AIR LIQUIDE SA (AI.PA) Stock Fundamental Analysis
EPA:AI - Euronext Paris - Matif - FR0000120073 - Common Stock - Currency: EUR
AI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Chemicals industry. AI has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, AI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AI had positive earnings in the past year.
AI had a positive operating cash flow in the past year.
Each year in the past 5 years AI has 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 77.05% of the companies in the same industry.
AI's Return On Equity of 12.31% is fine compared to the rest of the industry. AI outperforms 78.69% of its industry peers.
AI has a Return On Invested Capital of 9.63%. This is amongst the best in the industry. AI outperforms 81.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AI is above the industry average of 6.81%.
The last Return On Invested Capital (9.63%) for AI is above the 3 year average (9.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 12.31% | ||
| ROIC | 9.63% |
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
The Profit Margin of AI (12.22%) is better than 86.89% of its industry peers.
AI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.93%, AI belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
In the last couple of years the Operating Margin of AI has grown nicely.
With an excellent Gross Margin value of 63.01%, AI belongs to the best of the industry, outperforming 93.44% 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.
Compared to 1 year ago, AI has about the same amount of shares outstanding.
The number of shares outstanding for AI has been increased compared to 5 years ago.
AI has a better debt/assets ratio than last year.
2.2 Solvency
AI has an Altman-Z score of 3.91. This indicates that AI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.91, AI belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
The Debt to FCF ratio of AI is 4.43, which is a neutral value as it means it would take AI, 4.43 years of fcf income to pay off all of its debts.
AI has a better Debt to FCF ratio (4.43) than 77.05% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that AI is not too dependend on debt financing.
The Debt to Equity ratio of AI (0.37) is better than 62.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 3.91 |
ROIC/WACC1.3
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.88 indicates that AI may have some problems paying its short term obligations.
With a Current ratio value of 0.88, AI is not doing good in the industry: 86.89% of the companies in the same industry are doing better.
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 has a Quick ratio of 0.65. This is amonst the worse of the industry: AI underperforms 86.89% of its industry peers.
AI does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an nice 19.88% over the past year.
The Earnings Per Share has been growing by 11.55% on average over the past years. This is quite good.
Looking at the last year, AI shows a decrease in Revenue. The Revenue has decreased by -1.99% in the last year.
Measured over the past years, AI shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
EPS 1Y (TTM)19.88%
EPS 3Y12.6%
EPS 5Y11.55%
EPS Q2Q%33.27%
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 9.90% yearly.
AI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y9.9%
EPS Next 2Y10.48%
EPS Next 3Y10.45%
EPS Next 5Y9.9%
Revenue Next Year5.5%
Revenue Next 2Y5.23%
Revenue Next 3Y5.47%
Revenue Next 5Y5.1%
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 stable.
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
With a Price/Earnings ratio of 27.75, AI can be considered very expensive at the moment.
AI's Price/Earnings ratio is in line with the industry average.
AI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.92.
With a Price/Forward Earnings ratio of 25.25, AI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AI is on the same level as its industry peers.
AI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 25.25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AI.
AI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.9 | ||
| EV/EBITDA | 14.36 |
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.
AI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.8
PEG (5Y)2.4
EPS Next 2Y10.48%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.91%, AI has a reasonable but not impressive dividend return.
AI's Dividend Yield is comparable with the industry average which is at 3.25.
AI's Dividend Yield is slightly below the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of AI has a limited annual growth rate of 5.86%.
Dividend Growth(5Y)5.86%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
51.97% of the earnings are spent on dividend by AI. 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 2Y10.48%
EPS Next 3Y10.45%
EPA:AI (4/25/2025, 5:36:15 PM)
178.44
-0.14 (-0.08%)
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 Cap103.21B
Analysts81.25
Price Target198.53 (11.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend2.98
Dividend Growth(5Y)5.86%
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)1.08%
PT rev (3m)3.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.59%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.75 | ||
| Fwd PE | 25.25 | ||
| P/S | 3.81 | ||
| P/FCF | 36.9 | ||
| P/OCF | 16.33 | ||
| P/B | 3.84 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 14.36 |
EPS(TTM)6.43
EY3.6%
EPS(NY)7.07
Fwd EY3.96%
FCF(TTM)4.84
FCFY2.71%
OCF(TTM)10.93
OCFY6.13%
SpS46.78
BVpS46.44
TBVpS17.62
PEG (NY)2.8
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 12.31% | ||
| ROCE | 12.72% | ||
| ROIC | 9.63% | ||
| ROICexc | 10.08% | ||
| ROICexgc | 17.03% | ||
| OM | 19.93% | ||
| PM (TTM) | 12.22% | ||
| GM | 63.01% | ||
| FCFM | 10.34% |
ROA(3y)6.1%
ROA(5y)5.92%
ROE(3y)12.2%
ROE(5y)12.34%
ROIC(3y)9.47%
ROIC(5y)8.98%
ROICexc(3y)9.91%
ROICexc(5y)9.43%
ROICexgc(3y)16.92%
ROICexgc(5y)16.28%
ROCE(3y)12.5%
ROCE(5y)11.85%
ROICexcg growth 3Y3.94%
ROICexcg growth 5Y3.85%
ROICexc growth 3Y4.91%
ROICexc growth 5Y4.63%
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 | 0.37 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | 1.25 | ||
| 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 | 3.91 |
F-Score8
WACC7.39%
ROIC/WACC1.3
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)19.88%
EPS 3Y12.6%
EPS 5Y11.55%
EPS Q2Q%33.27%
EPS Next Y9.9%
EPS Next 2Y10.48%
EPS Next 3Y10.45%
EPS Next 5Y9.9%
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 5Y5.1%
EBIT growth 1Y6.38%
EBIT growth 3Y9.02%
EBIT growth 5Y7.28%
EBIT Next Year61.21%
EBIT Next 3Y23.37%
EBIT Next 5Y16.13%
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%