AIR LIQUIDE SA (AIL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AIL - FR0000120073 - Common Stock
156.76 EUR
-0.4 (-0.25%)
AIL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the Chemicals industry. While AIL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AIL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AIL had positive earnings in the past year.
- AIL had a positive operating cash flow in the past year.
- In the past 5 years AIL has always been profitable.
- Each year in the past 5 years AIL had a positive operating cash flow.
1.2 Ratios
- AIL has a Return On Assets of 6.70%. This is in the better half of the industry: AIL outperforms 74.65% of its industry peers.
- AIL's Return On Equity of 13.49% is fine compared to the rest of the industry. AIL outperforms 76.06% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.87%, AIL belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AIL is above the industry average of 7.19%.
- The 3 year average ROIC (9.47%) for AIL 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
- With an excellent Profit Margin value of 12.22%, AIL belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
- In the last couple of years the Profit Margin of AIL has grown nicely.
- With an excellent Operating Margin value of 19.93%, AIL belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
- AIL's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 63.01%, AIL belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
- In the last couple of years the Gross Margin of AIL 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AIL is still creating some value.
- AIL has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for AIL has been increased compared to 5 years ago.
- Compared to 1 year ago, AIL has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.62 indicates that AIL is not in any danger for bankruptcy at the moment.
- AIL has a better Altman-Z score (3.62) than 70.42% of its industry peers.
- AIL has a debt to FCF ratio of 4.60. This is a neutral value as AIL would need 4.60 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 4.60, AIL is doing good in the industry, outperforming 78.87% of the companies in the same industry.
- AIL has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.47, AIL perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.33
WACC7.42%
2.3 Liquidity
- A Current Ratio of 0.84 indicates that AIL may have some problems paying its short term obligations.
- With a Current ratio value of 0.84, AIL is not doing good in the industry: 84.51% of the companies in the same industry are doing better.
- A Quick Ratio of 0.61 indicates that AIL may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.61, AIL is doing worse than 85.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- AIL 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, AIL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.55% on average per year.
- AIL shows a decrease in Revenue. In the last year, the revenue decreased by -1.99%.
- Measured over the past years, AIL shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
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
- AIL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.14% yearly.
- AIL 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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.00, which means the current valuation is very expensive for AIL.
- AIL's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.60. AIL is around the same levels.
- A Price/Forward Earnings ratio of 21.16 indicates a rather expensive valuation of AIL.
- The rest of the industry has a similar Price/Forward Earnings ratio as AIL.
- When comparing the Price/Forward Earnings ratio of AIL to the average of the S&P500 Index (25.83), we can say AIL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 21.16 |
4.2 Price Multiples
- AIL's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIL indicates a somewhat cheap valuation: AIL is cheaper than 60.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.99 | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AIL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.49
PEG (5Y)2.17
EPS Next 2Y7.33%
EPS Next 3Y8.28%
5. Dividend
5.1 Amount
- AIL has a Yearly Dividend Yield of 2.10%.
- Compared to an average industry Dividend Yield of 2.45, AIL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AIL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
- The dividend of AIL has a limited annual growth rate of 5.86%.
Dividend Growth(5Y)5.86%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- AIL pays out 59.10% of its income as dividend. This is a bit on the high side, but may be sustainable.
- AIL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.1%
EPS Next 2Y7.33%
EPS Next 3Y8.28%
AIR LIQUIDE SA / AIL.DE FAQ
What is the fundamental rating for AIL stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIL.DE.
What is the valuation status for AIL stock?
ChartMill assigns a valuation rating of 3 / 10 to AIR LIQUIDE SA (AIL.DE). This can be considered as Overvalued.
How profitable is AIR LIQUIDE SA (AIL.DE) stock?
AIR LIQUIDE SA (AIL.DE) has a profitability rating of 9 / 10.
Can you provide the financial health for AIL stock?
The financial health rating of AIR LIQUIDE SA (AIL.DE) is 4 / 10.
How sustainable is the dividend of AIR LIQUIDE SA (AIL.DE) stock?
The dividend rating of AIR LIQUIDE SA (AIL.DE) is 4 / 10 and the dividend payout ratio is 59.1%.