AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
NYSE:APD - New York Stock Exchange, Inc. - US0091581068 - Common Stock - Currency: USD
APD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. APD scores excellent on profitability, but 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.
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 (9.59%) than 92.77% of its industry peers.
APD has a Return On Equity of 22.98%. This is amongst the best in the industry. APD outperforms 92.77% of its industry peers.
The Return On Invested Capital of APD (6.74%) is better than 68.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APD is in line with the industry average of 6.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 22.98% | ||
| ROIC | 6.74% |
ROA(3y)8.39%
ROA(5y)8.09%
ROE(3y)18.57%
ROE(5y)17.37%
ROIC(3y)7.56%
ROIC(5y)7.62%
1.3 Margins
APD has a Profit Margin of 31.88%. This is amongst the best in the industry. APD outperforms 98.80% of its industry peers.
In the last couple of years the Profit Margin of APD has grown nicely.
APD has a Operating Margin of 24.48%. This is amongst the best in the industry. APD outperforms 91.57% of its industry peers.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
APD has a Gross Margin of 32.55%. This is comparable to the rest of the industry: APD outperforms 59.04% of its industry peers.
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 | 24.48% | ||
| PM (TTM) | 31.88% | ||
| GM | 32.55% |
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%
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.
APD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for APD is higher compared to a year ago.
2.2 Solvency
APD has an Altman-Z score of 3.03. This indicates that APD is financially healthy and has little risk of bankruptcy at the moment.
APD has a better Altman-Z score (3.03) than 79.52% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that APD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, APD is in line with its industry, outperforming 42.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.03 |
ROIC/WACC0.8
WACC8.38%
2.3 Liquidity
APD has a Current Ratio of 1.11. 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 1.11. This is amonst the worse of the industry: APD underperforms 89.16% of its industry peers.
APD has a Quick Ratio of 1.11. This is a bad value and indicates that APD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of APD (0.96) is worse than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
APD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.67%.
APD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
Looking at the last year, APD shows a decrease in Revenue. The Revenue has decreased by -3.12% in the last year.
APD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
EPS 1Y (TTM)6.67%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%1.42%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-2.2%
3.2 Future
APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.30% yearly.
APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.94% yearly.
EPS Next Y2.94%
EPS Next 2Y6.62%
EPS Next 3Y8.62%
EPS Next 5Y6.3%
Revenue Next Year-0.07%
Revenue Next 2Y3.4%
Revenue Next 3Y5.7%
Revenue Next 5Y6.94%
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.
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
The Price/Earnings ratio is 24.85, which indicates a rather expensive current valuation of APD.
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 29.63, APD is valued at the same level.
A Price/Forward Earnings ratio of 21.93 indicates a rather expensive valuation of APD.
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 (22.68), we can say APD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
72.29% of the companies in the same industry are cheaper than APD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.41 |
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.
The decent profitability rating of APD may justify a higher PE ratio.
PEG (NY)8.44
PEG (5Y)2.88
EPS Next 2Y6.62%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.28%, APD has a reasonable but not impressive dividend return.
APD's Dividend Yield is a higher than the industry average which is at 3.28.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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.
As APD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.29%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
40.91% of the earnings are spent on dividend by APD. This is a bit on the high side, but may be sustainable.
APD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.91%
EPS Next 2Y6.62%
EPS Next 3Y8.62%
309.89
-4.39 (-1.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change-87.29%
Ins Owners0.04%
Ins Owner Change0.3%
Market Cap68.94B
Analysts76.55
Price Target361.42 (16.63%)
Short Float %1.97%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP40.91%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.34%
Min EPS beat(2)-0.56%
Max EPS beat(2)1.25%
EPS beat(4)3
Avg EPS beat(4)2.46%
Min EPS beat(4)-0.56%
Max EPS beat(4)4.72%
EPS beat(8)6
Avg EPS beat(8)0.84%
EPS beat(12)8
Avg EPS beat(12)0.56%
EPS beat(16)8
Avg EPS beat(16)-0.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-1.23%
Revenue beat(8)1
Avg Revenue beat(8)-3.53%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)7
Avg Revenue beat(16)0.08%
PT rev (1m)1.99%
PT rev (3m)4.53%
EPS NQ rev (1m)-7.28%
EPS NQ rev (3m)-12.51%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-4.21%
Revenue NQ rev (1m)-2.28%
Revenue NQ rev (3m)-8.41%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 21.93 | ||
| P/S | 5.73 | ||
| P/FCF | N/A | ||
| P/OCF | 17.99 | ||
| P/B | 4.13 | ||
| P/tB | 4.44 | ||
| EV/EBITDA | 18.41 |
EPS(TTM)12.47
EY4.02%
EPS(NY)14.13
Fwd EY4.56%
FCF(TTM)-16.35
FCFYN/A
OCF(TTM)17.22
OCFY5.56%
SpS54.09
BVpS75.03
TBVpS69.84
PEG (NY)8.44
PEG (5Y)2.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 22.98% | ||
| ROCE | 8.37% | ||
| ROIC | 6.74% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 7.39% | ||
| OM | 24.48% | ||
| PM (TTM) | 31.88% | ||
| GM | 32.55% | ||
| 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.02 | ||
| Cap/Depr | 508.53% | ||
| Cap/Sales | 62.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 3.03 |
F-Score5
WACC8.38%
ROIC/WACC0.8
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)6.67%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%1.42%
EPS Next Y2.94%
EPS Next 2Y6.62%
EPS Next 3Y8.62%
EPS Next 5Y6.3%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-2.2%
Revenue Next Year-0.07%
Revenue Next 2Y3.4%
Revenue Next 3Y5.7%
Revenue Next 5Y6.94%
EBIT growth 1Y6.98%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year77.69%
EBIT Next 3Y27.98%
EBIT Next 5Y18.88%
FCF growth 1Y-5496.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.09%
OCF growth 3Y2.95%
OCF growth 5Y4.19%