Air LiquideXSWX:AI1 98 Return-on-Tangible-Equity is 34.30% as of Dec. 2025, which is 35% below its 10-year median of 52.68. GuruFocus rates XSWX:AI1 with a GF Score™ of 98/100 and a GF Value™ of CHF138.15. The stock has 6 warning signs investors should review. Among 1,575 Chemicals companies, Air Liquide ranks better than 95.75% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Air Liquide's annualized net income for the quarter that ended in Dec. 2025 was CHF3,204 Mil. Air Liquide's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF9,342 Mil. Therefore, Air Liquide's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 34.30%.
The historical rank and industry rank for Air Liquide's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:AI1'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 33.47 Med: 52.68 Max: 155.38
Current: 34.99
During the past 13 years, Air Liquide's highest Return-on-Tangible-Equity was 155.38%. The lowest was 33.47%. And the median was 52.68%.
XSWX:AI1's Return-on-Tangible-Equity is ranked better than 95.75% of 1575
companies
in the Chemicals industry
Industry Median: 5.7
vs XSWX:AI1: 34.99
Air Liquide (XSWX:AI1) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Air Liquide Return-on-Tangible-Equity Related Terms
Air Liquide Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Air Liquide's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:AI1 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Air Liquide's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air Liquide Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Air Liquide's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Air Liquide's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.30% mean?
Air Liquide (XSWX:AI1) has a Return-on-Tangible-Equity of 34.30% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air Liquide and its competitors. This is 35% below median its historical median of 52.68. Over the past decade, Air Liquide's Return-on-Tangible-Equity has ranged from 33.47 to 155.38. According to the industry distribution chart, Air Liquide ranks #67 out of 1575 companies in the Chemicals industry, placing it in the top 4.3%.
Is Air Liquide's Return-on-Tangible-Equity too high?
Air Liquide's current Return-on-Tangible-Equity of 34.30% is 35% below median its 10-year median of 52.68. Over the past 10 years, this metric has ranged from a low of 33.47 to a high of 155.38. The Chemicals industry median Return-on-Tangible-Equity is 5.70. Air Liquide's value of 34.30% is 501.8% above this industry median. Based on the distribution chart, Air Liquide ranks #67 out of 1575 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Air Liquide has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Air Liquide's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Air Liquide ranks #67 out of 1575 companies for Return-on-Tangible-Equity. This places Air Liquide in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.70. Air Liquide's value of 34.30% is 501.8% above this benchmark. Historically, Air Liquide's own Return-on-Tangible-Equity has ranged from 33.47 to 155.38 over the past decade. While the company's 10-year median is 52.68 vs. the industry median of 5.70, Air Liquide has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.70, based on 1,575 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Liquide's current Return-on-Tangible-Equity of 34.30% is 501.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air Liquide and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Liquide's current Return-on-Tangible-Equity is 34.30%, which is 35% below median its own 10-year median of 52.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Liquide stock overvalued right now?
Air Liquide (XSWX:AI1) has a current Return-on-Tangible-Equity of 34.30%. The stock's GF Value™ is CHF138.15, compared to a current price of CHF157.66 — trading 14.1% above its estimated fair value. The current Return-on-Tangible-Equity is 34.30%, which is 35% below median its 10-year median of 52.68 and 501.8% above the Chemicals industry median of 5.70. Air Liquide's overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Air Liquide (XSWX:AI1), the current Return-on-Tangible-Equity is 34.30% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air Liquide (XSWX:AI1) Overvalued in 2026?
Based on GuruFocus' analysis, Air Liquide stock appears to be overvalued.
The current stock price of CHF157.66 is trading 14.1% above its estimated GF Value™ of CHF138.15.
Key valuation signals for XSWX:AI1:
Return-on-Tangible-Equity: 34.30% (35% below median its 10-year median of 52.68)
GF Value™: CHF138.15 vs. price of CHF157.66 (14.1% above fair value)
Industry Position: 501.8% above the Chemicals median (#67 of 1575)
No single metric tells the full story. See the XSWX:AI1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1902, Air Liquide is one of the leading industrial gas companies in the world, serving over 3.8 million customers in 78 countries. The company generated approximately EUR 27.9 billion of revenue in 2025, serving a wide range of industries, including chemicals, energy, healthcare, food and beverage, and electronics. Air Liquide employs approximately 65,000 people.
98GF Score
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