AIR LIQUIDE SA (AI.PA) Stock Fundamental Analysis
EPA:AI - Euronext Paris - Matif - FR0000120073 - Common Stock - Currency: EUR
AI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 industry peers in the Chemicals industry. AI scores excellent on profitability, but there are some minor concerns on its financial health. AI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AI was profitable.
AI had a positive operating cash flow in the past year.
In the past 5 years AI has always been profitable.
In the past 5 years AI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.37%, AI is doing good in the industry, outperforming 79.37% of the companies in the same industry.
With an excellent Return On Equity value of 12.31%, AI belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
AI's Return On Invested Capital of 9.71% is amongst the best of the industry. AI outperforms 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 12.31% | ||
| ROIC | 9.71% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AI (12.22%) is better than 87.30% of its industry peers.
AI's Profit Margin has improved in the last couple of years.
AI has a better Operating Margin (19.93%) than 92.06% of its industry peers.
In the last couple of years the Operating Margin of AI has grown nicely.
The Gross Margin of AI (63.01%) is better than 93.65% of its industry peers.
In the last couple of years the Gross Margin of AI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.93% | ||
| PM (TTM) | 12.22% | ||
| GM | 63.01% |
OM growth 3Y3.78%
OM growth 5Y2.86%
PM growth 3Y3.49%
PM growth 5Y3.63%
GM growth 3Y1.78%
GM growth 5Y0.07%
2. Health
2.1 Basic Checks
AI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for AI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.93 indicates that AI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.93, AI belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
AI has a debt to FCF ratio of 4.45. This is a neutral value as AI would need 4.45 years to pay back of all of its debts.
The Debt to FCF ratio of AI (4.45) is better than 74.60% of its industry peers.
AI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
AI's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. AI outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.45 | ||
| Altman-Z | 3.93 |
ROIC/WACC1.26
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.88 indicates that AI may have some problems paying its short term obligations.
AI has a worse Current ratio (0.88) than 85.71% of its industry peers.
AI has a Quick Ratio of 0.88. This is a bad value and indicates that AI is not financially healthy enough and could expect problems in meeting its short term obligations.
AI's Quick ratio of 0.65 is on the low side compared to the rest of the industry. AI is outperformed by 85.71% of its industry peers.
The current and quick ratio evaluation for AI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
AI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
Measured over the past 5 years, AI shows a small growth in Earnings Per Share. The EPS has been growing by 5.93% on average per year.
AI shows a decrease in Revenue. In the last year, the revenue decreased by -1.99%.
The Revenue has been growing slightly by 4.30% on average over the past years.
EPS 1Y (TTM)7.41%
EPS 3Y5.17%
EPS 5Y5.93%
EPS Q2Q%19.81%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y5.06%
Revenue growth 5Y4.3%
Sales Q2Q%0.38%
3.2 Future
AI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.86% yearly.
The Revenue is expected to grow by 6.00% on average over the next years.
EPS Next Y10.73%
EPS Next 2Y9.93%
EPS Next 3Y11.2%
EPS Next 5Y11.86%
Revenue Next Year5.5%
Revenue Next 2Y5.23%
Revenue Next 3Y5.47%
Revenue Next 5Y6%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.41, AI can be considered very expensive at the moment.
AI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, AI is valued at the same level.
Based on the Price/Forward Earnings ratio of 25.53, the valuation of AI can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AI.
When comparing the Price/Forward Earnings ratio of AI to the average of the S&P500 Index (22.10), we can say AI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 25.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AI.
The rest of the industry has a similar Price/Free Cash Flow ratio as AI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.28 | ||
| EV/EBITDA | 14.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.93
PEG (5Y)5.3
EPS Next 2Y9.93%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
AI has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 3.09, AI has a dividend in line with its industry peers.
AI's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of AI has a limited annual growth rate of 5.14%.
Dividend Growth(5Y)5.14%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
AI pays out 51.97% of its income as dividend. This is a bit on the high side, but may be sustainable.
AI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.97%
EPS Next 2Y9.93%
EPS Next 3Y11.2%
EPA:AI (3/7/2025, 7:00:00 PM)
180.3
-0.2 (-0.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners27.5%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap104.27B
Analysts81.25
Price Target196.4 (8.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend2.88
Dividend Growth(5Y)5.14%
DP51.97%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.26%
PT rev (3m)2.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.37%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.41 | ||
| Fwd PE | 25.53 | ||
| P/S | 3.85 | ||
| P/FCF | 37.28 | ||
| P/OCF | 16.49 | ||
| P/B | 3.88 | ||
| P/tB | 10.23 | ||
| EV/EBITDA | 14.54 |
EPS(TTM)5.74
EY3.18%
EPS(NY)7.06
Fwd EY3.92%
FCF(TTM)4.84
FCFY2.68%
OCF(TTM)10.93
OCFY6.06%
SpS46.79
BVpS46.45
TBVpS17.62
PEG (NY)2.93
PEG (5Y)5.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 12.31% | ||
| ROCE | 12.72% | ||
| ROIC | 9.71% | ||
| ROICexc | 10.17% | ||
| ROICexgc | 17.29% | ||
| OM | 19.93% | ||
| PM (TTM) | 12.22% | ||
| GM | 63.01% | ||
| FCFM | 10.34% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y3.78%
OM growth 5Y2.86%
PM growth 3Y3.49%
PM growth 5Y3.63%
GM growth 3Y1.78%
GM growth 5Y0.07%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 4.45 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 140.72% | ||
| Cap/Sales | 13.03% | ||
| Interest Coverage | 20.46 | ||
| Cash Conversion | 80.06% | ||
| Profit Quality | 84.6% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 3.93 |
F-Score8
WACC7.71%
ROIC/WACC1.26
Cap/Depr(3y)136.72%
Cap/Depr(5y)133.49%
Cap/Sales(3y)12.08%
Cap/Sales(5y)12.32%
Profit Quality(3y)89.93%
Profit Quality(5y)95.75%
High Growth Momentum
Growth
EPS 1Y (TTM)7.41%
EPS 3Y5.17%
EPS 5Y5.93%
EPS Q2Q%19.81%
EPS Next Y10.73%
EPS Next 2Y9.93%
EPS Next 3Y11.2%
EPS Next 5Y11.86%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y5.06%
Revenue growth 5Y4.3%
Sales Q2Q%0.38%
Revenue Next Year5.5%
Revenue Next 2Y5.23%
Revenue Next 3Y5.47%
Revenue Next 5Y6%
EBIT growth 1Y6.38%
EBIT growth 3Y9.02%
EBIT growth 5Y7.28%
EBIT Next Year59.94%
EBIT Next 3Y23.38%
EBIT Next 5Y16.69%
FCF growth 1Y-2.53%
FCF growth 3Y1.77%
FCF growth 5Y6.15%
OCF growth 1Y0.95%
OCF growth 3Y4.31%
OCF growth 5Y6.05%