L'Air Liquide S.A.
L'Air Liquide S.A. Fundamental Analysis
L'Air Liquide S.A. (AIQUF) shows moderate financial fundamentals with a PE ratio of 28.20, profit margin of 13.06%, and ROE of 13.87%. The company generates $27.0B in annual revenue with weak year-over-year growth of -1.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AIQUF's fundamental strength across five key dimensions:
Efficiency Score
WeakAIQUF struggles to generate sufficient returns from assets.
Valuation Score
WeakAIQUF trades at a premium to fair value.
Growth Score
WeakAIQUF faces weak or negative growth trends.
Financial Health Score
ExcellentAIQUF maintains a strong and stable balance sheet.
Profitability Score
WeakAIQUF struggles to sustain strong margins.
Key Financial Metrics
Is AIQUF Expensive or Cheap?
P/E Ratio
AIQUF trades at 28.20 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AIQUF's PEG of 13.70 indicates potential overvaluation.
Price to Book
The market values L'Air Liquide S.A. at 3.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.99 times EBITDA. This signals the market has high growth expectations.
How Well Does AIQUF Make Money?
Net Profit Margin
For every $100 in sales, L'Air Liquide S.A. keeps $13.06 as profit after all expenses.
Operating Margin
Core operations generate 20.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.87 in profit for every $100 of shareholder equity.
ROA
L'Air Liquide S.A. generates $6.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
L'Air Liquide S.A. produces operating cash flow of $6.49B, showing steady but balanced cash generation.
Free Cash Flow
L'Air Liquide S.A. produces free cash flow of $2.64B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.56 in free cash annually.
FCF Yield
AIQUF converts 2.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How AIQUF Stacks Against Its Sector Peers
| Metric | AIQUF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.20 | 24.91 | Worse (Expensive) |
| ROE | 13.87% | 840.00% | Weak |
| Net Margin | 13.06% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.55 | Neutral |
| Current Ratio | 1.14 | 4.94 | Neutral |
| ROA | 6.78% | -4176.00% (disorted) | Weak |
AIQUF outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews L'Air Liquide S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.09%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
45.89%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
39.24%
Industry Style: Cyclical, Commodity, Value
High Growth