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Air Liquide (FR:AI)
:AI
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Air Liquide (AI) AI Stock Analysis

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FR:AI

Air Liquide

(LSE:AI)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
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 (AI) vs. iShares MSCI France ETF (EWQ)

Air Liquide Business Overview & Revenue Model

Company DescriptionL'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 MoneyAir 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
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.40B27.06B27.61B29.93B23.33B20.49B
Gross Profit17.34B17.05B16.46B16.12B13.95B13.29B
EBITDA7.59B7.50B6.90B6.81B6.11B5.80B
Net Income3.43B3.31B3.08B2.76B2.57B2.44B
Balance Sheet
Total Assets49.34B51.87B48.33B49.52B46.78B41.98B
Cash, Cash Equivalents and Short-Term Investments1.64B1.92B1.62B1.91B2.25B1.79B
Total Debt12.70B12.45B12.11B13.45B13.96B13.49B
Total Liabilities24.11B24.25B23.29B24.95B24.78B22.97B
Stockholders Equity24.51B26.86B24.32B23.74B21.46B18.54B
Cash Flow
Free Cash Flow2.63B2.80B2.87B2.31B2.45B2.33B
Operating Cash Flow6.33B6.32B6.26B5.59B5.37B4.96B
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 Price171.46
Price Trends
50DMA
175.75
Negative
100DMA
176.84
Negative
200DMA
173.36
Negative
Market Momentum
MACD
-1.41
Positive
RSI
41.61
Neutral
STOCH
15.47
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$5.63B15.1010.25%1.87%4.83%52.47%
70
Outperform
€4.01B18.503.56%7.02%0.19%-37.62%
68
Neutral
€44.34B15.8311.84%2.44%1.09%-0.94%
65
Neutral
$21.78B13.988.49%4.65%-3.62%-17.91%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
€97.83B28.5113.92%1.92%1.46%12.62%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:AI
Air Liquide
171.46
4.45
2.66%
FR:AKE
Arkema
51.25
-30.20
-37.08%
FR:ELIS
Elis SA
24.04
3.86
19.10%
FR:EXPL
Societe Explosifs et Produits Chimiques SA
202.00
16.34
8.80%
FR:SGO
Compagnie de Saint Gobain
90.14
9.65
11.99%
FR:ML
Compagnie Générale des Établissements Michelin
29.68
-2.93
-8.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 04, 2025