AIR LIQUIDE SA (AI.PA)
FR0000120073 - Common Stock
Taking everything into account, AI scores 5 out of 10 in our fundamental rating. AI was compared to 65 industry peers in the Chemicals industry. While AI belongs to the best of the industry regarding profitability, 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.
In the past year AI had a positive cash flow from operations.
AI had positive earnings in each of the past 5 years.
Each year in the past 5 years AI had a positive operating cash flow.
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.
AI has a better Return On Equity (12.66%) than 80.95% of its industry peers.
AI has a better Return On Invested Capital (9.58%) than 84.13% of its industry peers.
AI had an Average Return On Invested Capital over the past 3 years of 8.90%. This is in line with the industry average of 7.40%.
The last Return On Invested Capital (9.58%) for AI is above the 3 year average (8.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 12.66% | ||
| ROIC | 9.58% |
ROA(3y)5.81%
ROA(5y)5.67%
ROE(3y)12.09%
ROE(5y)12.25%
ROIC(3y)8.9%
ROIC(5y)8.52%
1.3 Margins
AI's Profit Margin of 11.15% is amongst the best of the industry. AI outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of AI has grown nicely.
Looking at the Operating Margin, with a value of 18.36%, AI belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of AI has grown nicely.
AI has a Gross Margin of 59.62%. This is amongst the best in the industry. AI outperforms 92.06% of its industry peers.
AI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.36% | ||
| PM (TTM) | 11.15% | ||
| GM | 59.62% |
OM growth 3Y-0.26%
OM growth 5Y2.26%
PM growth 3Y-2.11%
PM growth 5Y2.08%
GM growth 3Y-2.77%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AI is still 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 3.88. This indicates that AI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AI (3.88) is better than 85.71% of its industry peers.
AI has a debt to FCF ratio of 4.19. This is a neutral value as AI would need 4.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.19, AI is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
AI has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
AI has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.41
WACC6.78%
2.3 Liquidity
AI has a Current Ratio of 0.87. 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 Current ratio of 0.87 is on the low side compared to the rest of the industry. AI is outperformed by 93.65% of its industry peers.
AI has a Quick Ratio of 0.87. 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 0.64 is on the low side compared to the rest of the industry. AI is outperformed by 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
AI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.74%, which is quite good.
The Earnings Per Share has been growing slightly by 7.69% on average over the past years.
Looking at the last year, AI shows a decrease in Revenue. The Revenue has decreased by -7.77% in the last year.
AI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.61% yearly.
EPS 1Y (TTM)11.74%
EPS 3Y7.94%
EPS 5Y7.69%
EPS growth Q2Q-6.47%
Revenue 1Y (TTM)-7.77%
Revenue growth 3Y10.46%
Revenue growth 5Y5.61%
Revenue growth Q2Q-13.35%
3.2 Future
The Earnings Per Share is expected to grow by 11.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.69% on average over the next years.
EPS Next Y20.58%
EPS Next 2Y15.61%
EPS Next 3Y13.74%
EPS Next 5Y11.65%
Revenue Next Year1.98%
Revenue Next 2Y3.77%
Revenue Next 3Y4.26%
Revenue Next 5Y6.69%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.75, the valuation of AI can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AI.
Compared to an average S&P500 Price/Earnings ratio of 25.25, AI is valued a bit more expensive.
The Price/Forward Earnings ratio is 25.50, which means the current valuation is very expensive for AI.
AI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, AI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.75 | ||
| Fwd PE | 25.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AI is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.09 | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
AI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AI may justify a higher PE ratio.
A more expensive valuation may be justified as AI's earnings are expected to grow with 13.74% in the coming years.
PEG (NY)1.49
PEG (5Y)4
EPS Next 2Y15.61%
EPS Next 3Y13.74%
5. Dividend
5.1 Amount
AI has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.11, AI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, AI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
The dividend of AI is nicely growing with an annual growth rate of 6.17%!
Dividend Growth(5Y)6.17%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
51.37% 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.
DP51.37%
EPS Next 2Y15.61%
EPS Next 3Y13.74%
AIR LIQUIDE SA
EPA:AI (4/25/2024, 2:52:15 PM)
181.4
-4.74 (-2.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap94.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.75 | ||
| Fwd PE | 25.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.49
PEG (5Y)4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 12.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.36% | ||
| PM (TTM) | 11.15% | ||
| GM | 59.62% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.74%
EPS 3Y7.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.77%
Revenue growth 3Y10.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y