AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
FRA:AP3 - Deutsche Boerse Ag - US0091581068 - Common Stock - Currency: EUR
AP3 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 industry peers in the Chemicals industry. AP3 scores excellent on profitability, but 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
In the past year AP3 was profitable.
AP3 had a positive operating cash flow in the past year.
Each year in the past 5 years AP3 has been profitable.
AP3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.94%, AP3 is in the better half of the industry, outperforming 68.66% 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 68.66% 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 68.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AP3 is in line with the industry average of 6.51%.
| 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 92.54% of its industry peers.
In the last couple of years the Profit Margin of AP3 has grown nicely.
The Operating Margin of AP3 (23.99%) is better than 95.52% 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 49.25% of the companies in the same industry.
AP3's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AP3 is destroying value.
Compared to 1 year ago, AP3 has about the same amount of shares outstanding.
Compared to 5 years ago, AP3 has more shares outstanding
AP3 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 indicates that AP3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
AP3's Altman-Z score of 2.80 is fine compared to the rest of the industry. AP3 outperforms 68.66% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that AP3 has dependencies on debt financing.
The Debt to Equity ratio of AP3 (1.02) is worse than 77.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.8 |
ROIC/WACC0.83
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.00 indicates that AP3 may have some problems paying its short term obligations.
With a Current ratio value of 1.00, AP3 is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that AP3 may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, AP3 is doing worse than 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.32% over the past year.
AP3 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
The Revenue has decreased by -1.09% in the past year.
AP3 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
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
The Earnings Per Share is expected to grow by 7.56% on average over the next years.
The Revenue is expected to grow by 7.62% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.70, the valuation of AP3 can be described as rather expensive.
AP3's Price/Earnings ratio is in line with the industry average.
AP3's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 22.32 indicates a rather expensive valuation of AP3.
AP3's Price/Forward Earnings ratio is in line with the industry average.
AP3's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.7 | ||
| Fwd PE | 22.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AP3 is valued a bit more expensive than the industry average as 62.69% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.89 |
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)2.75
EPS Next 2Y2.54%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
AP3 has a Yearly Dividend Yield of 2.45%.
Compared to an average industry Dividend Yield of 3.05, AP3 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AP3 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
On average, the dividend of AP3 grows each year by 9.29%, which is quite nice.
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.
AP3's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP102.68%
EPS Next 2Y2.54%
EPS Next 3Y4.61%
FRA:AP3 (7/3/2025, 7:00:00 PM)
247.9
+3.8 (+1.56%)
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 Cap55.17B
Analysts75.17
Price Target289.43 (16.75%)
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 | 23.7 | ||
| Fwd PE | 22.32 | ||
| P/S | 5.4 | ||
| P/FCF | N/A | ||
| P/OCF | 19.33 | ||
| P/B | 4.42 | ||
| P/tB | 4.8 | ||
| EV/EBITDA | 17.89 |
EPS(TTM)10.46
EY4.22%
EPS(NY)11.11
Fwd EY4.48%
FCF(TTM)-16.55
FCFYN/A
OCF(TTM)12.82
OCFY5.17%
SpS45.9
BVpS56.15
TBVpS51.69
PEG (NY)N/A
PEG (5Y)2.75
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 | 2.8 |
F-Score4
WACC8.18%
ROIC/WACC0.83
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%