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 67 industry peers in the Chemicals industry. While AP3 has a great profitability rating, there are quite some 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.
AP3 had positive earnings in each of the past 5 years.
In the past 5 years AP3 always reported a positive cash flow from operatings.
1.2 Ratios
AP3 has a better Return On Assets (3.94%) than 70.15% of its industry peers.
The Return On Equity of AP3 (10.43%) is better than 70.15% of its industry peers.
AP3's Return On Invested Capital of 6.75% is fine compared to the rest of the industry. AP3 outperforms 70.15% 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 6.36%.
| 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 Profit Margin of 12.76%. This is amongst the best in the industry. AP3 outperforms 94.03% of its industry peers.
In the last couple of years the Profit Margin of AP3 has grown nicely.
AP3 has a better Operating Margin (23.99%) than 97.01% of its industry peers.
In the last couple of years the Operating Margin of AP3 has remained more or less at the same level.
AP3 has a Gross Margin (31.95%) which is in line with its industry peers.
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
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.
AP3 has a worse debt/assets ratio than last year.
2.2 Solvency
AP3 has an Altman-Z score of 2.81. This is not the best score and indicates that AP3 is in the grey zone with still only limited risk for bankruptcy at the moment.
AP3's Altman-Z score of 2.81 is fine compared to the rest of the industry. AP3 outperforms 73.13% of its industry peers.
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 77.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.81 |
ROIC/WACC0.8
WACC8.41%
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.
The Current ratio of AP3 (1.00) is worse than 83.58% of its industry peers.
A Quick Ratio of 0.85 indicates that AP3 may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, AP3 is not doing good in the industry: 71.64% of the companies in the same industry are doing better.
| 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.
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
The Earnings Per Share is expected to grow by 7.56% on average over the next years.
AP3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
EPS Next Y-2.51%
EPS Next 2Y2.78%
EPS Next 3Y4.7%
EPS Next 5Y7.56%
Revenue Next Year-1.37%
Revenue Next 2Y1.71%
Revenue Next 3Y3.3%
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
AP3 is valuated rather expensively with a Price/Earnings ratio of 23.85.
AP3's Price/Earnings is on the same level as the industry average.
AP3's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
A Price/Forward Earnings ratio of 22.37 indicates a rather expensive valuation of AP3.
AP3's Price/Forward Earnings ratio is in line with the industry average.
AP3 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 22.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AP3 is valued a bit more expensive than 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18 |
4.3 Compensation for Growth
The decent profitability rating of AP3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.77
EPS Next 2Y2.78%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.44%, AP3 has a reasonable but not impressive dividend return.
AP3's Dividend Yield is a higher than the industry average which is at 3.14.
Compared to an average S&P500 Dividend Yield of 2.35, AP3 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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 2Y2.78%
EPS Next 3Y4.7%
FRA:AP3 (7/18/2025, 7:00:00 PM)
252.1
+0.2 (+0.08%)
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 Cap56.10B
Analysts75.17
Price Target287.14 (13.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend6.05
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)0.2%
PT rev (3m)-11.29%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.85 | ||
| Fwd PE | 22.37 | ||
| P/S | 5.44 | ||
| P/FCF | N/A | ||
| P/OCF | 19.46 | ||
| P/B | 4.45 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 18 |
EPS(TTM)10.57
EY4.19%
EPS(NY)11.27
Fwd EY4.47%
FCF(TTM)-16.71
FCFYN/A
OCF(TTM)12.95
OCFY5.14%
SpS46.37
BVpS56.71
TBVpS52.21
PEG (NY)N/A
PEG (5Y)2.77
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 | 2.81 |
F-Score4
WACC8.41%
ROIC/WACC0.8
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-2.51%
EPS Next 2Y2.78%
EPS Next 3Y4.7%
EPS Next 5Y7.56%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
Revenue Next Year-1.37%
Revenue Next 2Y1.71%
Revenue Next 3Y3.3%
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%