AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
250.47 USD
+3.45 (+1.4%)
252.649 USD
+2.18 (+0.87%)
Overall APD gets a fundamental rating of 3 out of 10. We evaluated APD against 83 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.
APD had a positive operating cash flow in the past year.
APD had positive earnings in 4 of the past 5 years.
APD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
APD has a Return On Assets of -0.96%. This is comparable to the rest of the industry: APD outperforms 44.58% of its industry peers.
APD has a Return On Equity (-2.63%) which is comparable to the rest of the industry.
The Return On Invested Capital of APD (6.23%) is better than 69.88% 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 6.10%.
| 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
The Operating Margin of APD (23.74%) is better than 91.57% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
APD's Gross Margin of 31.41% is in line compared 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 | 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.
APD has about the same amout of shares outstanding than it did 1 year ago.
APD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, APD has a worse debt to assets ratio.
2.2 Solvency
APD has an Altman-Z score of 2.45. 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 (2.45) is better than 77.11% of its industry peers.
APD has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.13, APD is doing worse than 68.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC0.5
WACC12.49%
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 77.11% 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's Quick ratio of 1.20 is in line compared to the rest of the industry. APD outperforms 46.99% 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.
APD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.07% yearly.
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
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.
APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.92% yearly.
EPS Next Y9.02%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
EPS Next 5Y7.69%
Revenue Next Year3.93%
Revenue Next 2Y5.02%
Revenue Next 3Y5.96%
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
Based on the Price/Earnings ratio of 20.82, the valuation of APD can be described as rather expensive.
APD's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. APD is valued slightly cheaper when compared to this.
APD is valuated rather expensively with a Price/Forward Earnings ratio of 19.10.
APD's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, APD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 19.1 |
4.2 Price Multiples
66.27% 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 | 16.18 |
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)2.31
PEG (5Y)2.95
EPS Next 2Y8.07%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.90%. 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 2.47.
APD's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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%
250.47
+3.45 (+1.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.93%
Inst Owner Change0%
Ins Owners1.88%
Ins Owner Change2.93%
Market Cap55.75B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts76.55
Price Target300.42 (19.94%)
Short Float %2.62%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)-5.2%
PT rev (3m)-9.63%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 19.1 | ||
| P/S | 4.63 | ||
| P/FCF | N/A | ||
| P/OCF | 17.12 | ||
| P/B | 3.71 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 16.18 |
EPS(TTM)12.03
EY4.8%
EPS(NY)13.11
Fwd EY5.24%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY5.84%
SpS54.08
BVpS67.5
TBVpS61.85
PEG (NY)2.31
PEG (5Y)2.95
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 | 2.45 |
F-Score2
WACC12.49%
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 Y9.02%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y-1.77%
Revenue growth 5Y6.33%
Sales Q2Q%-0.65%
Revenue Next Year3.93%
Revenue Next 2Y5.02%
Revenue Next 3Y5.96%
Revenue Next 5Y6.92%
EBIT growth 1Y-2.79%
EBIT growth 3Y5.8%
EBIT growth 5Y5.33%
EBIT Next Year89.03%
EBIT Next 3Y29.48%
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 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 20.82 and the Price/Book (PB) ratio is 3.71.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.