AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
FRA:AP3 - Deutsche Boerse Ag - US0091581068 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to AP3. AP3 was compared to 68 industry peers in the Chemicals industry. While AP3 belongs to the best of the industry regarding profitability, there are concerns on its financial health. AP3 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AP3 had positive earnings in the past year.
AP3 had a positive operating cash flow in the past year.
Each year in the past 5 years AP3 has been profitable.
Each year in the past 5 years AP3 had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.94%, AP3 is doing good in the industry, outperforming 70.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.43%, AP3 is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
AP3 has a Return On Invested Capital of 6.75%. This is in the better half of the industry: AP3 outperforms 70.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AP3 is in line with the industry average of 6.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.43% | ||
| ROIC | 6.75% |
ROA(3y)8.39%
ROA(5y)8.09%
ROE(3y)18.57%
ROE(5y)17.37%
ROIC(3y)7.56%
ROIC(5y)7.62%
1.3 Margins
AP3 has a better Profit Margin (12.76%) than 92.65% of its industry peers.
AP3's Profit Margin has improved in the last couple of years.
The Operating Margin of AP3 (23.99%) is better than 95.59% of its industry peers.
AP3's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.95%, AP3 is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of AP3 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.99% | ||
| PM (TTM) | 12.76% | ||
| GM | 31.95% |
OM growth 3Y3.42%
OM growth 5Y-0.02%
PM growth 3Y15.88%
PM growth 5Y9.9%
GM growth 3Y2.26%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AP3 is destroying value.
AP3 has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AP3 has been increased compared to 5 years ago.
The debt/assets ratio for AP3 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.79 indicates that AP3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.79, AP3 is doing good in the industry, outperforming 70.59% of the companies in the same industry.
AP3 has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
AP3 has a worse Debt to Equity ratio (1.02) than 77.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.79 |
ROIC/WACC0.82
WACC8.21%
2.3 Liquidity
AP3 has a Current Ratio of 1.00. This is a bad value and indicates that AP3 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, AP3 is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
AP3 has a Quick Ratio of 1.00. This is a bad value and indicates that AP3 is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AP3 (0.85) is worse than 69.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
AP3 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.32%.
The Earnings Per Share has been growing by 8.62% on average over the past years. This is quite good.
The Revenue has decreased by -1.09% in the past year.
Measured over the past years, AP3 shows a small growth in Revenue. The Revenue has been growing by 6.29% on average per year.
EPS 1Y (TTM)4.32%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-5.61%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
3.2 Future
AP3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.56% yearly.
Based on estimates for the next years, AP3 will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
EPS Next Y-2.65%
EPS Next 2Y2.54%
EPS Next 3Y4.61%
EPS Next 5Y7.56%
Revenue Next Year-1.28%
Revenue Next 2Y1.71%
Revenue Next 3Y3.29%
Revenue Next 5Y7.62%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.53, the valuation of AP3 can be described as rather expensive.
AP3's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.29. AP3 is around the same levels.
AP3 is valuated rather expensively with a Price/Forward Earnings ratio of 22.18.
AP3's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.74, AP3 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 22.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AP3 indicates a slightly more expensive valuation: AP3 is more expensive than 63.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
AP3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.73
EPS Next 2Y2.54%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.45%, AP3 has a reasonable but not impressive dividend return.
AP3's Dividend Yield is a higher than the industry average which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.37, AP3 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of AP3 is nicely growing with an annual growth rate of 9.29%!
Dividend Growth(5Y)9.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
102.68% of the earnings are spent on dividend by AP3. This is not a sustainable payout ratio.
The dividend of AP3 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP102.68%
EPS Next 2Y2.54%
EPS Next 3Y4.61%
FRA:AP3 (7/7/2025, 7:00:00 PM)
247.1
-0.8 (-0.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap54.99B
Analysts75.17
Price Target289.43 (17.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend5.99
Dividend Growth(5Y)9.29%
DP102.68%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.19%
Min EPS beat(2)-5.81%
Max EPS beat(2)-0.56%
EPS beat(4)2
Avg EPS beat(4)-0.17%
Min EPS beat(4)-5.81%
Max EPS beat(4)4.45%
EPS beat(8)5
Avg EPS beat(8)-0.21%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)8
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)-1.23%
Revenue beat(8)0
Avg Revenue beat(8)-4.15%
Revenue beat(12)3
Avg Revenue beat(12)-1.71%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)-1.58%
PT rev (3m)-10.59%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-9.87%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-5.31%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-2.67%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 22.18 | ||
| P/S | 5.37 | ||
| P/FCF | N/A | ||
| P/OCF | 19.2 | ||
| P/B | 4.39 | ||
| P/tB | 4.76 | ||
| EV/EBITDA | 17.8 |
EPS(TTM)10.5
EY4.25%
EPS(NY)11.14
Fwd EY4.51%
FCF(TTM)-16.6
FCFYN/A
OCF(TTM)12.87
OCFY5.21%
SpS46.06
BVpS56.34
TBVpS51.86
PEG (NY)N/A
PEG (5Y)2.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.43% | ||
| ROCE | 8.57% | ||
| ROIC | 6.75% | ||
| ROICexc | 7.08% | ||
| ROICexgc | 7.34% | ||
| OM | 23.99% | ||
| PM (TTM) | 12.76% | ||
| GM | 31.95% | ||
| FCFM | N/A |
ROA(3y)8.39%
ROA(5y)8.09%
ROE(3y)18.57%
ROE(5y)17.37%
ROIC(3y)7.56%
ROIC(5y)7.62%
ROICexc(3y)8.39%
ROICexc(5y)9.21%
ROICexgc(3y)8.81%
ROICexgc(5y)9.81%
ROCE(3y)9.41%
ROCE(5y)9.47%
ROICexcg growth 3Y-11.13%
ROICexcg growth 5Y-10.1%
ROICexc growth 3Y-10.01%
ROICexc growth 5Y-9.24%
OM growth 3Y3.42%
OM growth 5Y-0.02%
PM growth 3Y15.88%
PM growth 5Y9.9%
GM growth 3Y2.26%
GM growth 5Y-0.31%
F-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 515.65% | ||
| Cap/Sales | 63.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.79 |
F-Score4
WACC8.21%
ROIC/WACC0.82
Cap/Depr(3y)342.56%
Cap/Depr(5y)285.18%
Cap/Sales(3y)38.64%
Cap/Sales(5y)33.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.32%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-5.61%
EPS Next Y-2.65%
EPS Next 2Y2.54%
EPS Next 3Y4.61%
EPS Next 5Y7.56%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
Revenue Next Year-1.28%
Revenue Next 2Y1.71%
Revenue Next 3Y3.29%
Revenue Next 5Y7.62%
EBIT growth 1Y2.88%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year68.68%
EBIT Next 3Y24.82%
EBIT Next 5Y19.65%
FCF growth 1Y-8428.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.28%
OCF growth 3Y2.95%
OCF growth 5Y4.19%