AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
236.05 USD
-24.64 (-9.45%)
236.1 USD
+0.05 (+0.02%)
Overall APD gets a fundamental rating of 3 out of 10. We evaluated APD against 82 industry peers in the Chemicals industry. There are concerns on the financial health of APD while its profitability can be described as average. APD is valued expensive and it does not seem to be growing.
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.
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
APD's Return On Assets of -0.96% is in line compared to the rest of the industry. APD outperforms 45.12% of its industry peers.
APD has a Return On Equity (-2.63%) which is comparable to the rest of the industry.
APD has a Return On Invested Capital of 6.23%. This is in the better half of the industry: APD outperforms 69.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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 Operating Margin of 23.74%. This is amongst the best in the industry. APD outperforms 91.46% of its industry peers.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
With a Gross Margin value of 31.41%, APD perfoms like the industry average, outperforming 59.76% 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
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.
The number of shares outstanding for APD has been increased compared to 5 years ago.
Compared to 1 year ago, APD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.51 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
APD has a better Altman-Z score (2.51) than 75.61% 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.
APD's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. APD is outperformed by 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.51 |
ROIC/WACC0.81
WACC7.73%
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 76.83% of its industry peers.
A Quick Ratio of 1.20 indicates that APD should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.20, APD perfoms like the industry average, outperforming 45.12% of the companies in the same 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.
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.
The Revenue has decreased by -0.52% in the past year.
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
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
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.
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
With a Price/Earnings ratio of 19.62, APD is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as APD.
When comparing the Price/Earnings ratio of APD to the average of the S&P500 Index (26.34), we can say APD is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.99, which indicates a rather expensive current valuation of APD.
APD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.56. APD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.62 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than 67.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.7 |
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)2.16
PEG (5Y)2.78
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.
Compared to an average industry Dividend Yield of 3.98, APD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, APD has a dividend comparable with the average S&P500 company.
| 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.
APD has decreased its dividend 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.
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%
236.05
-24.64 (-9.45%)
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 Cap52.54B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts76.55
Price Target315.16 (33.51%)
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 | 19.62 | ||
| Fwd PE | 17.99 | ||
| P/S | 4.36 | ||
| P/FCF | N/A | ||
| P/OCF | 16.13 | ||
| P/B | 3.5 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 16.7 |
EPS(TTM)12.03
EY5.1%
EPS(NY)13.12
Fwd EY5.56%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY6.2%
SpS54.08
BVpS67.5
TBVpS61.85
PEG (NY)2.16
PEG (5Y)2.78
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 | 2.51 |
F-Score2
WACC7.73%
ROIC/WACC0.81
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 4 / 10 and the dividend payout ratio is -401.55%.