AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
FRA:AP3 - Deutsche Boerse Ag - US0091581068 - Common Stock - Currency: EUR
Taking everything into account, AP3 scores 4 out of 10 in our fundamental rating. AP3 was compared to 60 industry peers in the Chemicals industry. AP3 has an excellent profitability rating, but there are 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.
In the past 5 years AP3 has always been profitable.
AP3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AP3's Return On Assets of 9.67% is amongst the best of the industry. AP3 outperforms 94.74% of its industry peers.
With an excellent Return On Equity value of 22.47%, AP3 belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
AP3's Return On Invested Capital of 6.68% is fine compared to the rest of the industry. AP3 outperforms 75.44% 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 6.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 22.47% | ||
| ROIC | 6.68% |
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 31.64%. This is amongst the best in the industry. AP3 outperforms 98.25% of its industry peers.
AP3's Profit Margin has improved in the last couple of years.
AP3 has a Operating Margin of 24.29%. This is amongst the best in the industry. AP3 outperforms 96.49% 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 of 32.49%. This is comparable to the rest of the industry: AP3 outperforms 50.88% of its industry peers.
AP3's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% |
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
AP3 has a Debt/Equity ratio of 0.80. This is a neutral value indicating AP3 is somewhat dependend on debt financing.
AP3's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. AP3 is outperformed by 75.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.78
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.52 indicates that AP3 should not have too much problems paying its short term obligations.
AP3 has a Current ratio of 1.52. This is in the lower half of the industry: AP3 underperforms 68.42% of its industry peers.
AP3 has a Quick Ratio of 1.34. This is a normal value and indicates that AP3 is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AP3 (1.34) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.99% over the past year.
Measured over the past years, AP3 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.62% on average per year.
AP3 shows a decrease in Revenue. In the last year, the revenue decreased by -3.96%.
AP3 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
EPS 1Y (TTM)7.99%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%13.02%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.12%
3.2 Future
The Earnings Per Share is expected to grow by 6.30% on average over the next years.
Based on estimates for the next years, AP3 will show a small growth in Revenue. The Revenue will grow by 6.94% on average per year.
EPS Next Y4.06%
EPS Next 2Y6.83%
EPS Next 3Y8.51%
EPS Next 5Y6.3%
Revenue Next Year1.05%
Revenue Next 2Y4.12%
Revenue Next 3Y6.44%
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
The Price/Earnings ratio is 27.17, which means the current valuation is very expensive for AP3.
AP3's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.47. AP3 is around the same levels.
With a Price/Forward Earnings ratio of 26.11, AP3 can be considered very expensive at the moment.
AP3's Price/Forward Earnings is on the same level as the industry average.
AP3 is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 26.11 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than AP3, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.65 |
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)6.69
PEG (5Y)3.15
EPS Next 2Y6.83%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, AP3 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.94, AP3 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, AP3 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 Years2
Div Non Decr Years2
5.3 Sustainability
40.88% of the earnings are spent on dividend by AP3. 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.
DP40.88%
EPS Next 2Y6.83%
EPS Next 3Y8.51%
AIR PRODUCTS & CHEMICALS INC
FRA:AP3 (2/4/2025, 7:00:00 PM)
326.8
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.9%
Inst Owner ChangeN/A
Ins Owners0.33%
Ins Owner ChangeN/A
Market Cap72.67B
Analysts77.24
Price Target334.98 (2.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP40.88%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.85%
Min EPS beat(2)1.25%
Max EPS beat(2)4.45%
EPS beat(4)3
Avg EPS beat(4)0.84%
Min EPS beat(4)-7.08%
Max EPS beat(4)4.72%
EPS beat(8)6
Avg EPS beat(8)0.49%
EPS beat(12)8
Avg EPS beat(12)0.57%
EPS beat(16)8
Avg EPS beat(16)-0.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-2.63%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-6.94%
Max Revenue beat(4)-1.8%
Revenue beat(8)1
Avg Revenue beat(8)-3.92%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)8
Avg Revenue beat(16)0.17%
PT rev (1m)-2.05%
PT rev (3m)10.12%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)-11.26%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-8.88%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 26.11 | ||
| P/S | 6.21 | ||
| P/FCF | N/A | ||
| P/OCF | 20.6 | ||
| P/B | 4.41 | ||
| P/tB | 4.75 | ||
| EV/EBITDA | 19.65 |
EPS(TTM)12.03
EY3.68%
EPS(NY)12.52
Fwd EY3.83%
FCF(TTM)-13.71
FCFYN/A
OCF(TTM)15.87
OCFY4.86%
SpS52.65
BVpS74.13
TBVpS68.83
PEG (NY)6.69
PEG (5Y)3.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 22.47% | ||
| ROCE | 8.31% | ||
| ROIC | 6.68% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 7.58% | ||
| OM | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% | ||
| 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 468.38% | ||
| Cap/Sales | 56.17% | ||
| Interest Coverage | 14.83 | ||
| Cash Conversion | 83.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | N/A |
F-Score5
WACC8.62%
ROIC/WACC0.78
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)7.99%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%13.02%
EPS Next Y4.06%
EPS Next 2Y6.83%
EPS Next 3Y8.51%
EPS Next 5Y6.3%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.12%
Revenue Next Year1.05%
Revenue Next 2Y4.12%
Revenue Next 3Y6.44%
Revenue Next 5Y6.94%
EBIT growth 1Y7.32%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year77.46%
EBIT Next 3Y29.11%
EBIT Next 5Y18.88%
FCF growth 1Y-121.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.74%
OCF growth 3Y2.95%
OCF growth 5Y4.19%