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 61 industry peers in the Chemicals industry. While AP3 has a great profitability rating, there are quite some concerns on its financial health. AP3 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AP3 was profitable.
AP3 had a positive operating cash flow in the past year.
AP3 had positive earnings in each of the past 5 years.
Each year in the past 5 years AP3 had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.59%, AP3 belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
AP3 has a better Return On Equity (22.98%) than 95.24% of its industry peers.
The Return On Invested Capital of AP3 (6.74%) is better than 79.37% of its industry peers.
AP3 had an Average Return On Invested Capital over the past 3 years of 7.56%. This is in line with the industry average of 6.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 22.98% | ||
| ROIC | 6.74% |
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
Looking at the Profit Margin, with a value of 31.88%, AP3 belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
In the last couple of years the Profit Margin of AP3 has grown nicely.
The Operating Margin of AP3 (24.48%) is better than 95.24% of its industry peers.
In the last couple of years the Operating Margin of AP3 has remained more or less at the same level.
The Gross Margin of AP3 (32.55%) is comparable to the rest of the industry.
AP3's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.48% | ||
| PM (TTM) | 31.88% | ||
| GM | 32.55% |
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.
Compared to 1 year ago, AP3 has about the same amount of shares outstanding.
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
AP3 has an Altman-Z score of 3.03. This indicates that AP3 is financially healthy and has little risk of bankruptcy at the moment.
AP3 has a Altman-Z score of 3.03. This is in the better half of the industry: AP3 outperforms 73.02% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that AP3 is somewhat dependend on debt financing.
The Debt to Equity ratio of AP3 (0.80) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.03 |
ROIC/WACC0.82
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.11 indicates that AP3 should not have too much problems paying its short term obligations.
AP3's Current ratio of 1.11 is on the low side compared to the rest of the industry. AP3 is outperformed by 79.37% of its industry peers.
AP3 has a Quick Ratio of 1.11. This is a bad value and indicates that AP3 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, AP3 is doing worse than 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
AP3 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.67%.
AP3 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
AP3 shows a decrease in Revenue. In the last year, the revenue decreased by -3.12%.
AP3 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
EPS 1Y (TTM)6.67%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%1.42%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-2.2%
3.2 Future
AP3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.30% yearly.
AP3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.94% yearly.
EPS Next Y2.94%
EPS Next 2Y6.62%
EPS Next 3Y8.62%
EPS Next 5Y6.3%
Revenue Next Year-0.25%
Revenue Next 2Y3.3%
Revenue Next 3Y5.5%
Revenue Next 5Y6.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
AP3 is valuated rather expensively with a Price/Earnings ratio of 24.98.
Based on the Price/Earnings ratio, AP3 is valued a bit cheaper than the industry average as 65.08% of the companies are valued more expensively.
AP3 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.05, the valuation of AP3 can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AP3.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, AP3 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 22.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AP3.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AP3 does not grow enough to justify the current Price/Earnings ratio.
AP3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.48
PEG (5Y)2.9
EPS Next 2Y6.62%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
AP3 has a Yearly Dividend Yield of 2.30%.
AP3's Dividend Yield is a higher than the industry average which is at 2.89.
Compared to an average S&P500 Dividend Yield of 2.33, AP3 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 Years2
Div Non Decr Years2
5.3 Sustainability
AP3 pays out 40.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
AP3's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.91%
EPS Next 2Y6.62%
EPS Next 3Y8.62%
FRA:AP3 (3/7/2025, 7:00:00 PM)
287
-0.5 (-0.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap63.85B
Analysts75.86
Price Target346.01 (20.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend6.49
Dividend Growth(5Y)9.29%
DP40.91%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.34%
Min EPS beat(2)-0.56%
Max EPS beat(2)1.25%
EPS beat(4)3
Avg EPS beat(4)2.46%
Min EPS beat(4)-0.56%
Max EPS beat(4)4.72%
EPS beat(8)6
Avg EPS beat(8)0.84%
EPS beat(12)8
Avg EPS beat(12)0.56%
EPS beat(16)8
Avg EPS beat(16)-0.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-1.23%
Revenue beat(8)1
Avg Revenue beat(8)-3.53%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)7
Avg Revenue beat(16)0.08%
PT rev (1m)3.29%
PT rev (3m)4.27%
EPS NQ rev (1m)-7.21%
EPS NQ rev (3m)-7.28%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)-2.51%
Revenue NQ rev (3m)-2.41%
Revenue NY rev (1m)-1.4%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 22.05 | ||
| P/S | 5.76 | ||
| P/FCF | N/A | ||
| P/OCF | 18.09 | ||
| P/B | 4.15 | ||
| P/tB | 4.46 | ||
| EV/EBITDA | 18.49 |
EPS(TTM)11.49
EY4%
EPS(NY)13.02
Fwd EY4.54%
FCF(TTM)-15.06
FCFYN/A
OCF(TTM)15.86
OCFY5.53%
SpS49.82
BVpS69.11
TBVpS64.33
PEG (NY)8.48
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 22.98% | ||
| ROCE | 8.37% | ||
| ROIC | 6.74% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 7.39% | ||
| OM | 24.48% | ||
| PM (TTM) | 31.88% | ||
| GM | 32.55% | ||
| 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-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 508.53% | ||
| Cap/Sales | 62.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.03 |
F-Score5
WACC8.19%
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)6.67%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%1.42%
EPS Next Y2.94%
EPS Next 2Y6.62%
EPS Next 3Y8.62%
EPS Next 5Y6.3%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-2.2%
Revenue Next Year-0.25%
Revenue Next 2Y3.3%
Revenue Next 3Y5.5%
Revenue Next 5Y6.94%
EBIT growth 1Y6.98%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year77.69%
EBIT Next 3Y27.98%
EBIT Next 5Y18.88%
FCF growth 1Y-5496.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.09%
OCF growth 3Y2.95%
OCF growth 5Y4.19%