AIR LIQUIDE SA (AI.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AI - FR0000120073 - Common Stock
156.26 EUR
-0.68 (-0.43%)
Taking everything into account, AI scores 5 out of 10 in our fundamental rating. AI was compared to 71 industry peers in the Chemicals industry. AI has an excellent profitability rating, but there are some minor concerns on its financial health. AI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AI was profitable.
- In the past year AI had a positive cash flow from operations.
- In the past 5 years AI has always been profitable.
- AI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AI's Return On Assets of 6.70% is fine compared to the rest of the industry. AI outperforms 74.65% of its industry peers.
- AI's Return On Equity of 13.49% is fine compared to the rest of the industry. AI outperforms 76.06% of its industry peers.
- AI has a better Return On Invested Capital (9.87%) than 83.10% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AI is above the industry average of 7.19%.
- The 3 year average ROIC (9.47%) for AI is below the current ROIC(9.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 13.49% | ||
| ROIC | 9.87% |
ROA(3y)6.1%
ROA(5y)5.92%
ROE(3y)12.2%
ROE(5y)12.34%
ROIC(3y)9.47%
ROIC(5y)8.98%
1.3 Margins
- AI has a better Profit Margin (12.22%) than 87.32% 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 92.96% of its industry peers.
- AI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 63.01%, AI belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
- AI's Gross Margin has been stable in the last couple of years.
| 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.
- AI has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for AI has been increased compared to 5 years ago.
- Compared to 1 year ago, AI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.62 indicates that AI is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.62, AI is doing good in the industry, outperforming 70.42% of the companies in the same industry.
- AI has a debt to FCF ratio of 4.60. This is a neutral value as AI would need 4.60 years to pay back of all of its debts.
- AI has a Debt to FCF ratio of 4.60. This is in the better half of the industry: AI outperforms 78.87% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that AI is not too dependend on debt financing.
- AI has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: AI outperforms 50.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.33
WACC7.42%
2.3 Liquidity
- AI has a Current Ratio of 0.84. This is a bad value and indicates that AI is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.84, AI is doing worse than 84.51% of the companies in the same industry.
- AI has a Quick Ratio of 0.84. 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 has a worse Quick ratio (0.61) than 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- AI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.10%, which is quite good.
- Measured over the past years, AI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.55% on average per year.
- Looking at the last year, AI shows a decrease in Revenue. The Revenue has decreased by -1.99% in the last year.
- AI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
EPS 1Y (TTM)11.1%
EPS 3Y12.6%
EPS 5Y11.55%
EPS Q2Q%-4.88%
Revenue 1Y (TTM)-1.99%
Revenue growth 3Y5.06%
Revenue growth 5Y4.3%
Sales Q2Q%2.94%
3.2 Future
- Based on estimates for the next years, AI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.14% on average per year.
- AI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y3.85%
EPS Next 2Y7.33%
EPS Next 3Y8.28%
EPS Next 5Y10.14%
Revenue Next Year0.45%
Revenue Next 2Y2.29%
Revenue Next 3Y3.29%
Revenue Next 5Y3.85%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.92, which indicates a rather expensive current valuation of AI.
- AI's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of AI to the average of the S&P500 Index (28.82), we can say AI is valued inline with the index average.
- A Price/Forward Earnings ratio of 21.10 indicates a rather expensive valuation of AI.
- AI's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. AI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 21.1 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AI.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AI indicates a somewhat cheap valuation: AI is cheaper than 60.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.89 | ||
| EV/EBITDA | 12.56 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AI does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of AI may justify a higher PE ratio.
PEG (NY)6.47
PEG (5Y)2.16
EPS Next 2Y7.33%
EPS Next 3Y8.28%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.10%, AI has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.45, AI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
- The dividend of AI has a limited annual growth rate of 5.86%.
Dividend Growth(5Y)5.86%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 59.10% of the earnings are spent on dividend by AI. This is a bit on the high side, but may be sustainable.
- The dividend of AI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.1%
EPS Next 2Y7.33%
EPS Next 3Y8.28%
AIR LIQUIDE SA / AI.PA FAQ
What is the ChartMill fundamental rating of AIR LIQUIDE SA (AI.PA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AI.PA.
What is the valuation status for AI stock?
ChartMill assigns a valuation rating of 3 / 10 to AIR LIQUIDE SA (AI.PA). This can be considered as Overvalued.
Can you provide the profitability details for AIR LIQUIDE SA?
AIR LIQUIDE SA (AI.PA) has a profitability rating of 9 / 10.
What is the financial health of AIR LIQUIDE SA (AI.PA) stock?
The financial health rating of AIR LIQUIDE SA (AI.PA) is 4 / 10.
What is the earnings growth outlook for AIR LIQUIDE SA?
The Earnings per Share (EPS) of AIR LIQUIDE SA (AI.PA) is expected to grow by 3.85% in the next year.