You have probably already heard about Air Liquide, without really knowing what it is or what it offers. Yet it is one of the popular listed companies for investors. Indeed, the Air Liquide share offers a lot of useful information for price analysis. Find out here with a few explanations what its business is and how to correctly analyse its share price before buying or selling Air Liquide shares.
In particular, the diversification of the Air Liquide Group's activities, especially in the renewable energy sector and other promising segments through the signing of contracts with photovoltaic cell producers, will be carefully studied.
The strategic plans put in place by the group are often communicated in detail to the public. It is therefore possible to consult them and compare them with the company's actual results in order to determine signals of increases or decreases in value.
The health sector, which represents a privileged target for the group, is also to be followed with the greatest interest.
Naturally, we will also keep a close eye on the development of the group's activities in emerging countries through the signing of contracts or the creation of partnerships.
Global economic health will also influence the price of this stock and you should therefore take this into account in your fundamental analysis before buying or selling Air Liquide shares.
Finally, and given the very specific business sector in which Air Liquide operates, the group's investments in research and development will be closely monitored.
Air Liquide is a French company specialised in the production of industrial and medical gases. It is also one of the leaders in this sector internationally. However, its activity covers various fields, mainly industrial and medical gases such as oxygen, nitrogen, hydrogen and synthesis gas, but also equipment and services for fluid systems control, management of chemical gases and liquids for 95.7% of its turnover, but also welding and cutting equipment, or fine chemicals products for 2.3% of turnover or diving products directly related to its main activity. The remaining 2% of the group's sales, i.e. 2%, relate to engineering and construction of gas production plants and the manufacture of advanced technology products.
Air Liquide's market is mainly European but also affects the rest of the world. Thus, only 12.9% of its turnover is generated in France and 23.6% for the rest of Europe. It also generates 32.9% of its revenue in the United States, 21.7% in Asia-Pacific and 3.1% in Africa and the Middle East.
Photo credits: Konushna, CC BY-SA 3.0 via Wikimedia Commons
The Air Liquide Group is undoubtedly the pioneer in its sector of activity but also the world leader in this field. However, although its direct competition is limited to three major companies, its market shares can at any time drop to the benefit of one of them and it is therefore more than important to know them. Here are the details of Air Liquide's main competitors.
Linde AG, a German gas and engineering group, is Air Liquide's main competitor. Moreover, it is also based in Europe, which makes it a serious competitor to watch closely.
Praxair is also a serious competitor of Air Liquide. It is indeed the largest industrial gas supply company in North and South America and one of the largest in the world in this sector.
Air Products and Chemicals is an American industrial group of international stature, specialising in industrial and medical gases. It is headquartered in the United States in Allentown, Pennsylvania in the Lehigh Valley region where it is one of the largest employers.
Over the last few years, the Air Liquide Group has also set up well-thought-out partnerships with other major companies, which we invite you to discover here in more detail.
In 2013 in Japan, Air Liquide signed a partnership with Toyota Tsusho for the supply of hydrogen to electric vehicles.
The partners Air Liquide and Carrefour inaugurated a new clean energy station in Servon in 2017. It will supply the transporters with bioGNV and nitrogen for the refrigeration units.
Air Liquide and ArcelorMittal, the world's leading steel producer recently signed two long-term renewal contracts for the supply of oxygen, nitrogen and argon to ArcelorMittal's production sites located in the industrial port areas of Fos-sur-Mer and Dunkirk in France.
In 2019, Air Liquide has also set up a partnership with the steel group PAO Severstal for the supply of oxygen, nitrogen and argon in Russia. As part of this agreement, Air Liquide will pay €50 million to build a state-of-the-art Air Separation Unit or ASU to improve the energy efficiency and environmental footprint of Severstal's production process.
The same year, the group also announced the establishment of a partnership of great importance in China with a memorandum of understanding with the mining and chemical group Yankuang with the aim of developing the hydrogen-energy sector in the country.
The Air Liquide share is an asset with many qualities as an online investment medium.
Of course, the Air Liquide share does not only present advantages for investors and it is also necessary to highlight some of the company's weak points before buying or selling this stock
Air Liquide's capital, in other words, its shareholding, is distributed among different types of shareholders. Thus, as of May 2020, 32% of the group's capital is held by individual shareholders. 18% of this capital belongs to French institutional investors and the remaining 50% is held by foreign institutional investors. Of course, this distribution may change over time.
Air Liquide has distributed bonus shares on numerous occasions, the last of which took place in 2019. The Group proceeds in this way approximately every two years by allocating one bonus share for every ten shares owned on average, except in 2002 with one bonus share for every eight shares owned and in 2010 with one bonus share for every fifteen shares owned. In 2016 and due to the Airgas takeover, the group did not offer any bonus shares.
Air Liquide's policy is to pay an annual dividend that has grown by 8.7% per year over the last 30 years, i.e. between 40 and 55% of the Group's net profit, the remainder being used for the development of the company with industrial investments, buy-outs and innovation. Air Liquide also pays a loyalty bonus of 10% additional dividends for shareholders who have held their shares for more than two years.
The Air Liquide share price can be influenced by several factors that can cause it to fall, such as the economic situation. Air Liquide is a company that operates in many economic sectors, such as industry, health, energy, the environment, etc. Therefore, any deterioration in the economic conditions worldwide or in any of these sectors may have a negative impact on Air Liquide's business and results, which could result in a decline in the share price. Air Liquide uses many raw materials to produce its products, including industrial gases. Fluctuations in the prices of these raw materials may have an impact on Air Liquide's production costs and therefore on its financial results and share price.Air Liquide is a world leader in industrial gases and related services, but faces strong competition in its markets. Changes in the competitive market may affect Air Liquide's performance and, consequently, its share price.
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