WBAG:AI

Stock Analysis Report

L'Air Liquide S.A

Executive Summary

L'Air Liquide S.A. provides gases, technologies, and services for industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has L'Air Liquide S.A's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

AI

-0.6%

AT Chemicals

-1.3%

AT Market


1 Year Return

39.9%

AI

9.5%

AT Chemicals

3.5%

AT Market

Return vs Industry: AI exceeded the Austrian Chemicals industry which returned 9.5% over the past year.

Return vs Market: AI exceeded the Austrian Market which returned 3.5% over the past year.


Shareholder returns

AIIndustryMarket
7 Day0.1%-0.6%-1.3%
30 Day8.5%2.9%0.4%
90 Day14.2%2.9%-1.2%
1 Year43.1%39.9%12.9%9.5%7.2%3.5%
3 Yearn/a18.6%7.9%27.3%15.8%
5 Yearn/a30.4%10.9%51.3%30.3%

Price Volatility Vs. Market

How volatile is L'Air Liquide S.A's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is L'Air Liquide S.A undervalued compared to its fair value and its price relative to the market?

29.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AI (€139.1) is trading above our estimate of fair value (€103.49)

Significantly Below Fair Value: AI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AI is poor value based on its PE Ratio (29.3x) compared to the Chemicals industry average (16.3x).

PE vs Market: AI is poor value based on its PE Ratio (29.3x) compared to the Austrian market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: AI is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: AI is overvalued based on its PB Ratio (3.5x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is L'Air Liquide S.A forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AI's forecast earnings growth (10.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: AI's earnings (10.1% per year) are forecast to grow faster than the Austrian market (2.3% per year).

High Growth Earnings: AI's earnings are forecast to grow, but not significantly.

Revenue vs Market: AI's revenue (4.3% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: AI's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AI's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has L'Air Liquide S.A performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AI has high quality earnings.

Growing Profit Margin: AI's current net profit margins (10.2%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: AI's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: AI's earnings growth over the past year (6.1%) is below its 5-year average (6.5% per year).

Earnings vs Industry: AI earnings growth over the past year (6.1%) exceeded the Chemicals industry 2.5%.


Return on Equity

High ROE: AI's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is L'Air Liquide S.A's financial position?


Financial Position Analysis

Short Term Liabilities: AI's short term assets (€6.0B) do not cover its short term liabilities (€6.8B).

Long Term Liabilities: AI's short term assets (€6.0B) do not cover its long term liabilities (€17.5B).


Debt to Equity History and Analysis

Debt Level: AI's debt to equity ratio (69.3%) is considered high.

Reducing Debt: AI's debt to equity ratio has increased from 60.8% to 69.3% over the past 5 years.

Debt Coverage: AI's debt is well covered by operating cash flow (35.2%).

Interest Coverage: AI's interest payments on its debt are well covered by EBIT (9.9x coverage).


Balance Sheet

Inventory Level: AI has a high level of physical assets or inventory.

Debt Coverage by Assets: AI's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is L'Air Liquide S.A's current dividend yield, its reliability and sustainability?

1.94%

Current Dividend Yield


Upcoming Dividend Payment

Purchase L'Air Liquide S.A before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.9%marketbottom25%1.6%markettop25%4.6%industryaverage3.0%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: AI's dividend (1.94%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: AI's dividend (1.94%) is low compared to the top 25% of dividend payers in the Austrian market (4.58%).


Stability and Growth of Payments

Stable Dividend: AI's dividends per share have been stable in the past 10 years.

Growing Dividend: AI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.8%), AI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AI's dividends in 3 years are forecast to be covered by earnings (50.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Benoît Potier (62yo)

23.1yrs

Tenure

€5,591,000

Compensation

Mr. Benoît Potier has been the Chief Executive Officer of Air Liquide SA since 1997. Mr. Potier serves as the Chairman and Chief Executive Officer of Air Liquide UK Ltd. He serves as the Chairman of Air Li ...


