Air Liquide (AI) AI Stock Analysis

• Market Cap: €97.83B
• Dividend Yield: 1.92%
• Average Volume (3M): 551.88K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.82
• Revenue Growth: 1.46%
• EPS Growth: 12.62%
• Country: FR
• Employees: 64,124
• Sector: Industrials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 3.32
• Shares Outstanding: 578,533,400
• 10 Day Avg. Volume: 656,345
• 30 Day Avg. Volume: 551,875
• PEG Ratio: 3.86
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 3.34
• P/FCF Ratio: 32.34
• 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: €193.64
• Price Target Upside: 12.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 61 Neutral
• Price Target: €181.00 ▲(5.56% Upside)

Air Liquide's strong financial performance is offset by bearish technical signals and a high valuation. The company's solid margins and cash flow management are positive, but the stock's current price level and market momentum suggest caution.

Positive Factors

Business Model Strength

Air Liquide's diversified revenue streams across various sectors provide resilience and stability, supporting long-term growth and reducing dependency on any single market.

Cash Generation Ability

Strong cash generation indicates effective capital management, allowing for reinvestment in growth opportunities and maintaining financial flexibility.

Margin Sustainability

High and stable margins reflect efficient operations and pricing power, supporting sustained profitability and competitive positioning in the industry.

Negative Factors

Revenue Decline

A decline in revenue, if persistent, could signal challenges in market demand or competitive pressures, potentially impacting future growth prospects.

High Debt Levels

While manageable, high debt levels can limit financial flexibility and increase risk, particularly if market conditions deteriorate or interest rates rise.

Equity Utilization

While ROE is solid, reliance on equity for growth may dilute existing shareholders if not managed carefully, impacting long-term shareholder value.

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 multiple streams, primarily by selling industrial gases and related services to a diverse array of sectors, including healthcare, electronics, food and beverage, and energy. Key revenue streams include long-term contracts with major industrial clients for the supply of gases, as well as on-site gas production facilities. The company also earns income from the sale of equipment and technology that enhances gas applications. Significant partnerships with industries such as energy and technology further bolster its earnings, especially in growth areas like hydrogen energy and digital solutions. Additionally, Air Liquide benefits from its commitment to sustainability and innovation, which aligns with global trends towards cleaner energy and efficient industrial processes.

Air Liquide Financial Statement Overview

Summary

Air Liquide demonstrates strong financial performance with robust profitability margins and efficient cash flow management. Despite a slight revenue decline, the company's solid balance sheet and cash flow generation capabilities indicate a well-managed business.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.40B	27.06B	27.61B	29.93B	23.33B	20.49B
Gross Profit	17.34B	17.05B	16.46B	16.12B	13.95B	13.29B
EBITDA	7.59B	7.50B	6.90B	6.81B	6.11B	5.80B
Net Income	3.43B	3.31B	3.08B	2.76B	2.57B	2.44B
Balance Sheet
Total Assets	49.34B	51.87B	48.33B	49.52B	46.78B	41.98B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.92B	1.62B	1.91B	2.25B	1.79B
Total Debt	12.70B	12.45B	12.11B	13.45B	13.96B	13.49B
Total Liabilities	24.11B	24.25B	23.29B	24.95B	24.78B	22.97B
Stockholders Equity	24.51B	26.86B	24.32B	23.74B	21.46B	18.54B
Cash Flow
Free Cash Flow	2.63B	2.80B	2.87B	2.31B	2.45B	2.33B
Operating Cash Flow	6.33B	6.32B	6.26B	5.59B	5.37B	4.96B
Investing Cash Flow	-3.83B	-3.58B	-3.08B	-3.24B	-3.35B	-1.95B
Financing Cash Flow	-2.57B	-2.81B	-3.48B	-2.78B	-1.82B	-2.43B

Air Liquide Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 171.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AI, the sentiment is Negative. The current price of 171.46 is below the 20-day moving average (MA) of 174.21, below the 50-day MA of 175.75, and below the 200-day MA of 173.36, indicating a bearish trend. The MACD of -1.41 indicates Positive momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 15.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:AI.

Air Liquide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELIS	76 Outperform	$5.63B	15.10	10.25%	1.87%	4.83%	52.47%
AKE	70 Outperform	€4.01B	18.50	3.56%	7.02%	0.19%	-37.62%
SGO	68 Neutral	€44.34B	15.83	11.84%	2.44%	1.09%	-0.94%
ML	65 Neutral	$21.78B	13.98	8.49%	4.65%	-3.62%	-17.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AI	61 Neutral	€97.83B	28.51	13.92%	1.92%	1.46%	12.62%