AIR PRODUCTS & CHEMICALS INC (APD)
US0091581068 - Common Stock
Overall APD gets a fundamental rating of 5 out of 10. We evaluated APD against 84 industry peers in the Chemicals industry. APD has an excellent profitability rating, but there are concerns on its financial health. APD 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 APD was profitable.
APD had a positive operating cash flow in the past year.
In the past 5 years APD has always been profitable.
APD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APD has a better Return On Assets (6.88%) than 82.14% of its industry peers.
The Return On Equity of APD (16.56%) is better than 80.95% of its industry peers.
With a decent Return On Invested Capital value of 7.12%, APD is doing good in the industry, outperforming 69.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for APD is in line with the industry average of 6.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 16.56% | ||
| ROIC | 7.12% |
ROA(3y)7.77%
ROA(5y)8.02%
ROE(3y)16.25%
ROE(5y)16.06%
ROIC(3y)7.93%
ROIC(5y)8.39%
1.3 Margins
APD has a better Profit Margin (20.32%) than 96.43% of its industry peers.
In the last couple of years the Profit Margin of APD has grown nicely.
Looking at the Operating Margin, with a value of 23.06%, APD belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
With a decent Gross Margin value of 31.40%, APD is doing good in the industry, outperforming 65.48% 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 | 23.06% | ||
| PM (TTM) | 20.32% | ||
| GM | 31.4% |
OM growth 3Y-4.4%
OM growth 5Y-0.26%
PM growth 3Y-5.03%
PM growth 5Y1.7%
GM growth 3Y-4.06%
GM growth 5Y-0.53%
2. Health
2.1 Basic Checks
APD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
APD has about the same amout of shares outstanding than it did 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 2.99 indicates that APD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.99, APD is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
APD has a Debt/Equity ratio of 0.85. This is a neutral value indicating APD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.85, APD perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.99 |
ROIC/WACC0.9
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.49 indicates that APD should not have too much problems paying its short term obligations.
APD has a Current ratio of 1.49. This is in the lower half of the industry: APD underperforms 76.19% of its industry peers.
APD has a Quick Ratio of 1.31. This is a normal value and indicates that APD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.31, APD is in line with its industry, outperforming 45.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
APD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.36%, which is quite good.
APD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.27% yearly.
Looking at the last year, APD shows a decrease in Revenue. The Revenue has decreased by -7.47% in the last year.
Measured over the past years, APD shows a small growth in Revenue. The Revenue has been growing by 7.13% on average per year.
EPS 1Y (TTM)8.36%
EPS 3Y10.42%
EPS 5Y9.27%
EPS Q2Q%4.01%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y12.47%
Revenue growth 5Y7.13%
Sales Q2Q%-8.43%
3.2 Future
APD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.01% yearly.
APD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.01% yearly.
EPS Next Y7.62%
EPS Next 2Y8.53%
EPS Next 3Y8.6%
EPS Next 5Y12.01%
Revenue Next Year-3.63%
Revenue Next 2Y1.68%
Revenue Next 3Y3.84%
Revenue Next 5Y9.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.96 indicates a rather expensive valuation of APD.
60.71% of the companies in the same industry are more expensive than APD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.16. APD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 18.24 indicates a rather expensive valuation of APD.
60.71% of the companies in the same industry are cheaper than APD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.02, APD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of APD may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)2.26
EPS Next 2Y8.53%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.69%.
APD's Dividend Yield is a higher than the industry average which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.38, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 10.46%!
APD has been paying a dividend for at least 10 years, so it has a reliable track record.
APD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.46%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
APD pays out 62.97% of its income as dividend. This is not a sustainable payout ratio.
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.
DP62.97%
EPS Next 2Y8.53%
EPS Next 3Y8.6%
AIR PRODUCTS & CHEMICALS INC
NYSE:APD (7/1/2024, 7:19:20 PM)
After market: 247.34 0 (0%)247.34
-10.71 (-4.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap54.99B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 18.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.75
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 16.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.06% | ||
| PM (TTM) | 20.32% | ||
| GM | 31.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.36%
EPS 3Y10.42%
EPS 5Y
EPS Q2Q%
EPS Next Y7.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y12.47%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y