CEO Compensation Analysis

Compensation vs Market: Benoît's total compensation ($USD6.07M) is above average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: Benoît's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Benoît Potier
Chairman & CEO23.1yrs€5.59m0.079% 51.7m
Fabienne Lecorvaisier
CFO & Executive VP12.1yrsno datano data
Laurent Dublanchet
Group Chief Information Officer5.7yrsno datano data
Aude Rodriguez
Head of Investor Relations4.9yrsno datano data
Armelle Levieux
Vice President Group Human Resources2.9yrsno datano data
Jean-Marc de Royere
Senior Vice President of Corporate Sustainability Program0yrsno datano data
François Jackow
Executive Vice President of Europe2.6yrsno datano data
Guy Salzgeber
Executive Vice President of Frankfurt Hub0yrsno datano data
Michael Graff
Executive Vice President of Americas & Asia Hubs2.6yrsno datano data
François Venet
Senior Vice President of Strategy2.6yrsno datano data

3.9yrs

Average Tenure

57yo

Average Age

Experienced Management: AI's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Benoît Potier
Chairman & CEO23.1yrs€5.59m0.079% 51.7m
Karen Katen
Independent Director11.8yrs€77.00k0.00051% 334.9k
Siân Herbert-Jones
Independent Director8.8yrs€92.00k0.00021% 137.9k
Sin Leng Low
Independent Director5.8yrs€83.00k0.00032% 210.1k
Jean-Paul Agon
Lead Director2.8yrs€99.00k0.00038% 249.5k
Pierre Dufour
Director7.8yrs€80.00k0.020% 13.1m
Thierry Peugeot
Director14.8yrs€72.00k0.00047% 308.6k
Xavier M. Huillard
Independent Director2.8yrs€73.00k0.0020% 1.3m
Annette Winkler
Independent Director5.8yrs€90.00k0.00016% 105.1k
Philippe Dubrulle
Employee Representative Director5.7yrsno datano data

6.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: AI's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

L'Air Liquide S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L'Air Liquide S.A.
  • Ticker: AI
  • Exchange: WBAG
  • Founded: 1902
  • Industry: Industrial Gases
  • Sector: Materials
  • Market Cap: €65.659b
  • Shares outstanding: 471.52m
  • Website: https://www.airliquide.com

Number of Employees


Location

  • L'Air Liquide S.A.
  • 75 quai d'Orsay
  • cedex 07
  • Paris
  • Ile-de-France
  • 75321
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIQU.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 1984
AILADB (Deutsche Boerse AG)ADRDEEURAug 1984
AIQU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AILDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
0NWFLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
AIENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1992
AILXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
AIPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
AIWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
AISWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
AI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992

Biography

L'Air Liquide S.A. provides gases, technologies, and services for industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa. Its Gas & Services segment offers oxygen, nitrogen, argon, hydrogen, and carbon monoxide to the metals, chemicals, refining, and energy industries; and industrial gases, welding equipment, application and safety equipment, and related services to materials, energy, automotive, manufacturing, food, pharmaceuticals, technology, research, and professionals and retail markets. It also produces and distributes medical gases and devices, services, and hygiene products to hospitals and homecare patients; and develops therapeutic gases for resuscitation and pain relief. In addition, this segment produces and distributes healthcare specialty ingredients for the cosmetics, pharmaceutical, and vaccine markets; and provides ultra-pure carrier gases, electronics specialty materials, and advanced materials to manufacturers of semiconductors, flat panel displays, and solar cells. The company’s Engineering & Construction segment designs, develops, and builds industrial gas production plants for third parties; and designs and manufactures plants in the traditional, renewable, and alternative energy sectors. Its Global Markets & Technologies segment focuses on markets relating to energy transition, maritime logistics, and scientific exploration; treats and injects biogas into the energy grid as a local power source; and commercializes technologies for space, aerospace, and scientific exploration. This segment also supplies gases for the off shore oil and gas platforms, off shore wind turbines, and cryogenic transportation. The company also produces bio methane for trucks fueled by bio natural gas. L'Air Liquide S.A. has a technology and commercial agreement with Hydrogenics Corporation to develop Proton Exchange Membrane electrolysis technologies. The company was founded in 1902 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:06
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.