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AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis

FRA:AP3 - Deutsche Boerse Ag - US0091581068 - Common Stock - Currency: EUR

247.1  -0.8 (-0.32%)

Fundamental Rating

4

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.


Dividend Valuation Growth Profitability Health

7

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.
AP3.DE Yearly Net Income VS EBIT VS OCF VS FCFAP3.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B

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 RankSector 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%
AP3.DE Yearly ROA, ROE, ROICAP3.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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 RankSector 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%
AP3.DE Yearly Profit, Operating, Gross MarginsAP3.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1

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.
AP3.DE Yearly Shares OutstandingAP3.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
AP3.DE Yearly Total Debt VS Total AssetsAP3.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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 RankSector Rank
Debt/Equity 1.02
Debt/FCF N/A
Altman-Z 2.79
ROIC/WACC0.82
WACC8.21%
AP3.DE Yearly LT Debt VS Equity VS FCFAP3.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

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 RankSector Rank
Current Ratio 1
Quick Ratio 0.85
AP3.DE Yearly Current Assets VS Current LiabilitesAP3.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

4

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.
AP3.DE Yearly Revenue VS EstimatesAP3.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
AP3.DE Yearly EPS VS EstimatesAP3.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

2

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 RankSector Rank
PE 23.53
Fwd PE 22.18
AP3.DE Price Earnings VS Forward Price EarningsAP3.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 RankSector Rank
P/FCF N/A
EV/EBITDA 17.8
AP3.DE Per share dataAP3.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

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%

3

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 RankSector 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
AP3.DE Yearly Dividends per shareAP3.DE Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 2 4 6

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%
AP3.DE Yearly Income VS Free CF VS DividendAP3.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B
AP3.DE Dividend Payout.AP3.DE Dividend Payout, showing the Payout Ratio.AP3.DE Dividend Payout.PayoutRetained Earnings

AIR PRODUCTS & CHEMICALS INC

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)05-01 2025-05-01/bmo
Earnings (Next)07-31 2025-07-31/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%