AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
NYSE:APD - New York Stock Exchange, Inc. - US0091581068 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to APD. APD was compared to 85 industry peers in the Chemicals industry. APD scores excellent on profitability, 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.
In the past year APD had a positive cash flow from operations.
APD had positive earnings in each of the past 5 years.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.67%, APD belongs to the top of the industry, outperforming 92.77% of the companies in the same industry.
APD has a better Return On Equity (22.47%) than 92.77% of its industry peers.
APD has a better Return On Invested Capital (6.68%) 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 6.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 22.47% | ||
| ROIC | 6.68% |
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
With an excellent Profit Margin value of 31.64%, APD belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
In the last couple of years the Profit Margin of APD has grown nicely.
APD has a Operating Margin of 24.29%. 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.
The Gross Margin of APD (32.49%) is better than 61.45% 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 | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% |
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
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.
APD has a worse debt/assets ratio than last year.
2.2 Solvency
APD has a Debt/Equity ratio of 0.80. This is a neutral value indicating APD is somewhat dependend on debt financing.
APD has a Debt to Equity ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.82
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.52 indicates that APD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.52, APD is doing worse than 67.47% of the companies in the same industry.
APD has a Quick Ratio of 1.34. 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 (1.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
APD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.99%.
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 -3.96% in the last year.
Measured over the past years, APD shows a small growth in Revenue. The Revenue has been growing by 6.29% on average per year.
EPS 1Y (TTM)7.99%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%13.02%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.12%
3.2 Future
The Earnings Per Share is expected to grow by 8.59% on average over the next years. This is quite good.
Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
EPS Next Y4.34%
EPS Next 2Y7.11%
EPS Next 3Y9.06%
EPS Next 5Y8.59%
Revenue Next Year0.95%
Revenue Next 2Y4.14%
Revenue Next 3Y6.52%
Revenue Next 5Y7.42%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.07, the valuation of APD can be described as expensive.
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 28.64, APD is valued at the same level.
A Price/Forward Earnings ratio of 24.98 indicates a rather expensive valuation of APD.
APD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. APD is more expensive than 62.65% of the companies in the same industry.
APD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 24.98 |
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 73.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
APD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.01
PEG (5Y)3.02
EPS Next 2Y7.11%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.27%, APD has a reasonable but not impressive dividend return.
APD's Dividend Yield is a higher than the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.28, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
On average, the dividend of APD grows each year by 9.29%, which is quite nice.
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
APD pays out 40.88% of its income as dividend. 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.
DP40.88%
EPS Next 2Y7.11%
EPS Next 3Y9.06%
AIR PRODUCTS & CHEMICALS INC
NYSE:APD (1/23/2025, 8:43:16 PM)
After market: 325.66 +1.66 (+0.51%)324
+7.01 (+2.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.9%
Inst Owner Change-0.49%
Ins Owners0.33%
Ins Owner Change3.29%
Market Cap72.05B
Analysts77.24
Price Target354.35 (9.37%)
Short Float %1.29%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP40.88%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.85%
Min EPS beat(2)1.25%
Max EPS beat(2)4.45%
EPS beat(4)3
Avg EPS beat(4)0.84%
Min EPS beat(4)-7.08%
Max EPS beat(4)4.72%
EPS beat(8)6
Avg EPS beat(8)0.49%
EPS beat(12)8
Avg EPS beat(12)0.57%
EPS beat(16)8
Avg EPS beat(16)-0.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-2.63%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-6.94%
Max Revenue beat(4)-1.8%
Revenue beat(8)1
Avg Revenue beat(8)-3.92%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)8
Avg Revenue beat(16)0.17%
PT rev (1m)0.76%
PT rev (3m)16.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.15%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.07 | ||
| Fwd PE | 24.98 | ||
| P/S | 5.95 | ||
| P/FCF | N/A | ||
| P/OCF | 19.76 | ||
| P/B | 4.23 | ||
| P/tB | 4.55 | ||
| EV/EBITDA | 18.95 |
EPS(TTM)12.43
EY3.84%
EPS(NY)12.97
Fwd EY4%
FCF(TTM)-14.16
FCFYN/A
OCF(TTM)16.4
OCFY5.06%
SpS54.41
BVpS76.61
TBVpS71.14
PEG (NY)6.01
PEG (5Y)3.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 22.47% | ||
| ROCE | 8.31% | ||
| ROIC | 6.68% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 7.58% | ||
| OM | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% | ||
| 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 468.38% | ||
| Cap/Sales | 56.17% | ||
| Interest Coverage | 14.83 | ||
| Cash Conversion | 83.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | N/A |
F-Score5
WACC8.11%
ROIC/WACC0.82
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)7.99%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%13.02%
EPS Next Y4.34%
EPS Next 2Y7.11%
EPS Next 3Y9.06%
EPS Next 5Y8.59%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.12%
Revenue Next Year0.95%
Revenue Next 2Y4.14%
Revenue Next 3Y6.52%
Revenue Next 5Y7.42%
EBIT growth 1Y7.32%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year77.46%
EBIT Next 3Y29.11%
EBIT Next 5Y21.25%
FCF growth 1Y-121.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.74%
OCF growth 3Y2.95%
OCF growth 5Y4.19%