Air Liquide (AI) AI Stock Analysis

• Market Cap: €101.55B
• Dividend Yield: 2.06%
• Average Volume (3M): 593.22K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.79
• Revenue Growth: 1.46%
• EPS Growth: 12.62%
• Country: FR
• Employees: 64,124
• Sector: General
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): 3.33
• Shares Outstanding: 579,292,970
• 10 Day Avg. Volume: 676,599
• 30 Day Avg. Volume: 593,219
• PEG Ratio: 4.19
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 3.43
• P/FCF Ratio: 36.81
• 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: €195.36
• Price Target Upside: 11.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 7.15
• Revenue Forecast (FY): €27.98B

• Rating: 72 Outperform
• Price Target: €195.00 ▲(11.00% Upside)
• Action: Upgraded Date: 02/21/26
• Date: Action: Upgraded 02/21/26

The score is driven primarily by solid financial quality (strong margins and dependable operating cash flow) and supportive technical momentum (price above key moving averages with positive MACD). These positives are tempered by a relatively high P/E and softer recent revenue/free-cash-flow momentum with a 2025 debt uptick.

Positive Factors

Improving profitability and margins

Air Liquide's EBIT and EBITDA have risen and net margin expanded to ~12.2% in 2024, with steady low‑teens ROE. This reflects durable operational efficiency and pricing power in gas and services, supporting resilient earnings quality over the medium term.

Reliable operating cash generation

Consistently strong operating cash flow (~€5.0B–€6.4B, 2020–2025) provides a stable funding base for capex, dividends and strategic investments. Reliable OCF helps absorb cyclical pressure and supports multi‑quarter capital programs and sustainability projects.

Diversified global footprint and sticky contracts

A presence in 80+ countries and long‑term contracts across healthcare, chemicals and industry create diversified, sticky revenue. Integrated solutions and partnerships increase switching costs and reduce exposure to any single market, aiding stability over months.

Negative Factors

Sustained soft top‑line momentum

Revenue has been slightly negative for three consecutive years (2023–2025), indicating underlying volume weakness. Continued reliance on pricing and mix rather than volume growth may limit scalable expansion and pressure long‑term growth prospects if demand recovery lags.

Volatile and weakening free cash flow

Free cash flow has been uneven and declined in 2024 and 2025 despite solid OCF; historically FCF ran ~41%–47% of net income. This volatility constrains discretionary capital allocation and makes funding for dividends, buybacks or new projects more dependent on timing.

Debt uptick reduces flexibility

After debt/equity improvements through 2024, total debt rose in 2025 versus 2024. Higher leverage combined with softer revenue could limit financial flexibility, increase refinancing risk for large capex or hydrogen investments, and pressure credit metrics over quarters.

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 primarily through the sale of industrial gases and related services. Key revenue streams include the supply of gases for healthcare applications, such as medical oxygen and anesthetic gases, which cater to hospitals and healthcare providers. Additionally, the company supplies industrial gases to sectors like chemicals, metallurgy, and food processing, where gases are essential for production processes. Long-term contracts with clients ensure stable revenue, while the company also benefits from partnerships with major industries for customized gas solutions. Furthermore, Air Liquide invests in innovative technologies and sustainability initiatives, which can lead to new revenue opportunities and enhance its market position.

Air Liquide Financial Statement Overview

Summary

Strong and improving profitability (rising EBIT/EBITDA and expanding net margin to ~12.2% in 2024) with steady low-teens ROE and reliable operating cash flow. Offsets are slightly negative revenue trends across recent years, uneven/slightly weakening free cash flow into 2024–2025, and higher total debt in 2025 versus 2024.

Income Statement

Profitability looks solid and improving: EBIT and EBITDA have risen steadily from 2022 to 2024, and net profit margin expanded from ~9.2% (2022) to ~12.2% (2024). That said, top-line momentum has cooled—revenue has been slightly negative for three straight years (2023–2025 annual data), suggesting growth is being driven more by pricing/mix and efficiency than volume. Overall, strong margins and resilient earnings, tempered by modest recent revenue pressure.

Balance Sheet

The balance sheet is generally healthy with moderate leverage. Debt-to-equity improved meaningfully from ~0.73 (2020) to ~0.46 (2024), and equity has grown over time, supporting balance sheet strength. Return on equity has been consistently in the low-teens (~11.6%–13.1% from 2020–2024), indicating steady capital efficiency. A watch item is the uptick in total debt in 2025 versus 2024, even as assets stayed broadly stable, which could limit flexibility if the softer revenue trend persists.

Cash Flow

Cash generation is stable: operating cash flow has been consistently strong (~€5.0B–€6.4B from 2020–2025). Free cash flow is positive but uneven—down slightly in 2024 and again in 2025, after a stronger 2023. Cash conversion is decent but not exceptional, with free cash flow running at ~41%–47% of net income (2020–2024), implying ongoing reinvestment/capex needs. Overall, reliable operating cash flow with some volatility in free cash flow trajectory.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.94B	27.06B	27.61B	29.93B	23.33B
Gross Profit	9.64B	17.05B	16.46B	16.12B	13.95B
EBITDA	8.15B	7.50B	6.90B	6.42B	6.11B
Net Income	3.52B	3.31B	3.08B	2.76B	2.57B
Balance Sheet
Total Assets	51.91B	51.87B	48.33B	49.52B	46.78B
Cash, Cash Equivalents and Short-Term Investments	3.96B	1.92B	1.62B	1.91B	2.25B
Total Debt	14.67B	12.45B	12.11B	13.45B	13.96B
Total Liabilities	24.97B	24.25B	23.29B	24.95B	24.78B
Stockholders Equity	26.21B	26.86B	24.32B	23.74B	21.46B
Cash Flow
Free Cash Flow	2.51B	2.80B	2.87B	2.31B	2.45B
Operating Cash Flow	6.35B	6.32B	6.26B	5.59B	5.37B
Investing Cash Flow	-3.79B	-3.58B	-3.08B	-3.24B	-3.35B
Financing Cash Flow	-140.30M	-2.81B	-3.48B	-2.78B	-1.82B

Air Liquide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:AI, the sentiment is Positive. The current price of 175.68 is above the 20-day moving average (MA) of 171.02, above the 50-day MA of 163.46, and above the 200-day MA of 171.21, indicating a bullish trend. The MACD of 4.27 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 83.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€6.21B	17.23	10.25%	1.88%	4.83%	52.47%
AI	72 Outperform	€101.55B	29.22	13.92%	2.06%	1.46%	12.62%
ML	72 Outperform	€22.64B	14.58	8.49%	4.95%	-3.62%	-17.91%
AKE	62 Neutral	€4.40B	74.25	2.27%	7.05%	-2.71%	-57.75%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%