AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
247.42 USD
+1.58 (+0.64%)
246.722 USD
-0.7 (-0.28%)
We assign a fundamental rating of 3 out of 10 to APD. APD was compared to 83 industry peers in the Chemicals industry. While APD is still in line with the averages on profitability rating, there are concerns on its financial health. APD is valued expensive and it does not seem to be growing.
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.
Of the past 5 years APD 4 years were profitable.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
APD has a Return On Assets (-0.96%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -2.63%, APD is in line with its industry, outperforming 46.43% of the companies in the same industry.
APD has a better Return On Invested Capital (6.23%) than 70.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APD is in line with the industry average of 6.09%.
| 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
Looking at the Operating Margin, with a value of 23.74%, APD belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
APD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.41%, APD is in line with its industry, outperforming 59.52% of the companies in the same industry.
APD's Gross Margin has been stable in the last couple of years.
| 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%
2. Health
2.1 Basic Checks
APD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for APD remains at a similar level compared to 1 year ago.
APD has more shares outstanding than it did 5 years ago.
APD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.44, APD is doing good in the industry, outperforming 77.38% of the companies in the same industry.
APD has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
APD has a worse Debt to Equity ratio (1.13) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.44 |
ROIC/WACC0.5
WACC12.42%
2.3 Liquidity
A Current Ratio of 1.38 indicates that APD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, APD is not doing good in the industry: 77.38% 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 of 1.20. This is comparable to the rest of the industry: APD outperforms 46.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for APD have decreased by -3.22% in the last year.
The Earnings Per Share has been growing slightly by 7.07% on average over the past years.
APD shows a decrease in Revenue. In the last year, the revenue decreased by -0.52%.
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 7.69% 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 6.92% yearly.
EPS Next Y9.02%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
EPS Next 5Y7.69%
Revenue Next Year3.93%
Revenue Next 2Y5.02%
Revenue Next 3Y5.96%
Revenue Next 5Y6.92%
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 stable.
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
With a Price/Earnings ratio of 20.57, APD is valued on the expensive side.
APD's Price/Earnings ratio is in line with the industry average.
APD is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.87, APD is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as APD.
When comparing the Price/Forward Earnings ratio of APD to the average of the S&P500 Index (23.46), we can say APD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 18.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.03 |
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)2.28
PEG (5Y)2.91
EPS Next 2Y8.07%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, APD has a reasonable but not impressive dividend return.
APD's Dividend Yield is a higher than the industry average which is at 2.48.
APD's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 7.30%!
APD has been paying a dividend for at least 10 years, so it has 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
APD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
APD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP-401.55%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
247.42
+1.58 (+0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.99%
Inst Owner Change-1.25%
Ins Owners0.03%
Ins Owner Change2.93%
Market Cap55.07B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts76.55
Price Target300.42 (21.42%)
Short Float %2.51%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend7.12
Dividend Growth(5Y)7.3%
DP-401.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.68%
Min EPS beat(2)-0.83%
Max EPS beat(2)2.18%
EPS beat(4)1
Avg EPS beat(4)-1.26%
Min EPS beat(4)-5.81%
Max EPS beat(4)2.18%
EPS beat(8)4
Avg EPS beat(8)-0.21%
EPS beat(12)7
Avg EPS beat(12)-0.09%
EPS beat(16)9
Avg EPS beat(16)0.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.42%
Revenue beat(12)2
Avg Revenue beat(12)-2.88%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)-5.2%
PT rev (3m)-9.63%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 18.87 | ||
| P/S | 4.58 | ||
| P/FCF | N/A | ||
| P/OCF | 16.91 | ||
| P/B | 3.67 | ||
| P/tB | 4 | ||
| EV/EBITDA | 16.03 |
EPS(TTM)12.03
EY4.86%
EPS(NY)13.11
Fwd EY5.3%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY5.91%
SpS54.08
BVpS67.5
TBVpS61.85
PEG (NY)2.28
PEG (5Y)2.91
Graham Number135.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.96% | ||
| ROE | -2.63% | ||
| ROCE | 7.76% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.56% | ||
| ROICexgc | 6.81% | ||
| OM | 23.74% | ||
| PM (TTM) | N/A | ||
| GM | 31.41% | ||
| FCFM | N/A |
ROA(3y)5.3%
ROA(5y)6.4%
ROE(3y)11.97%
ROE(5y)13.72%
ROIC(3y)6.89%
ROIC(5y)7.28%
ROICexc(3y)7.39%
ROICexc(5y)8.33%
ROICexgc(3y)7.7%
ROICexgc(5y)8.79%
ROCE(3y)8.6%
ROCE(5y)9.08%
ROICexgc growth 3Y-12.25%
ROICexgc growth 5Y-10.36%
ROICexc growth 3Y-11.59%
ROICexc growth 5Y-9.49%
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%
F-Score2
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 448.96% | ||
| Cap/Sales | 58.34% | ||
| Interest Coverage | 14.87 | ||
| Cash Conversion | 73.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.44 |
F-Score2
WACC12.42%
ROIC/WACC0.5
Cap/Depr(3y)419.31%
Cap/Depr(5y)332.63%
Cap/Sales(3y)50.41%
Cap/Sales(5y)39.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.22%
EPS 3Y4.94%
EPS 5Y7.07%
EPS Q2Q%-4.78%
EPS Next Y9.02%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y-1.77%
Revenue growth 5Y6.33%
Sales Q2Q%-0.65%
Revenue Next Year3.93%
Revenue Next 2Y5.02%
Revenue Next 3Y5.96%
Revenue Next 5Y6.92%
EBIT growth 1Y-2.79%
EBIT growth 3Y5.8%
EBIT growth 5Y5.33%
EBIT Next Year89.03%
EBIT Next 3Y29.48%
EBIT Next 5Y19.35%
FCF growth 1Y-19.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.69%
OCF growth 3Y0.27%
OCF growth 5Y-0.05%
AIR PRODUCTS & CHEMICALS INC / APD FAQ
What is the ChartMill fundamental rating of AIR PRODUCTS & CHEMICALS INC (APD) stock?
ChartMill assigns a fundamental rating of 3 / 10 to APD.
Can you provide the valuation status for AIR PRODUCTS & CHEMICALS INC?
ChartMill assigns a valuation rating of 1 / 10 to AIR PRODUCTS & CHEMICALS INC (APD). This can be considered as Overvalued.
What is the profitability of APD stock?
AIR PRODUCTS & CHEMICALS INC (APD) has a profitability rating of 5 / 10.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.
Is the dividend of AIR PRODUCTS & CHEMICALS INC sustainable?
The dividend rating of AIR PRODUCTS & CHEMICALS INC (APD) is 5 / 10 and the dividend payout ratio is -401.55%.