AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
255.89 USD
-3.23 (-1.25%)
257.113 USD
+1.22 (+0.48%)
We assign a fundamental rating of 3 out of 10 to APD. APD was compared to 83 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.
- In the past year APD had a positive cash flow from operations.
- Of the past 5 years APD 4 years were profitable.
- APD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -0.96%, APD perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
- APD has a Return On Equity of -2.63%. This is comparable to the rest of the industry: APD outperforms 44.58% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.23%, APD is in the better half of the industry, outperforming 69.88% 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 6.11%.
| 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
- With an excellent Operating Margin value of 23.74%, APD belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
- APD's Operating Margin has been stable in the last couple of years.
- APD has a Gross Margin (31.41%) which is in line with 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.
- The number of shares outstanding for APD has been increased compared to 5 years ago.
- APD has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.48 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.48, APD is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
- 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 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.48 |
ROIC/WACC0.5
WACC12.58%
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.
- With a Current ratio value of 1.38, APD is not doing good in the industry: 78.31% of the companies in the same industry are doing better.
- 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.
- The Quick ratio of APD (1.20) 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
- 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.
- Looking at the last year, APD shows a decrease in Revenue. The Revenue has decreased by -0.52% in the last 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
- APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
- Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 6.78% on average per year.
EPS Next Y8.71%
EPS Next 2Y7.93%
EPS Next 3Y8.42%
EPS Next 5Y7.88%
Revenue Next Year3.82%
Revenue Next 2Y4.81%
Revenue Next 3Y5.53%
Revenue Next 5Y6.78%
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
- A Price/Earnings ratio of 21.27 indicates a rather expensive valuation of APD.
- The rest of the industry has a similar Price/Earnings ratio as APD.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, APD is valued a bit cheaper.
- APD is valuated rather expensively with a Price/Forward Earnings ratio of 19.57.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of APD is on the same level as its industry peers.
- APD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.27 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
- APD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. APD is more expensive than 65.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.46 |
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)2.44
PEG (5Y)3.01
EPS Next 2Y7.93%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
- APD has a Yearly Dividend Yield of 2.71%.
- APD's Dividend Yield is a higher than the industry average which is at 2.23.
- Compared to an average S&P500 Dividend Yield of 1.82, APD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
5.2 History
- On average, the dividend of APD grows each year by 7.30%, 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)7.3%
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 2Y7.93%
EPS Next 3Y8.42%
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 2 / 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 21.27 and the Price/Book (PB) ratio is 3.79.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.