AIR LIQUIDE SA (AI.PA)

FR0000120073 - Common Stock

159.28  -4 (-2.45%)

Fundamental Rating

5

AI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Chemicals industry. While AI has a great profitability rating, 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.



9

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.
AI had positive earnings in each of the past 5 years.
In the past 5 years AI always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of AI (6.37%) is better than 80.65% of its industry peers.
AI has a better Return On Equity (12.66%) than 80.65% of its industry peers.
AI has a better Return On Invested Capital (9.58%) than 83.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AI is in line with the industry average of 7.41%.
The 3 year average ROIC (8.90%) for AI is below the current ROIC(9.58%), indicating increased profibility in the last year.
Industry RankSector 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.
The Operating Margin of AI (18.36%) is better than 93.55% of its industry peers.
AI's Operating Margin has improved in the last couple of years.
AI has a better Gross Margin (59.62%) than 90.32% of its industry peers.
In the last couple of years the Gross Margin of AI has remained more or less at the same level.
Industry RankSector 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%

4

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

An Altman-Z score of 3.58 indicates that AI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.58, AI belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 4.19, AI is doing good in the industry, outperforming 77.42% 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.
With a Debt to Equity ratio value of 0.41, AI perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 4.19
Altman-Z 3.58
ROIC/WACC1.41
WACC6.81%

2.3 Liquidity

A Current Ratio of 0.87 indicates that AI may have some problems paying 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 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 has a worse Quick ratio (0.64) than 91.94% of its industry peers.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.64

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.74% over the past year.
The Earnings Per Share has been growing slightly by 7.69% on average over the past years.
The Revenue has decreased by -7.77% in the past year.
The Revenue has been growing slightly by 5.61% on average over the past years.
EPS 1Y (TTM)11.74%
EPS 3Y7.94%
EPS 5Y7.69%
EPS Q2Q%-6.47%
Revenue 1Y (TTM)-7.77%
Revenue growth 3Y10.46%
Revenue growth 5Y5.61%
Sales Q2Q%-13.35%

3.2 Future

The Earnings Per Share is expected to grow by 11.40% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.13% on average over the next years.
EPS Next Y21.01%
EPS Next 2Y15.78%
EPS Next 3Y13.53%
EPS Next 5Y11.4%
Revenue Next Year0.25%
Revenue Next 2Y2.97%
Revenue Next 3Y3.54%
Revenue Next 5Y4.13%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.00, which means the current valuation is very expensive for AI.
Compared to the rest of the industry, the Price/Earnings ratio of AI is on the same level as its industry peers.
AI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.31, which indicates a rather expensive current valuation of AI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AI indicates a slightly more expensive valuation: AI is more expensive than 66.13% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.91. AI is around the same levels.
Industry RankSector Rank
PE 27
Fwd PE 22.31

4.2 Price Multiples

AI's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AI.
Industry RankSector Rank
P/FCF 29.1
EV/EBITDA 12.66

4.3 Compensation for Growth

AI's 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.
A more expensive valuation may be justified as AI's earnings are expected to grow with 13.53% in the coming years.
PEG (NY)1.28
PEG (5Y)3.51
EPS Next 2Y15.78%
EPS Next 3Y13.53%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.73%, AI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.09, AI has a dividend in line with its industry peers.
AI's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.73%

5.2 History

On average, the dividend of AI grows each year by 6.17%, which is quite nice.
Dividend Growth(5Y)6.17%
Div Incr Years5
Div Non Decr Years5

5.3 Sustainability

AI pays out 51.37% of its income as dividend. 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 2Y15.78%
EPS Next 3Y13.53%

AIR LIQUIDE SA

EPA:AI (6/14/2024, 7:00:00 PM)

159.28

-4 (-2.45%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap83.49B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.73%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 27
Fwd PE 22.31
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)1.28
PEG (5Y)3.51
Profitability
Industry RankSector 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 RankSector 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)11.74%
EPS 3Y7.94%
EPS 5Y
EPS Q2Q%
EPS Next Y21.01%
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