AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
267.53 USD
+1.55 (+0.58%)
266.51 USD
-1.02 (-0.38%)
We assign a fundamental rating of 3 out of 10 to APD. APD was compared to 82 industry peers in the Chemicals industry. While APD is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past year APD had a positive cash flow from operations.
- 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
- With a Return On Assets value of -0.96%, APD perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
- With a Return On Equity value of -2.63%, APD perfoms like the industry average, outperforming 45.12% 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 69.51% 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 6.11%.
| 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
- With an excellent Operating Margin value of 23.74%, APD belongs to the best of the industry, outperforming 91.46% 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.
- APD has a Gross Margin of 31.41%. This is comparable to the rest of the industry: APD outperforms 58.54% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APD 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 2.54 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.54, APD is in the better half of the industry, outperforming 74.39% of the companies in the same industry.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that APD has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.13, APD is not doing good in the industry: 69.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC0.49
WACC12.7%
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's Current ratio of 1.38 is on the low side compared to the rest of the industry. APD is outperformed by 78.05% 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.
- Looking at the Quick ratio, with a value of 1.20, APD is in line with its industry, outperforming 47.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- APD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.22%.
- Measured over the past 5 years, APD shows a small growth in Earnings Per Share. The EPS has been growing by 7.07% on average per year.
- APD shows a decrease in Revenue. In the last year, the revenue decreased by -0.52%.
- The Revenue has been growing slightly by 6.33% on average over the past years.
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
- APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
- APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
EPS Next Y9.02%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
EPS Next 5Y7.88%
Revenue Next Year3.79%
Revenue Next 2Y4.86%
Revenue Next 3Y5.61%
Revenue Next 5Y6.78%
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 stable.
- 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
- APD is valuated rather expensively with a Price/Earnings ratio of 22.24.
- APD's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, APD is valued at the same level.
- With a Price/Forward Earnings ratio of 20.40, APD is valued on the expensive side.
- APD's Price/Forward Earnings is on the same level as the industry average.
- APD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 20.4 |
4.2 Price Multiples
- 71.95% 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 | 17.04 |
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)2.47
PEG (5Y)3.15
EPS Next 2Y8.07%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.69%, APD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.28, 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 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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.
- APD has decreased its dividend 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 2Y8.07%
EPS Next 3Y8.66%
267.53
+1.55 (+0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)01-30 2026-01-30/bmo
Inst Owners94.93%
Inst Owner Change-0.03%
Ins Owners1.88%
Ins Owner Change2.93%
Market Cap59.55B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts74.29
Price Target299.81 (12.07%)
Short Float %2.77%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
Yearly Dividend7.12
Dividend Growth(5Y)7.3%
DP-401.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-02 2026-01-02 (1.79)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.68%
Min EPS beat(2)-0.83%
Max EPS beat(2)2.18%
EPS beat(4)1
Avg EPS beat(4)-1.26%
Min EPS beat(4)-5.81%
Max EPS beat(4)2.18%
EPS beat(8)4
Avg EPS beat(8)-0.21%
EPS beat(12)7
Avg EPS beat(12)-0.09%
EPS beat(16)9
Avg EPS beat(16)0.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.42%
Revenue beat(12)2
Avg Revenue beat(12)-2.88%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)-4.87%
PT rev (3m)-9.82%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 20.4 | ||
| P/S | 4.95 | ||
| P/FCF | N/A | ||
| P/OCF | 18.28 | ||
| P/B | 3.96 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 17.04 |
EPS(TTM)12.03
EY4.5%
EPS(NY)13.11
Fwd EY4.9%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY5.47%
SpS54.08
BVpS67.5
TBVpS61.85
PEG (NY)2.47
PEG (5Y)3.15
Graham Number135.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.96% | ||
| ROE | -2.63% | ||
| ROCE | 7.76% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.56% | ||
| ROICexgc | 6.81% | ||
| OM | 23.74% | ||
| PM (TTM) | N/A | ||
| GM | 31.41% | ||
| FCFM | N/A |
ROA(3y)5.3%
ROA(5y)6.4%
ROE(3y)11.97%
ROE(5y)13.72%
ROIC(3y)6.89%
ROIC(5y)7.28%
ROICexc(3y)7.39%
ROICexc(5y)8.33%
ROICexgc(3y)7.7%
ROICexgc(5y)8.79%
ROCE(3y)8.6%
ROCE(5y)9.08%
ROICexgc growth 3Y-12.25%
ROICexgc growth 5Y-10.36%
ROICexc growth 3Y-11.59%
ROICexc growth 5Y-9.49%
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%
F-Score2
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 448.96% | ||
| Cap/Sales | 58.34% | ||
| Interest Coverage | 14.87 | ||
| Cash Conversion | 73.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.54 |
F-Score2
WACC12.7%
ROIC/WACC0.49
Cap/Depr(3y)419.31%
Cap/Depr(5y)332.63%
Cap/Sales(3y)50.41%
Cap/Sales(5y)39.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.22%
EPS 3Y4.94%
EPS 5Y7.07%
EPS Q2Q%-4.78%
EPS Next Y9.02%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
EPS Next 5Y7.88%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y-1.77%
Revenue growth 5Y6.33%
Sales Q2Q%-0.65%
Revenue Next Year3.79%
Revenue Next 2Y4.86%
Revenue Next 3Y5.61%
Revenue Next 5Y6.78%
EBIT growth 1Y-2.79%
EBIT growth 3Y5.8%
EBIT growth 5Y5.33%
EBIT Next Year89.03%
EBIT Next 3Y29.48%
EBIT Next 5Y19.59%
FCF growth 1Y-19.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.69%
OCF growth 3Y0.27%
OCF growth 5Y-0.05%
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 1 / 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 22.24 and the Price/Book (PB) ratio is 3.96.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.