AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
243 USD
-0.73 (-0.3%)
243 USD
0 (0%)
Overall APD gets a fundamental rating of 3 out of 10. We evaluated APD against 82 industry peers in the Chemicals industry. APD has a medium profitability rating, but doesn't score so well on its financial health evaluation. APD is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year APD was profitable.
APD had a positive operating cash flow in the past year.
APD had positive earnings in 4 of the past 5 years.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.96%, APD is in line with its industry, outperforming 45.12% of the companies in the same industry.
APD has a Return On Equity (-2.63%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.23%, APD is in the better half of 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 6.05%.
| 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 better Operating Margin (23.74%) than 91.46% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
The Gross Margin of APD (31.41%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APD is destroying value.
The number of shares outstanding for APD remains at a similar level compared to 1 year ago.
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
APD has an Altman-Z score of 2.42. 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 (2.42) is better than 70.73% 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.
APD has a Debt to Equity ratio of 1.13. This is in the lower half of the industry: APD underperforms 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.42 |
ROIC/WACC0.8
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.38 indicates that APD should not have too much problems paying its short term obligations.
The Current ratio of APD (1.38) is worse than 76.83% 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 (1.20) which is comparable to the rest of the industry.
| 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.
The Revenue has decreased by -0.52% in the past year.
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
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.
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
APD is valuated rather expensively with a Price/Earnings ratio of 20.20.
The rest of the industry has a similar Price/Earnings ratio as APD.
APD is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.52, which indicates a rather expensive current valuation of APD.
APD's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, APD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than the industry average as 65.85% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.84 |
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)2.23
PEG (5Y)2.86
EPS Next 2Y8.39%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.74%. 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 3.98.
APD's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 7.30%!
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
The earnings of APD are negative and hence is the payout ratio. APD will probably not be able to sustain this dividend level.
The dividend of APD is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-401.55%
EPS Next 2Y8.39%
EPS Next 3Y9.47%
243
-0.73 (-0.3%)
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 Cap54.09B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts76.55
Price Target315.16 (29.7%)
Short Float %2.41%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)-5.58%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-1.46%
EPS NY rev (1m)0.88%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 18.52 | ||
| P/S | 4.49 | ||
| P/FCF | N/A | ||
| P/OCF | 16.61 | ||
| P/B | 3.6 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 15.84 |
EPS(TTM)12.03
EY4.95%
EPS(NY)13.12
Fwd EY5.4%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY6.02%
SpS54.08
BVpS67.5
TBVpS61.85
PEG (NY)2.23
PEG (5Y)2.86
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 | 2.42 |
F-Score2
WACC7.81%
ROIC/WACC0.8
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%.