Air Liquide (AI) AI Stock Analysis

• Market Cap: €97.51B
• Dividend Yield: 2.01%
• Average Volume (3M): 593.22K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.81
• Revenue Growth: 1.46%
• EPS Growth: 12.62%
• Country: FR
• Employees: 64,124
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.32
• Shares Outstanding: 578,533,400
• 10 Day Avg. Volume: 676,599
• 30 Day Avg. Volume: 593,219
• 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: €192.32
• Price Target Upside: 16.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €183.00 ▲(11.30% Upside)

Air Liquide's strong financial performance is the most significant factor, supported by solid profitability and cash flow management. However, technical indicators suggest a bearish trend, and the valuation appears high, which tempers the overall score.

Positive Factors

Cash Generation Ability

Strong cash generation ability supports reinvestment in growth opportunities and provides a buffer against economic downturns.

Profitability

High profitability margins indicate efficient operations and pricing power, contributing to sustainable long-term growth.

Balance Sheet Health

A stable balance sheet with manageable debt levels ensures financial flexibility and resilience against market fluctuations.

Negative Factors

Revenue Decline

A decline in revenue, if persistent, could indicate challenges in market demand or competitive pressures, affecting long-term growth.

Technical Analysis

Bearish technical indicators may reflect broader market concerns or internal challenges, potentially impacting investor confidence.

Valuation Concerns

High valuation may limit upside potential and increase vulnerability to market corrections, impacting long-term investor returns.

Air Liquide Business Overview & Revenue Model

Company Description

Air Liquide is a global leader in gases, technologies, and services for various industries, including healthcare, industrial manufacturing, and energy. With a presence in over 80 countries, the company specializes in providing atmospheric and process gases such as oxygen, nitrogen, and hydrogen, along with a range of related services and solutions aimed at improving efficiency and sustainability in its customers' operations.

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 presents a strong financial position with steady profitability and efficient cash flow management. The company maintains robust margins and a stable balance sheet, although a slight revenue decline is noted.

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	6.42B	6.11B	5.77B
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: 164.42
• 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 164.42 is below the 20-day moving average (MA) of 168.53, below the 50-day MA of 171.33, and below the 200-day MA of 175.01, indicating a bearish trend. The MACD of -1.80 indicates Positive momentum. The RSI at 33.34 is Neutral, neither overbought nor oversold. The STOCH value of 16.90 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	$5.75B	15.42	10.25%	1.84%	4.83%	52.47%
ML	67 Neutral	$19.52B	12.44	8.49%	5.02%	-3.62%	-17.91%
AI	66 Neutral	€97.51B	28.42	13.92%	2.01%	1.46%	12.62%
SGO	65 Neutral	€40.34B	14.40	11.84%	2.70%	1.09%	-0.94%
AKE	64 Neutral	€3.74B	17.26	2.27%	7.00%	-2.71%	-57.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%