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AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis

USA - NYSE:APD - US0091581068 - Common Stock

290.95 USD
-1.5 (-0.51%)
Last: 9/19/2025, 11:39:07 AM
Fundamental Rating

4

APD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While APD belongs to the best of the industry regarding profitability, there are concerns on its financial health. APD is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

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.
Each year in the past 5 years APD has been profitable.
Each year in the past 5 years APD had a positive operating cash flow.
APD Yearly Net Income VS EBIT VS OCF VS FCFAPD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B

1.2 Ratios

APD has a better Return On Assets (3.72%) than 72.29% of its industry peers.
APD's Return On Equity of 9.98% is fine compared to the rest of the industry. APD outperforms 78.31% of its industry peers.
The Return On Invested Capital of APD (6.24%) is better than 68.67% of its industry peers.
APD had an Average Return On Invested Capital over the past 3 years of 7.56%. This is in line with the industry average of 6.34%.
Industry RankSector Rank
ROA 3.72%
ROE 9.98%
ROIC 6.24%
ROA(3y)8.39%
ROA(5y)8.09%
ROE(3y)18.57%
ROE(5y)17.37%
ROIC(3y)7.56%
ROIC(5y)7.62%
APD Yearly ROA, ROE, ROICAPD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

APD's Profit Margin of 12.86% is amongst the best of the industry. APD outperforms 90.36% of its industry peers.
In the last couple of years the Profit Margin of APD has grown nicely.
The Operating Margin of APD (24.01%) is better than 92.77% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
The Gross Margin of APD (31.87%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of APD has remained more or less at the same level.
Industry RankSector Rank
OM 24.01%
PM (TTM) 12.86%
GM 31.87%
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%
APD Yearly Profit, Operating, Gross MarginsAPD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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2

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.
The debt/assets ratio for APD is higher compared to a year ago.
APD Yearly Shares OutstandingAPD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
APD Yearly Total Debt VS Total AssetsAPD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

APD has an Altman-Z score of 2.66. This is not the best score and indicates that APD is in the grey zone with still only limited risk for bankruptcy at the moment.
APD has a better Altman-Z score (2.66) than 74.70% of its industry peers.
APD has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.09, APD is doing worse than 68.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF N/A
Altman-Z 2.66
ROIC/WACC0.75
WACC8.35%
APD Yearly LT Debt VS Equity VS FCFAPD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

APD has a Current Ratio of 1.29. 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 Current ratio of 1.29. This is amonst the worse of the industry: APD underperforms 85.54% of its industry peers.
A Quick Ratio of 1.12 indicates that APD should not have too much problems paying its short term obligations.
The Quick ratio of APD (1.12) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.12
APD Yearly Current Assets VS Current LiabilitesAPD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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3

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 1.50% over the past year.
Measured over the past years, APD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.62% on average per year.
APD shows a decrease in Revenue. In the last year, the revenue decreased by -0.38%.
The Revenue has been growing slightly by 6.29% on average over the past years.
EPS 1Y (TTM)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%

3.2 Future

APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.37% yearly.
The Revenue is expected to grow by 5.98% on average over the next years.
EPS Next Y-2.39%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
EPS Next 5Y6.37%
Revenue Next Year-0.99%
Revenue Next 2Y1.76%
Revenue Next 3Y3.06%
Revenue Next 5Y5.98%

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
APD Yearly Revenue VS EstimatesAPD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
APD Yearly EPS VS EstimatesAPD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.85, which indicates a rather expensive current valuation of APD.
APD's Price/Earnings ratio is in line with the industry average.
APD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.28, APD is valued on the expensive side.
APD's Price/Forward Earnings ratio is in line with the industry average.
APD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.88.
Industry RankSector Rank
PE 23.85
Fwd PE 22.28
APD Price Earnings VS Forward Price EarningsAPD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

APD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. APD is more expensive than 61.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.05
APD Per share dataAPD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60

4.3 Compensation for Growth

APD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.77
EPS Next 2Y2.49%
EPS Next 3Y4.56%

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4

5. Dividend

5.1 Amount

APD has a Yearly Dividend Yield of 2.43%.
Compared to an average industry Dividend Yield of 3.43, APD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, APD has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

The dividend of APD is nicely growing with an annual growth rate of 9.29%!
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)9.29%
Div Incr Years1
Div Non Decr Years1
APD Yearly Dividends per shareAPD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

APD pays out 101.85% of its income as dividend. This is not a sustainable payout ratio.
APD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP101.85%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
APD Yearly Income VS Free CF VS DividendAPD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B
APD Dividend Payout.APD Dividend Payout, showing the Payout Ratio.APD Dividend Payout.PayoutRetained Earnings

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AIR PRODUCTS & CHEMICALS INC

NYSE:APD (9/19/2025, 11:39:07 AM)

290.95

-1.5 (-0.51%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)07-31 2025-07-31/bmo
Earnings (Next)11-05 2025-11-05/amc
Inst Owners93.13%
Inst Owner Change0.8%
Ins Owners0.03%
Ins Owner Change0.91%
Market Cap64.75B
Analysts74.48
Price Target332.45 (14.26%)
Short Float %2.32%
Short Ratio6
Dividend
Industry RankSector Rank
Dividend Yield 2.43%
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP101.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date10-01 2025-10-01 (1.79)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.82%
Min EPS beat(2)-5.81%
Max EPS beat(2)2.18%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-5.81%
Max EPS beat(4)2.18%
EPS beat(8)5
Avg EPS beat(8)-0.1%
EPS beat(12)8
Avg EPS beat(12)0.28%
EPS beat(16)9
Avg EPS beat(16)0.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.97%
Revenue beat(12)3
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)0.08%
PT rev (3m)1.28%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-2.59%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 23.85
Fwd PE 22.28
P/S 5.37
P/FCF N/A
P/OCF 21.93
P/B 4.17
P/tB 4.54
EV/EBITDA 18.05
EPS(TTM)12.2
EY4.19%
EPS(NY)13.06
Fwd EY4.49%
FCF(TTM)-20.79
FCFYN/A
OCF(TTM)13.27
OCFY4.56%
SpS54.18
BVpS69.82
TBVpS64.1
PEG (NY)N/A
PEG (5Y)2.77
Profitability
Industry RankSector Rank
ROA 3.72%
ROE 9.98%
ROCE 7.84%
ROIC 6.24%
ROICexc 6.65%
ROICexgc 6.9%
OM 24.01%
PM (TTM) 12.86%
GM 31.87%
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 Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF N/A
Debt/EBITDA 3.84
Cap/Depr 494.72%
Cap/Sales 62.86%
Interest Coverage 250
Cash Conversion 66.7%
Profit Quality N/A
Current Ratio 1.29
Quick Ratio 1.12
Altman-Z 2.66
F-Score5
WACC8.35%
ROIC/WACC0.75
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)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
EPS Next Y-2.39%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
EPS Next 5Y6.37%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%
Revenue Next Year-0.99%
Revenue Next 2Y1.76%
Revenue Next 3Y3.06%
Revenue Next 5Y5.98%
EBIT growth 1Y2.3%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year69.55%
EBIT Next 3Y25.04%
EBIT Next 5Y18.31%
FCF growth 1Y-533.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.32%
OCF growth 3Y2.95%
OCF growth 5Y4.19%