AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
258.96 USD
+0.03 (+0.01%)
258.96 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to APD. APD was compared to 81 industry peers in the Chemicals industry. While APD is still in line with the averages on profitability rating, there are concerns on its financial health. APD does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year APD was profitable.
APD had a positive operating cash flow in the past year.
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
With a Return On Assets value of -0.96%, APD perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
APD has a Return On Equity (-2.63%) which is in line with its industry peers.
APD has a better Return On Invested Capital (6.23%) than 69.14% 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 6.07%.
| 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 91.36% of its industry peers.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
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
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
APD has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 1.13 is on the high side and indicates that APD has dependencies on debt 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 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC8.28%
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 has a worse Current ratio (1.38) than 77.78% of its industry peers.
A Quick Ratio of 1.20 indicates that APD should not have too much problems paying its short term obligations.
APD has a Quick ratio of 1.20. This is comparable to the rest of the industry: APD outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
APD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.22%.
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.
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
APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.29% yearly.
The Revenue is expected to grow by 5.48% on average over the next years.
EPS Next Y8.12%
EPS Next 2Y8.59%
EPS Next 3Y10.45%
EPS Next 5Y6.29%
Revenue Next Year4.58%
Revenue Next 2Y5.11%
Revenue Next 3Y7.96%
Revenue Next 5Y5.48%
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.
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 21.53, which indicates a rather expensive current 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 26.15.
A Price/Forward Earnings ratio of 19.91 indicates a rather expensive valuation of APD.
The rest of the industry has a similar Price/Forward Earnings ratio as APD.
APD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than 71.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.61 |
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)2.65
PEG (5Y)3.05
EPS Next 2Y8.59%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.85%.
APD's Dividend Yield is a higher than the industry average which is at 4.16.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
5.2 History
On average, the dividend of APD grows each year by 7.31%, which is quite nice.
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)7.31%
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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-401.55%
EPS Next 2Y8.59%
EPS Next 3Y10.45%
258.96
+0.03 (+0.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.38%
Inst Owner Change-1.26%
Ins Owners0.03%
Ins Owner Change0.88%
Market Cap57.63B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts75.86
Price Target316.88 (22.37%)
Short Float %2.27%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
Yearly Dividend7.12
Dividend Growth(5Y)7.31%
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)-4.68%
PT rev (3m)-5.07%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-1.47%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 19.91 | ||
| P/S | 4.79 | ||
| P/FCF | N/A | ||
| P/OCF | 17.7 | ||
| P/B | 3.84 | ||
| P/tB | 4.19 | ||
| EV/EBITDA | 16.61 |
EPS(TTM)12.03
EY4.65%
EPS(NY)13.01
Fwd EY5.02%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY5.65%
SpS54.09
BVpS67.51
TBVpS61.86
PEG (NY)2.65
PEG (5Y)3.05
Graham Number135.18
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 | 250 | ||
| Cash Conversion | 73.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score2
WACC8.28%
ROIC/WACC0.75
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 Y8.12%
EPS Next 2Y8.59%
EPS Next 3Y10.45%
EPS Next 5Y6.29%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y-1.77%
Revenue growth 5Y6.33%
Sales Q2Q%-0.65%
Revenue Next Year4.58%
Revenue Next 2Y5.11%
Revenue Next 3Y7.96%
Revenue Next 5Y5.48%
EBIT growth 1Y-2.79%
EBIT growth 3Y5.8%
EBIT growth 5Y5.33%
EBIT Next Year87.67%
EBIT Next 3Y30.14%
EBIT Next 5Y17.49%
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 1 / 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 1 / 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%.