AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
262.67 USD
+1.32 (+0.51%)
APD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. APD has a medium profitability rating, but doesn't score so well on its financial health evaluation. APD has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year APD was profitable.
- 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
- The Return On Assets of APD (-0.96%) is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of -2.63%, APD is in line with its industry, outperforming 44.58% of the companies in the same industry.
- With a decent Return On Invested Capital value of 6.23%, APD is doing good in the industry, outperforming 69.88% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for APD 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
- APD has a Operating Margin of 23.74%. This is amongst the best in the industry. APD outperforms 91.57% of its industry peers.
- APD's Operating Margin has been stable in the last couple of years.
- APD's Gross Margin of 31.41% is in line compared to the rest of the industry. APD outperforms 59.04% of its industry peers.
- 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.
- Compared to 1 year ago, APD has about the same amount of shares outstanding.
- 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.
2.2 Solvency
- An Altman-Z score of 2.51 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 2.51, APD is doing good in the industry, outperforming 67.47% 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's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. APD is outperformed by 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.51 |
ROIC/WACC0.49
WACC12.64%
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.
- APD has a Current ratio of 1.38. This is in the lower half of the industry: APD underperforms 78.31% of its industry peers.
- 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's Quick ratio of 1.20 is in line compared to the rest of the industry. APD outperforms 46.99% 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.
- APD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.07% yearly.
- 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 7.88% on average over the next years.
- Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 6.78% on average per year.
EPS Next Y8.71%
EPS Next 2Y7.93%
EPS Next 3Y8.42%
EPS Next 5Y7.88%
Revenue Next Year3.82%
Revenue Next 2Y4.81%
Revenue Next 3Y5.53%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 21.83, APD is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of APD is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, APD is valued at the same level.
- A Price/Forward Earnings ratio of 20.09 indicates a rather expensive valuation of APD.
- The rest of the industry has a similar Price/Forward Earnings ratio as APD.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, APD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.83 | ||
| Fwd PE | 20.09 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APD indicates a slightly more expensive valuation: APD is more expensive than 69.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.73 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates APD does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.51
PEG (5Y)3.09
EPS Next 2Y7.93%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
- APD has a Yearly Dividend Yield of 2.71%.
- Compared to an average industry Dividend Yield of 2.23, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
- The dividend of APD is nicely growing with an annual growth rate of 7.30%!
- 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.
- 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 2Y7.93%
EPS Next 3Y8.42%
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 2 / 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 21.83 and the Price/Book (PB) ratio is 3.89.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.