Business Case: Industrial Gas Sector – Big 3 Comparison
1️⃣ The Rule
If a strategy cannot be understood in 15 seconds,
it is not clear enough for board decisions.
RapidKnowHow Standard:
SP (Strategic Power) = Core Assets × (Internal Efficiency + External Trust)²
Where:
Internal Efficiency = ROCE + Free Cash Flow Discipline
External Trust = Balance Sheet Strength + Market Stability
That’s the physics.
2️⃣ The Question
Which company delivers:
• Sustainable stakeholder value
• Consistent capital discipline
• Strong multiplier
• No hidden bombs
3️⃣ 15-Second Structural Comparison
LINDE
Core Assets: Strong global installed base
Internal Efficiency: Very high (mid-20% ROC discipline)
Free Cash Flow: Strong and positive
External Trust: Stable balance sheet + high market credibility
Hidden Bomb Risk: Low
Position: Sustainable Value Quadrant
Board Message:
Disciplined capital compounding engine.
AIR LIQUIDE
Core Assets: Strong, diversified
Internal Efficiency: Moderate-high (~10% ROCE)
Free Cash Flow: Stable positive
External Trust: Conservative balance sheet
Hidden Bomb Risk: Low
Position: Stable Compounding Zone
Board Message:
Reliable, conservative, lower volatility.
AIR PRODUCTS
Core Assets: Strong asset base
Internal Efficiency: Under pressure
Free Cash Flow: Volatile / recently negative
Capex Intensity: Elevated (large hydrogen bets)
External Trust: More volatile
Hidden Bomb Risk: Higher (capital execution exposure)
Position: Efficient but Risk-Exposed
Board Message:
Higher capital risk, execution-sensitive.
4️⃣ 15-Second Ranking (Structural, Not Emotional)
1️⃣ Linde – Strongest Strategic Power
2️⃣ Air Liquide – Stable, conservative compounding
3️⃣ Air Products – Elevated capital execution risk
No forecasting.
No narrative.
Structure only.
5️⃣ What Boards Should Look For
The hidden bombs in capital-intensive industries are:
• Capex growth > FCF growth
• Debt growth > ROCE
• Mega-project concentration
• Political concentration
• Multiplier erosion
If those appear:
Strategic Power declines rapidly.
6️⃣ The Institutional Insight
RapidKnowHow does not provide:
50-page analyst decks.
RapidKnowHow provides:
Immediate structural positioning.
If deeper analysis is required,
it can be built.
Clarity comes first.
