Air Liquide (AI) AI Stock Analysis

• Market Cap: €106.16B
• Dividend Yield: 1.58%
• Average Volume (3M): 663.07K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 0.97
• Revenue Growth: -1.99%
• EPS Growth: 7.03%
• Country: FR
• Employees: 64,124
• Sector: Industrials
• Sector Strength: 92
• Industry: Chemicals - Specialty
• EPS (TTM): 2.82
• Shares Outstanding: 578,439,150
• 10 Day Avg. Volume: 687,800
• 30 Day Avg. Volume: 663,073
• PEG Ratio: 3.49
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.92
• 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: €192.27
• Price Target Upside: 4.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 72 Outperform
• Price Target: ―

Air Liquide's strong financial performance, characterized by steady profitability and efficient cash flow, is a major positive factor. However, technical analysis indicates potential caution, as the stock is trading below key moving averages. Additionally, the high P/E ratio presents a valuation risk unless earnings growth improves. Overall, the stock presents a balanced opportunity with key areas to monitor, particularly in revenue growth and market conditions.

Positive Factors

Earnings

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

Financial Performance

Air Liquide's margin targets have been upgraded, reflecting a stronger than expected margin momentum.

Valuation

Air Liquide trades at a discount to key peers on both an EV/EBITDA and PE basis, potentially offering value to investors.

Negative Factors

Growth Challenges

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.

Project Delays

Mid-term LI growth could be affected due to postponed decisions for new projects and delayed running projects, especially with regard to energy transition.

Regional Performance

EMEA was the weakest region with stable comparable sales and Large Industries affected by low demand from key industries.

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 to a diverse range of industries. The company's business model is built on long-term contracts and strategic partnerships with key players in various sectors, ensuring a stable and recurring revenue stream. Air Liquide's revenue streams can be categorized into three main sectors: Gas & Services, Engineering & Construction, and Global Markets & Technologies. The Gas & Services segment is the largest revenue contributor, offering gases for various industrial applications, as well as medical gases and home healthcare services. Engineering & Construction provides design and engineering services for gas production units, while Global Markets & Technologies focuses on developing sustainable and innovative technologies, including hydrogen energy solutions. Additionally, Air Liquide's commitment to research and development and its investment in cutting-edge technologies play a significant role in enhancing its offerings and expanding its market presence.

Air Liquide Financial Statement Overview

Summary

Overall, Air Liquide presents a strong financial position with steady profitability and efficient cash flow management. While revenue has slightly declined, the company's solid margins and good balance sheet health suggest a well-managed business. The key area to monitor would be the revenue trajectory to ensure continued growth.

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
	EBIT
4.95B	4.57B	4.86B	4.16B	3.79B
	EBITDA
7.33B	6.90B	6.81B	6.19B	5.80B
	Net Income Common Stockholders
3.31B	3.08B	2.76B	2.57B	2.44B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.92B	1.62B	1.91B	2.25B	1.79B
	Total Assets
51.87B	48.33B	49.52B	46.78B	41.98B
	Total Debt
12.45B	12.11B	13.45B	13.96B	13.59B
	Net Debt
10.53B	10.49B	11.54B	11.71B	11.80B
	Total Liabilities
24.25B	23.29B	24.84B	24.69B	22.89B
	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	-3.26B	-3.39B	-1.98B
	Financing Cash Flow
-2.81B	-3.48B	-2.54B	-1.57B	-2.16B

Air Liquide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 183.92
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 183.92 is above the 20-day moving average (MA) of 180.67, above the 50-day MA of 175.26, and above the 200-day MA of 166.13, indicating a bullish trend. The MACD of 3.17 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 66.04 is Neutral, 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
AI	72 Outperform	€106.16B	32.07	12.92%	1.58%	-1.99%	7.03%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
0HB5		€85.67B	8.10	9.58%	5.93%	―	―
0HAZ		€25.11B	14.96	15.03%	2.30%	―	―
0IIH		€21.24B	18.76	7.52%	6.63%	―	―
0NZM		€198.15B	31.06	20.60%	1.74%	―	―
0HAU		€239.28B	18.94	19.53%	2.67%	―	―

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.

Air Liquide’s Successful 500 Million Euro Green Bond Issuance

Air Liquide has successfully issued a 500 million euro green bond as part of its ADVANCE strategic plan, aimed at supporting energy transition projects in hydrogen and low-carbon air gases. This issuance, which was significantly oversubscribed, underscores investor confidence in Air Liquide’s market strength and will help finance transformative projects, reinforcing the company’s commitment to sustainable development in a volatile market environment.

Air Liquide Announces 2025 General Meeting to Discuss Strategic Developments

Air Liquide has announced its General Meeting scheduled for May 6, 2025, at the Palais des Congrès in Paris. This meeting will discuss the Group’s strategy and development prospects, with shareholders encouraged to participate via various methods. The meeting will be broadcast live and accessible to those with hearing impairments. The company emphasizes the importance of shareholder participation, highlighting its commitment to transparency and engagement with its stakeholders.

Air Liquide Announces Capital Increase Following Option Exercise

Air Liquide announced a capital increase following the exercise of stock subscription options, resulting in the issuance of 156,090 new shares. This modification brings the company’s capital to over 3.18 billion euros, enhancing its financial structure and potentially benefiting stakeholders by strengthening its market position.