AIR PRODUCTS & CHEMICALS INC (APD)
US0091581068 - Common Stock
We assign a fundamental rating of 5 out of 10 to APD. APD was compared to 84 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.
In the past 5 years APD has always been profitable.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
APD has a better Return On Assets (9.67%) than 92.86% of its industry peers.
APD has a better Return On Equity (22.47%) than 91.67% of its industry peers.
With a decent Return On Invested Capital value of 6.68%, APD is doing good in the industry, outperforming 69.05% of the companies in the same industry.
APD had an Average Return On Invested Capital over the past 3 years of 7.56%. This is in line with the industry average of 6.50%.
| 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
Looking at the Profit Margin, with a value of 31.64%, APD belongs to the top of the industry, outperforming 98.81% of the companies in the same industry.
In the last couple of years the Profit Margin of APD has grown nicely.
Looking at the Operating Margin, with a value of 24.29%, APD belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
APD's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 32.49%, 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 | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% |
OM growth 3Y3.51%
OM growth 5Y0.03%
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.
Compared to 5 years ago, APD has more shares outstanding
Compared to 1 year ago, APD has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.80 indicates that APD is somewhat dependend on debt financing.
APD has a Debt to Equity ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC8.31%
2.3 Liquidity
APD has a Current Ratio of 1.52. 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 worse Current ratio (1.52) than 70.24% of its industry peers.
A Quick Ratio of 1.34 indicates that APD should not have too much problems paying 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
The Earnings Per Share has been growing slightly by 7.99% over the past year.
APD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
APD shows a decrease in Revenue. In the last year, the revenue decreased by -3.96%.
The Revenue has been growing slightly by 6.29% on average over the past years.
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 12.13% on average over the next years. This is quite good.
APD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.34% yearly.
EPS Next Y7.47%
EPS Next 2Y8.43%
EPS Next 3Y10.54%
EPS Next 5Y12.14%
Revenue Next Year3.86%
Revenue Next 2Y5.56%
Revenue Next 3Y9.34%
Revenue Next 5Y10.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.46 indicates a quite expensive valuation of APD.
APD's Price/Earnings is on the same level as the industry average.
APD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.65.
With a Price/Forward Earnings ratio of 24.62, APD is valued on the expensive side.
Based on the Price/Forward Earnings ratio, APD is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of APD to the average of the S&P500 Index (23.56), we can say APD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 24.62 |
4.2 Price Multiples
71.43% 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 | 19.14 |
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)3.54
PEG (5Y)3.07
EPS Next 2Y8.43%
EPS Next 3Y10.54%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
APD's Dividend Yield is a higher than the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.23, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 9.29%!
APD has been paying a dividend for at least 10 years, so it has 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
40.88% of the earnings are spent on dividend by APD. This is a bit on the high side, but may be sustainable.
The dividend of APD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.88%
EPS Next 2Y8.43%
EPS Next 3Y10.54%
AIR PRODUCTS & CHEMICALS INC
NYSE:APD (11/21/2024, 4:33:43 PM)
After market: 328.88 0 (0%)328.88
+1.03 (+0.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap73.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 24.62 | ||
| 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)3.54
PEG (5Y)3.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 22.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% | ||
| 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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.34 | ||
| 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)7.99%
EPS 3Y11.28%
EPS 5Y
EPS Q2Q%
EPS Next Y7.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.44%
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