Air Liquide convinces investors Air Liquide has won over investors.

Last Updated: 21. Februar 2024By

French gas manufacturer Air Liquide was able to convince investors yesterday with its numbers. The stock jumped to a new all-time high, which is certainly not the last one. Because the company is well positioned in one of the major future trends.

Brief profile of Air Liquide Air Liquide is one of the world’s leading industrial gas companies. The company was founded in Paris in 1902 and employs approximately 67,000 people. Its main products are industrial and medical gases. In addition, the French corporation supplies control devices and offers industrial and medical services related to its products. In addition, Air Liquide is one of the key players in the development of a European hydrogen network.

Numbers for 2023 impress Yesterday, Air Liquide presented its figures for the year 2023, which were well received by investors. According to this, the group increased its comparable sales by almost 4% to 27.6 billion euros. This was in line with expectations.

There was a positive surprise, however, in terms of profit. This climbed by +12% to 3.1 billion euros. Here, the French benefited from efficiency measures and price increases and were able to increase profit margins.

Optical outlook A significant part of the positive reaction to the company’s figures (+5% daily gain) was the outlook given by management. Air Liquide CEO Francois Jackow announced further improvement of profit margins in the current year. From 2022 to 2025, the operating margin is expected to improve by 3.2 percentage points, twice as much as previously planned. Air Liquide also plans to continue its steady growth in sales.

Dividend to be increased once again There was also good news for investors in terms of dividends. Here, the French want to increase the payout from 2.95 to 3.20 euros.

When it comes to dividends, Air Liquide can score points with continuity: for over 30 years, the French have either increased their dividend or kept it at the previous year’s level.

Stock jumps to a new all-time high Investors were very pleased and sent the Air Liquide stock to a new all-time high on high trading volumes. From a technical chart perspective, this is a strong buying signal. If there are follow-up purchases in the coming days, the share price could quickly rise from its current level of around 185 euros to the round mark of 200 euros.

Hydrogen beneficiary with a favorable risk-reward ratio No one in Europe understands the handling and distribution of hydrogen better than Air Liquide, which has put itself in an excellent position through numerous cooperations to profit from the hydrogen boom in the long term. It will certainly take some time for the hydrogen business to get up to full speed. But the beginning has been made and the positive impact on growth is likely to increase in the coming years.

Of course, the stock of Air Liquide is not as exciting as small hydrogen stocks. But here, as an investor, you are investing with significantly higher security. This makes the stock an attractive long-term basic investment in the hydrogen trend, especially since the valuation is slightly lower than that of competitor Linde.