined General Meeting scheduled for May 6, 2025, where shareholders will discuss the company’s strategic framework, financial performance, and future prospects. The meeting will also address resolutions related to corporate governance, remuneration policies, and capital management, reflecting the company’s commitment to transparency and shareholder engagement.