AIR LIQUIDE SA (AI.PA)
FR0000120073 - Common Stock
We assign a fundamental rating of 5 out of 10 to AI. AI was compared to 63 industry peers in the Chemicals industry. While AI has a great profitability rating, 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
AI had positive earnings in the past year.
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 77.42% of the companies in the same industry.
AI's Return On Equity of 12.66% is fine compared to the rest of the industry. AI outperforms 79.03% of its industry peers.
AI has a Return On Invested Capital of 9.58%. This is amongst the best in the industry. AI outperforms 82.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AI is in line with the industry average of 7.81%.
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 has a Profit Margin of 11.15%. This is amongst the best in the industry. AI outperforms 88.71% of its industry peers.
AI's Profit Margin has improved in the last couple of years.
AI has a better Operating Margin (18.36%) than 93.55% of its industry peers.
In the last couple of years the Operating Margin of AI has grown nicely.
With an excellent Gross Margin value of 59.62%, AI belongs to the best of the industry, outperforming 90.32% 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 | 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
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AI has more shares outstanding
AI has a better debt/assets ratio than last year.
2.2 Solvency
AI has an Altman-Z score of 3.82. 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 3.82, AI belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
The Debt to FCF ratio of AI is 4.19, which is a neutral value as it means it would take AI, 4.19 years of fcf income to pay off all of its debts.
AI has a Debt to FCF ratio of 4.19. This is in the better half of the industry: AI outperforms 75.81% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that AI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, AI is in line with its industry, outperforming 53.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.36
WACC7.06%
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.
The Current ratio of AI (0.87) is worse than 95.16% of its industry peers.
A Quick Ratio of 0.64 indicates that AI may have some problems paying 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 91.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
AI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.58%.
The Earnings Per Share has been growing slightly by 5.65% 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)1.58%
EPS 3Y4.57%
EPS 5Y5.65%
EPS Q2Q%-14.98%
Revenue 1Y (TTM)-7.77%
Revenue growth 3Y10.46%
Revenue growth 5Y5.61%
Sales Q2Q%-13.35%
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 11.59% on average per year.
AI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y20.93%
EPS Next 2Y15.69%
EPS Next 3Y13.52%
EPS Next 5Y11.59%
Revenue Next Year0.5%
Revenue Next 2Y2.94%
Revenue Next 3Y3.51%
Revenue Next 5Y4.27%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.22, which means the current valuation is very expensive for AI.
AI's Price/Earnings is on the same level as the industry average.
AI is valuated rather expensively when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.80, AI can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AI is valued a bit more expensive than the industry average as 66.13% of the companies are valued more cheaply.
AI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.22 | ||
| Fwd PE | 25.8 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.62 | ||
| EV/EBITDA | 13.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AI has an outstanding profitability rating, which may justify a higher PE ratio.
AI's earnings are expected to grow with 13.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)5.52
EPS Next 2Y15.69%
EPS Next 3Y13.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, AI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.67, AI has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, AI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
51.37% 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.
DP51.37%
EPS Next 2Y15.69%
EPS Next 3Y13.52%
AIR LIQUIDE SA
EPA:AI (7/26/2024, 7:00:00 PM)
167.32
+2.5 (+1.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap96.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min 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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Revenue beat(16)
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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 | 31.22 | ||
| Fwd PE | 25.8 | ||
| 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)5.52
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)
High Growth Momentum
Growth
EPS 1Y (TTM)1.58%
EPS 3Y4.57%
EPS 5Y
EPS Q2Q%
EPS Next Y20.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.77%
Revenue growth 3Y10.46%
Revenue growth 5Y
Sales 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