AIR PRODUCTS & CHEMICALS INC (APD)
US0091581068 - Common Stock
APD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While APD belongs to the best of the industry regarding profitability, there are concerns on its financial health. APD is valied quite expensively at the moment, while it does show a decent growth rate.
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
Looking at the Return On Assets, with a value of 9.67%, APD belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
APD has a better Return On Equity (22.47%) than 91.57% of its industry peers.
With a decent Return On Invested Capital value of 6.68%, APD is doing good in the industry, outperforming 67.47% of the companies in the same industry.
APD had an Average Return On Invested Capital over the past 3 years of 7.56%. This is in line with the industry average of 7.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 22.47% | ||
| ROIC | 6.68% |
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
With an excellent Profit Margin value of 31.64%, APD belongs to the best of the industry, outperforming 97.59% of the companies in the same industry.
APD's Profit Margin has improved in the last couple of years.
APD's Operating Margin of 24.29% is amongst the best of the industry. APD outperforms 90.36% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 32.49%, APD is doing good in the industry, outperforming 62.65% of the companies in the same industry.
APD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% |
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
APD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
APD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, APD has more shares outstanding
The debt/assets ratio for APD is higher compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.80 indicates that APD is somewhat dependend on debt financing.
APD has a Debt to Equity ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC7.96%
2.3 Liquidity
APD has a Current Ratio of 1.52. 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 (1.52) than 68.67% of its industry peers.
A Quick Ratio of 1.34 indicates that APD should not have too much problems paying its short term obligations.
APD's Quick ratio of 1.34 is in line compared to the rest of the industry. APD outperforms 48.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.99% 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 -3.96%.
Measured over the past years, APD shows a small growth in Revenue. The Revenue has been growing by 6.29% on average per year.
EPS 1Y (TTM)7.99%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%13.02%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.12%
3.2 Future
APD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.59% yearly.
The Revenue is expected to grow by 7.93% on average over the next years.
EPS Next Y4.34%
EPS Next 2Y7.11%
EPS Next 3Y9.06%
EPS Next 5Y8.59%
Revenue Next Year1.2%
Revenue Next 2Y4.26%
Revenue Next 3Y6.66%
Revenue Next 5Y7.93%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.73, APD is valued on the expensive side.
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 27.73.
Based on the Price/Forward Earnings ratio of 22.75, the valuation of APD can be described as rather expensive.
Based on the Price/Forward Earnings ratio, APD is valued a bit more expensive than 63.86% of the companies in the same industry.
APD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 22.75 |
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 72.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.48 |
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.
The excellent profitability rating of APD may justify a higher PE ratio.
PEG (NY)5.47
PEG (5Y)2.75
EPS Next 2Y7.11%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
APD's Dividend Yield is a higher than the industry average which is at 3.28.
Compared to an average S&P500 Dividend Yield of 2.34, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 9.29%!
APD has paid a dividend for at least 10 years, which is a reliable track record.
APD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.29%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
APD pays out 40.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of APD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.88%
EPS Next 2Y7.11%
EPS Next 3Y9.06%
AIR PRODUCTS & CHEMICALS INC
NYSE:APD (12/20/2024, 8:04:00 PM)
After market: 294 -0.99 (-0.34%)294.99
+1.82 (+0.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.9%
Inst Owner Change1.08%
Ins Owners0.33%
Ins Owner Change7.29%
Market Cap65.60B
Analysts77.24
Price Target351.66 (19.21%)
Short Float %1.53%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Dividend Growth(5Y)9.29%
DP40.88%
Div Incr Years6
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.85%
Min EPS beat(2)1.25%
Max EPS beat(2)4.45%
EPS beat(4)3
Avg EPS beat(4)0.84%
Min EPS beat(4)-7.08%
Max EPS beat(4)4.72%
EPS beat(8)6
Avg EPS beat(8)0.49%
EPS beat(12)8
Avg EPS beat(12)0.57%
EPS beat(16)8
Avg EPS beat(16)-0.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-2.63%
Max Revenue beat(2)-1.8%
Revenue beat(4)0
Avg Revenue beat(4)-4.04%
Min Revenue beat(4)-6.94%
Max Revenue beat(4)-1.8%
Revenue beat(8)1
Avg Revenue beat(8)-3.92%
Revenue beat(12)4
Avg Revenue beat(12)-0.96%
Revenue beat(16)8
Avg Revenue beat(16)0.17%
PT rev (1m)5.51%
PT rev (3m)16.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.41%
EPS NY rev (1m)-2.91%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.15%
Revenue NY rev (1m)-2.56%
Revenue NY rev (3m)-3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.73 | ||
| Fwd PE | 22.75 | ||
| P/S | 5.42 | ||
| P/FCF | N/A | ||
| P/OCF | 17.99 | ||
| P/B | 3.85 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)12.43
EY4.21%
EPS(NY)12.97
Fwd EY4.4%
FCF(TTM)-14.16
FCFYN/A
OCF(TTM)16.4
OCFY5.56%
SpS54.41
BVpS76.61
TBVpS71.14
PEG (NY)5.47
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.67% | ||
| ROE | 22.47% | ||
| ROCE | 8.31% | ||
| ROIC | 6.68% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 7.58% | ||
| OM | 24.29% | ||
| PM (TTM) | 31.64% | ||
| GM | 32.49% | ||
| 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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 468.38% | ||
| Cap/Sales | 56.17% | ||
| Interest Coverage | 14.83 | ||
| Cash Conversion | 83.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | N/A |
F-Score5
WACC7.96%
ROIC/WACC0.84
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)7.99%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%13.02%
EPS Next Y4.34%
EPS Next 2Y7.11%
EPS Next 3Y9.06%
EPS Next 5Y8.59%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.12%
Revenue Next Year1.2%
Revenue Next 2Y4.26%
Revenue Next 3Y6.66%
Revenue Next 5Y7.93%
EBIT growth 1Y7.32%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year77.86%
EBIT Next 3Y30.22%
EBIT Next 5Y21.25%
FCF growth 1Y-121.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.74%
OCF growth 3Y2.95%
OCF growth 5Y4.19%