Air Liquide (AI) AI Stock Analysis

• Market Cap: €99.86B
• Dividend Yield: 1.94%
• Average Volume (3M): 610.68K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 0.85
• Revenue Growth: 1.46%
• EPS Growth: 12.62%
• Country: FR
• Employees: 64,124
• Sector: Basic Materials
• Sector Strength: 53
• Industry: Chemicals - Specialty
• EPS (TTM): 3.20
• Shares Outstanding: 578,477,900
• 10 Day Avg. Volume: 673,490
• 30 Day Avg. Volume: 610,682
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €193.17
• Price Target Upside: 11.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 72 Outperform
• Price Target: €192.00 ▲(10.98% Upside)

Air Liquide's solid financial performance, characterized by strong profitability and cash flow management, is a key strength, contributing significantly to the score. However, technical indicators show a neutral to slightly bearish trend, and the valuation suggests potential overvaluation, which tempers the overall score. The absence of earnings call data and corporate events leaves these components unconsidered.

Positive Factors

Efficiency Gains

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

Healthcare Growth

Healthcare reported robust growth of +12%, driven by a 4% increase in prices at home care in LatAm.

Negative Factors

Industrial Merchant Volume Decline

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

Macro Headwinds

Macro headwinds might extend the phase of negative y/y volume in IM and LI, postpone the Electronics recovery, and the large project pipeline could be less dynamic.

Air Liquide Business Overview & Revenue Model

Company Description

L'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. It operates in Gas & Services, Engineering & Construction, and Global Markets & Technologies segments. The Gas & Services segment comprises large industries business, which offers gas and energy solutions including oxygen, nitrogen, argon, hydrogen, and carbon monoxide, as well as operates cogeneration plants to supply steam and electricity to metals, chemicals, refining, and energy industries; and industrial merchant business line provides industrial gases, equipment, hardgoods, and associated services to materials and energy, automotive and manufacturing, food and pharmaceuticals, technology and research, and craftsmen and retail sectors. This segment also includes healthcare business, which provides medical gases, home healthcare services, medical equipment, and specialty ingredient to patients, healthcare professionals, and hospitals; and electronic business supply carrier gases, electronic specialty and advanced materials, equipment and installation, and service to semiconductor, flat panel, and photovoltaic markets. The Engineering & Construction segment designs, develops, and builds industrial gas production plants to third parties; and design and manufacture plants in traditional, renewable and alternative energy sectors. The Global Markets & Technologies segment delivers technological solutions, such as molecules, equipment, and services to energy transition and deep technology. This segment also invests in and operates biomethane production units; designs hydrogen refueling stations; 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 Money

Air Liquide generates revenue through a diversified business model that includes the production and distribution of industrial gases as its primary revenue stream. The company delivers these gases to a broad customer base across sectors such as manufacturing, healthcare, electronics, and energy. Key revenue streams include long-term contracts with industrial clients for on-site production, cylinder gas sales, and large-scale, centralized gas production facilities known as air separation units. In healthcare, Air Liquide provides medical gases, home healthcare services, and hospital equipment. Additionally, the company has strategic partnerships and acquisitions that enhance its technological capabilities and geographic reach, further contributing to its revenue growth.

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: 173.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 173 is below the 20-day moving average (MA) of 173.36, below the 50-day MA of 177.14, and above the 200-day MA of 169.22, indicating a neutral trend. The MACD of -1.18 indicates Negative momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 25.18 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
AI	72 Outperform	€99.86B	28.98	13.92%	1.94%	1.46%	12.62%
Sector *	44 Neutral	C$857.60M	-6.73	-14.95%	2.79%	16.39%	-27.50%
0IB0	―	€4.39B	20.29	3.56%	5.45%	―	―
ELSSF	―	$6.64B	16.37	10.25%	1.76%	―	―
0AVG	―	$419.31M	17.54	15.26%	0.72%	―	―
COD	―	€45.83B	17.08	11.84%	2.27%	―	―
MGDDF	―	$25.30B	14.87	8.49%	4.42%	―	―

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.