Air Liquide Profit Margin vs. Current Valuation
| AIL Stock | EUR 156.38 0.44 0.28% |
For Air Liquide profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Air Liquide to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Air Liquide SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Air Liquide's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Air Liquide SA over time as well as its relative position and ranking within its peers.
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Air Liquide SA Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Air Liquide's current stock value. Our valuation model uses many indicators to compare Air Liquide value to that of its competitors to determine the firm's financial worth. Air Liquide SA is number one stock in profit margin category among its peers. It also is the top company in current valuation category among its peers reporting about 925,388,748,416 of Current Valuation per Profit Margin. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Air Liquide's earnings, one of the primary drivers of an investment's value.Air Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Air Liquide |
| = | 0.09 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Air Liquide |
| = | 85.32 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Air Current Valuation vs Competition
Air Liquide SA is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Chemicals industry is presently estimated at about 121.38 Billion. Air Liquide totals roughly 85.32 Billion in current valuation claiming about 70% of stocks in Chemicals industry.
Air Liquide Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Air Liquide, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Air Liquide will eventually generate negative long term returns. The profitability progress is the general direction of Air Liquide's change in net profit over the period of time. It can combine multiple indicators of Air Liquide, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
LAir 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. The company was founded in 1902 and is headquartered in Paris, France. AIR LIQUIDE operates under Chemicals classification in Germany and is traded on Frankfurt Stock Exchange. It employs 66000 people.
Air Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Air Liquide. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Air Liquide position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Air Liquide's important profitability drivers and their relationship over time.
Use Air Liquide in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Air Liquide position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Air Liquide will appreciate offsetting losses from the drop in the long position's value.Air Liquide Pair Trading
Air Liquide SA Pair Trading Analysis
The ability to find closely correlated positions to Air Liquide could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Air Liquide when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Air Liquide - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Air Liquide SA to buy it.
The correlation of Air Liquide is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Air Liquide moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air Liquide SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Air Liquide can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Air Liquide position
In addition to having Air Liquide in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Most Shorted Equities Thematic Idea Now
Most Shorted Equities
Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 217 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Most Shorted Equities Theme or any other thematic opportunities.
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Other Information on Investing in Air Stock
To fully project Air Liquide's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Air Liquide SA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Air Liquide's income statement, its balance sheet, and the statement of cash flows.