Air Liquide (AI) AI Stock Analysis

• Market Cap: €98.47B
• Dividend Yield: 1.65%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.95
• Revenue Growth: -1.99%
• EPS Growth: 7.03%
• Country: FR
• Employees: 67,100
• Sector: Industrials
• Sector Strength: 70
• Industry: Banking
• EPS (TTM): 2.82
• Shares Outstanding: 578,410,770
• 10 Day Avg. Volume: 1,391,782
• 30 Day Avg. Volume: 1,055,927
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.81
• Price to Cash Flow (P/CF): 14.50
• P/FCF Ratio: 79.80
• 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: €192.45
• Price Target Upside: 7.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

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

Financial Performance

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

Investment Decisions

The company made €1bn in investment decisions, with the backlog reaching a record level of €4.5bn.

Margin Expansion

Sustained improved net pricing in conjunction with cost savings is driving an unexpected margin beat for Air Liquide.

Negative Factors

Demand Challenges

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

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.

Volume Growth

The low growth in Gases was due to lower volume in Industrial Merchant of -1.5% and Large Industries of -0.3%.

Air Liquide Business Overview & Revenue Model

Company Description

Air Liquide (AI) is a world leader in gases, technologies, and services for industry and health. Founded in 1902 and headquartered in Paris, France, the company operates in over 75 countries, serving more than 3.8 million customers and patients. Air Liquide's core business is providing industrial gases such as oxygen, nitrogen, and hydrogen, which are essential for a wide range of industries including healthcare, electronics, food and beverage, energy, and chemicals. The company is also heavily involved in developing innovative solutions for the transition to a low-carbon economy, investing in hydrogen energy and other sustainable technologies.

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: 178.44
• 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 178.44 is above the 20-day moving average (MA) of 172.63, above the 50-day MA of 175.54, and above the 200-day MA of 167.27, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 91.42 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
OR	81 Outperform	€198.82B	31.76	20.60%	1.76%	5.60%	3.75%
MC	75 Outperform	€264.81B	21.09	19.53%	2.61%	-1.71%	-17.20%
AI	72 Outperform	€98.47B	29.75	12.92%	1.65%	-1.99%	7.03%
BNP	69 Neutral	€74.13B	6.86	9.58%	6.37%	5.65%	11.45%
CAP	67 Neutral	€22.23B	13.44	15.03%	2.58%	-1.89%	1.15%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
KER	62 Neutral	€21.39B	18.75	7.52%	7.04%	-12.12%	-62.09%

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.

Air Liquide Announces Strong 2024 Results and Future Margin Ambitions

Air Liquide achieved strong financial and operational results in 2024, marked by significant improvements in operating margin and sales growth despite a challenging macroeconomic environment. The company announced ambitious targets for margin expansion, driven by major commercial successes and investment in technological solutions for traditional and emerging markets, including energy transition and semiconductors. Strategic investments, divestitures, and partnerships such as the low-carbon hydrogen project with ExxonMobil, reflect Air Liquide’s commitment to sustainable growth and innovation.

Air Liquide and TotalEnergies to Invest Over €1 Billion in European Hydrogen Projects

Air Liquide, in collaboration with TotalEnergies, has announced significant investments in two large-scale electrolyzer projects aimed at producing renewable and low-carbon hydrogen in Europe. These projects, with a combined capacity of 450 MW and requiring over one billion euros in investment, are expected to substantially reduce CO2 emissions and enhance Air Liquide’s leadership in European industry decarbonization. The projects, supported by EU and Dutch programs, highlight Air Liquide’s commitment to low-carbon hydrogen production and its strategic partnership with TotalEnergies to decarbonize industrial and mobility sectors.

Air Liquide Updates Voting Rights and Shares Information

Air Liquide’s recent announcement details the total number of voting rights and shares as of January 31, 2025, highlighting a slight increase in actual voting rights from the previous month. This update reflects the company’s ongoing commitment to transparency and governance, reinforcing its strategic positioning in the market and its dedication to stakeholders.