AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
247.42 USD
+1.58 (+0.64%)
246.722 USD
-0.7 (-0.28%)
Taking everything into account, APD scores 3 out of 10 in our fundamental rating. APD was compared to 84 industry peers in the Chemicals industry. There are concerns on the financial health of APD while its profitability can be described as average. APD does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
APD had positive earnings in the past year.
In the past year APD had a positive cash flow from operations.
Of the past 5 years APD 4 years were profitable.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of APD (-0.96%) is comparable to the rest of the industry.
APD has a Return On Equity (-2.63%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.23%, APD is in the better half of the industry, outperforming 70.24% of the companies in the same industry.
APD had an Average Return On Invested Capital over the past 3 years of 6.89%. This is in line with the industry average of 6.09%.
| 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 91.67% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.41%, APD is in line with its industry, outperforming 59.52% 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 | 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.
APD has a worse debt/assets ratio than last year.
2.2 Solvency
APD has an Altman-Z score of 2.43. This is not the best score and indicates that APD is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of APD (2.43) is better than 75.00% of its industry peers.
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: 69.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.43 |
ROIC/WACC0.5
WACC12.42%
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.
The Current ratio of APD (1.38) is worse than 77.38% 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 has a Quick ratio of 1.20. This is comparable to the rest of the industry: APD outperforms 46.43% 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.
The Earnings Per Share has been growing slightly by 7.07% on average over the past years.
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
Based on estimates for the next years, APD will show a small growth in Earnings Per Share. The EPS will grow by 7.69% on average per year.
Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 6.92% on average per year.
EPS Next Y9.07%
EPS Next 2Y8.39%
EPS Next 3Y9.47%
EPS Next 5Y7.69%
Revenue Next Year3.98%
Revenue Next 2Y4.76%
Revenue Next 3Y6.19%
Revenue Next 5Y6.92%
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
The Price/Earnings ratio is 20.57, 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 26.57, APD is valued a bit cheaper.
APD is valuated rather expensively with a Price/Forward Earnings ratio of 18.86.
APD's Price/Forward Earnings ratio is in line with the industry average.
APD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
APD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. APD is more expensive than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.27
PEG (5Y)2.91
EPS Next 2Y8.39%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, APD has a reasonable but not impressive dividend return.
APD's Dividend Yield is a higher than the industry average which is at 2.45.
APD's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
5.2 History
On average, the dividend of APD grows each year by 7.30%, which is quite nice.
APD has been paying a dividend for at least 10 years, so it has 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
APD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 2Y8.39%
EPS Next 3Y9.47%
247.42
+1.58 (+0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.99%
Inst Owner Change-1.25%
Ins Owners0.03%
Ins Owner Change3.93%
Market Cap55.07B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts76.55
Price Target300.42 (21.42%)
Short Float %2.51%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend7.12
Dividend Growth(5Y)7.3%
DP-401.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-4.56%
PT rev (3m)-5.2%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.46%
EPS NY rev (1m)0.88%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 18.86 | ||
| P/S | 4.58 | ||
| P/FCF | N/A | ||
| P/OCF | 16.91 | ||
| P/B | 3.67 | ||
| P/tB | 4 | ||
| EV/EBITDA | 15.95 |
EPS(TTM)12.03
EY4.86%
EPS(NY)13.12
Fwd EY5.3%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY5.91%
SpS54.08
BVpS67.5
TBVpS61.85
PEG (NY)2.27
PEG (5Y)2.91
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 | 2.43 |
F-Score2
WACC12.42%
ROIC/WACC0.5
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 Y9.07%
EPS Next 2Y8.39%
EPS Next 3Y9.47%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y-1.77%
Revenue growth 5Y6.33%
Sales Q2Q%-0.65%
Revenue Next Year3.98%
Revenue Next 2Y4.76%
Revenue Next 3Y6.19%
Revenue Next 5Y6.92%
EBIT growth 1Y-2.79%
EBIT growth 3Y5.8%
EBIT growth 5Y5.33%
EBIT Next Year89.09%
EBIT Next 3Y30.21%
EBIT Next 5Y19.35%
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 ChartMill fundamental rating of AIR PRODUCTS & CHEMICALS INC (APD) stock?
ChartMill assigns a fundamental rating of 3 / 10 to APD.
Can you provide the valuation status for AIR PRODUCTS & CHEMICALS INC?
ChartMill assigns a valuation rating of 2 / 10 to AIR PRODUCTS & CHEMICALS INC (APD). This can be considered as Overvalued.
What is the profitability of APD stock?
AIR PRODUCTS & CHEMICALS INC (APD) has a profitability rating of 5 / 10.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.
Is the dividend of AIR PRODUCTS & CHEMICALS INC sustainable?
The dividend rating of AIR PRODUCTS & CHEMICALS INC (APD) is 5 / 10 and the dividend payout ratio is -401.55%.