AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
NYSE:APD - New York Stock Exchange, Inc. - US0091581068 - Common Stock - Currency: USD
APD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While APD has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, APD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year APD was profitable.
In the past year APD had a positive cash flow from operations.
In the past 5 years APD has always been profitable.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.94%, APD is doing good in the industry, outperforming 71.76% of the companies in the same industry.
APD has a Return On Equity of 10.43%. This is in the better half of the industry: APD outperforms 72.94% of its industry peers.
APD has a Return On Invested Capital of 6.75%. This is in the better half of the industry: APD outperforms 67.06% 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 6.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.43% | ||
| ROIC | 6.75% |
ROA(3y)8.39%
ROA(5y)8.09%
ROE(3y)18.57%
ROE(5y)17.37%
ROIC(3y)7.56%
ROIC(5y)7.62%
1.3 Margins
APD has a Profit Margin of 12.76%. This is amongst the best in the industry. APD outperforms 90.59% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.99%, APD belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
APD has a Gross Margin of 31.95%. This is comparable to the rest of the industry: APD outperforms 58.82% 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 | 23.99% | ||
| PM (TTM) | 12.76% | ||
| GM | 31.95% |
OM growth 3Y3.42%
OM growth 5Y-0.02%
PM growth 3Y15.88%
PM growth 5Y9.9%
GM growth 3Y2.26%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APD is destroying value.
APD has about the same amout of shares outstanding than it did 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 2.75 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
APD's Altman-Z score of 2.75 is fine compared to the rest of the industry. APD outperforms 76.47% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that APD has dependencies on debt financing.
APD's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. APD is outperformed by 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.75 |
ROIC/WACC0.82
WACC8.28%
2.3 Liquidity
APD has a Current Ratio of 1.00. This is a bad value and indicates that APD is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, APD is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that APD may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, APD is not doing good in the industry: 75.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.32% over the past year.
APD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
APD shows a decrease in Revenue. In the last year, the revenue decreased by -1.09%.
APD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
EPS 1Y (TTM)4.32%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-5.61%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
3.2 Future
APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.56% yearly.
Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
EPS Next Y-2.65%
EPS Next 2Y2.54%
EPS Next 3Y4.61%
EPS Next 5Y7.56%
Revenue Next Year-1.28%
Revenue Next 2Y1.71%
Revenue Next 3Y3.29%
Revenue Next 5Y7.62%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.91, the valuation of APD can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of APD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of APD to the average of the S&P500 Index (27.15), we can say APD is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.58, the valuation of APD can be described as rather expensive.
APD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.60. APD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APD indicates a slightly more expensive valuation: APD is more expensive than 64.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.42 |
4.3 Compensation for Growth
APD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.66
EPS Next 2Y2.54%
EPS Next 3Y4.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.53%, APD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, APD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 9.29%!
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)9.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
102.68% of the earnings are spent on dividend by APD. This is not a sustainable payout ratio.
The dividend of APD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP102.68%
EPS Next 2Y2.54%
EPS Next 3Y4.61%
282.06
-0.29 (-0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner Change3.05%
Ins Owners0.03%
Ins Owner Change-0.86%
Market Cap62.77B
Analysts75.17
Price Target329.62 (16.86%)
Short Float %1.9%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP102.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.19%
Min EPS beat(2)-5.81%
Max EPS beat(2)-0.56%
EPS beat(4)2
Avg EPS beat(4)-0.17%
Min EPS beat(4)-5.81%
Max EPS beat(4)4.45%
EPS beat(8)5
Avg EPS beat(8)-0.21%
EPS beat(12)7
Avg EPS beat(12)0.06%
EPS beat(16)8
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)-1.23%
Revenue beat(8)0
Avg Revenue beat(8)-4.15%
Revenue beat(12)3
Avg Revenue beat(12)-1.71%
Revenue beat(16)6
Avg Revenue beat(16)-0.36%
PT rev (1m)0.18%
PT rev (3m)-8.04%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)-9.38%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-5.31%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 21.58 | ||
| P/S | 5.22 | ||
| P/FCF | N/A | ||
| P/OCF | 18.69 | ||
| P/B | 4.27 | ||
| P/tB | 4.64 | ||
| EV/EBITDA | 17.42 |
EPS(TTM)12.31
EY4.36%
EPS(NY)13.07
Fwd EY4.63%
FCF(TTM)-19.47
FCFYN/A
OCF(TTM)15.09
OCFY5.35%
SpS54.02
BVpS66.07
TBVpS60.82
PEG (NY)N/A
PEG (5Y)2.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 10.43% | ||
| ROCE | 8.57% | ||
| ROIC | 6.75% | ||
| ROICexc | 7.08% | ||
| ROICexgc | 7.34% | ||
| OM | 23.99% | ||
| PM (TTM) | 12.76% | ||
| GM | 31.95% | ||
| FCFM | N/A |
ROA(3y)8.39%
ROA(5y)8.09%
ROE(3y)18.57%
ROE(5y)17.37%
ROIC(3y)7.56%
ROIC(5y)7.62%
ROICexc(3y)8.39%
ROICexc(5y)9.21%
ROICexgc(3y)8.81%
ROICexgc(5y)9.81%
ROCE(3y)9.41%
ROCE(5y)9.47%
ROICexcg growth 3Y-11.13%
ROICexcg growth 5Y-10.1%
ROICexc growth 3Y-10.01%
ROICexc growth 5Y-9.24%
OM growth 3Y3.42%
OM growth 5Y-0.02%
PM growth 3Y15.88%
PM growth 5Y9.9%
GM growth 3Y2.26%
GM growth 5Y-0.31%
F-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 515.65% | ||
| Cap/Sales | 63.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 2.75 |
F-Score4
WACC8.28%
ROIC/WACC0.82
Cap/Depr(3y)342.56%
Cap/Depr(5y)285.18%
Cap/Sales(3y)38.64%
Cap/Sales(5y)33.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.32%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-5.61%
EPS Next Y-2.65%
EPS Next 2Y2.54%
EPS Next 3Y4.61%
EPS Next 5Y7.56%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
Revenue Next Year-1.28%
Revenue Next 2Y1.71%
Revenue Next 3Y3.29%
Revenue Next 5Y7.62%
EBIT growth 1Y2.88%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year68.68%
EBIT Next 3Y24.82%
EBIT Next 5Y19.65%
FCF growth 1Y-8428.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.28%
OCF growth 3Y2.95%
OCF growth 5Y4.19%