AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
259.12 USD
-3.5 (-1.33%)
259.12 USD
0 (0%)
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
- APD has a Return On Assets (-0.96%) which is in line with its industry peers.
- 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.
- The Average Return On Invested Capital over the past 3 years 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
- APD's Operating Margin of 23.74% is amongst the best of the industry. APD outperforms 91.57% of its industry peers.
- APD's Operating Margin has been stable in the last couple of years.
- APD's Gross Margin of 31.41% is in line compared to the rest of the industry. APD outperforms 59.04% 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 | 23.74% | ||
| 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.
- 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
- An Altman-Z score of 2.52 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 (2.52) than 67.47% 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.
- The Debt to Equity ratio of APD (1.13) is worse than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.52 |
ROIC/WACC0.49
WACC12.6%
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 Current ratio of 1.38. This is in the lower half of the industry: APD underperforms 78.31% 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 in line with 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
- Based on estimates for the next years, APD will show a small growth in Earnings Per Share. The EPS will grow by 7.88% on average per year.
- The Revenue is expected to grow by 6.78% on average over the next years.
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
- 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
- With a Price/Earnings ratio of 21.54, APD is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as APD.
- APD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.87.
- With a Price/Forward Earnings ratio of 19.81, APD is valued on the expensive side.
- APD's Price/Forward Earnings ratio is in line with the industry average.
- APD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 19.81 |
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 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.79 |
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)2.47
PEG (5Y)3.05
EPS Next 2Y7.93%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.71%, APD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.23, APD pays a bit more dividend than its industry peers.
- APD's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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 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 21.54 and the Price/Book (PB) ratio is 3.84.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.