APD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. There are concerns on the financial health of APD while its profitability can be described as average. APD does not seem to be growing, but still is valued expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

APD had positive earnings in the past year.
APD had a positive operating cash flow in the past year.
APD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years APD had a positive operating cash flow.

1.2 Ratios

With a Return On Assets value of -0.96%, APD perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
APD has a Return On Equity of -2.63%. This is comparable to the rest of the industry: APD outperforms 45.12% of its industry peers.
The Return On Invested Capital of APD (6.23%) is better than 69.51% of its industry peers.
APD had an Average Return On Invested Capital over the past 3 years of 6.89%. This is in line with the industry average of 6.11%.

		Industry Rank	Sector Rank
ROA	-0.96%
ROE	-2.63%
ROIC	6.23%

ROA(3y)5.3%

ROA(5y)6.4%

ROE(3y)11.97%

ROE(5y)13.72%

ROIC(3y)6.89%

ROIC(5y)7.28%

1.3 Margins

The Operating Margin of APD (23.74%) is better than 91.46% of its industry peers.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 31.41%, APD is in line with its industry, outperforming 58.54% of the companies in the same industry.
In the last couple of years the Gross Margin of APD has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	23.74%
PM (TTM)	N/A
GM	31.41%

OM growth 3Y7.7%

OM growth 5Y-0.94%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y5.89%

GM growth 5Y-1.48%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APD is destroying value.
The number of shares outstanding for APD remains at a similar level compared to 1 year ago.
The number of shares outstanding for APD has been increased compared to 5 years ago.
Compared to 1 year ago, APD has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.52 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
APD has a Altman-Z score of 2.52. This is in the better half of the industry: APD outperforms 69.51% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that APD has dependencies on debt financing.
The Debt to Equity ratio of APD (1.13) is worse than 69.51% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.13
Debt/FCF	N/A
Altman-Z	2.52

ROIC/WACC0.49

WACC12.68%

2.3 Liquidity

APD has a Current Ratio of 1.38. This is a normal value and indicates that APD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.38, APD is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
APD has a Quick Ratio of 1.20. This is a normal value and indicates that APD is financially healthy and should not expect problems in meeting its short term obligations.
APD has a Quick ratio (1.20) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.38
Quick Ratio	1.2

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

APD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.22%.
Measured over the past 5 years, APD shows a small growth in Earnings Per Share. The EPS has been growing by 7.07% on average per year.
The Revenue has decreased by -0.52% in the past year.
Measured over the past years, APD shows a small growth in Revenue. The Revenue has been growing by 6.33% on average per year.

EPS 1Y (TTM)-3.22%

EPS 3Y4.94%

EPS 5Y7.07%

EPS Q2Q%-4.78%

Revenue 1Y (TTM)-0.52%

Revenue growth 3Y-1.77%

Revenue growth 5Y6.33%

Sales Q2Q%-0.65%

3.2 Future

The Earnings Per Share is expected to grow by 7.88% on average over the next years.
APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.

EPS Next Y9.02%

EPS Next 2Y8.07%

EPS Next 3Y8.66%

EPS Next 5Y7.88%

Revenue Next Year3.79%

Revenue Next 2Y4.86%

Revenue Next 3Y5.61%

Revenue Next 5Y6.78%

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 stable.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.95, the valuation of APD can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as APD.
The average S&P500 Price/Earnings ratio is at 27.32. APD is around the same levels.
A Price/Forward Earnings ratio of 20.13 indicates a rather expensive valuation of APD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APD is on the same level as its industry peers.
APD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.

		Industry Rank	Sector Rank
PE	21.95
Fwd PE	20.13

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than 70.73% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	16.87

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

PEG (NY)2.43

PEG (5Y)3.11

EPS Next 2Y8.07%

EPS Next 3Y8.66%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.69%, APD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.29, APD pays a bit more dividend than its industry peers.
APD's Dividend Yield is a higher than the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	2.69%

5.2 History

On average, the dividend of APD grows each year by 7.30%, which is quite nice.
APD has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of APD decreased recently.

Dividend Growth(5Y)7.3%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

The earnings of APD are negative and hence is the payout ratio. APD will probably not be able to sustain this dividend level.
The dividend of APD is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.

DP-401.55%

EPS Next 2Y8.07%

EPS Next 3Y8.66%

More info and screens

Find the best dividend stocks

Show peers with best dividend

AIR PRODUCTS & CHEMICALS INC / APD FAQ

What is the fundamental rating for APD stock?

ChartMill assigns a fundamental rating of 3 / 10 to APD.

What is the valuation status for APD stock?

ChartMill assigns a valuation rating of 1 / 10 to AIR PRODUCTS & CHEMICALS INC (APD). This can be considered as Overvalued.

Can you provide the profitability details for AIR PRODUCTS & CHEMICALS INC?

AIR PRODUCTS & CHEMICALS INC (APD) has a profitability rating of 5 / 10.

What is the valuation of AIR PRODUCTS & CHEMICALS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AIR PRODUCTS & CHEMICALS INC (APD) is 21.95 and the Price/Book (PB) ratio is 3.91.

Can you provide the financial health for APD stock?

The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.