AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP3 - US0091581068 - Common Stock
221.3 EUR
-0.7 (-0.32%)
Overall AP3 gets a fundamental rating of 3 out of 10. We evaluated AP3 against 71 industry peers in the Chemicals industry. There are concerns on the financial health of AP3 while its profitability can be described as average. AP3 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- AP3 had positive earnings in the past year.
- AP3 had a positive operating cash flow in the past year.
- Of the past 5 years AP3 4 years were profitable.
- AP3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of AP3 (-0.96%) is worse than 69.01% of its industry peers.
- Looking at the Return On Equity, with a value of -2.63%, AP3 is doing worse than 73.24% of the companies in the same industry.
- The Return On Invested Capital of AP3 (6.23%) is better than 60.56% of its industry peers.
- AP3 had an Average Return On Invested Capital over the past 3 years of 6.89%. This is in line with the industry average of 7.19%.
| 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
- AP3's Operating Margin of 23.74% is amongst the best of the industry. AP3 outperforms 95.77% of its industry peers.
- In the last couple of years the Operating Margin of AP3 has remained more or less at the same level.
- With a Gross Margin value of 31.41%, AP3 perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
- In the last couple of years the Gross Margin of AP3 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AP3 is destroying value.
- Compared to 1 year ago, AP3 has about the same amount of shares outstanding.
- AP3 has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AP3 is higher compared to a year ago.
2.2 Solvency
- AP3 has an Altman-Z score of 2.51. This is not the best score and indicates that AP3 is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.51, AP3 is in line with its industry, outperforming 50.70% of the companies in the same industry.
- A Debt/Equity ratio of 1.13 is on the high side and indicates that AP3 has dependencies on debt financing.
- AP3's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. AP3 is outperformed by 85.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.51 |
ROIC/WACC0.51
WACC12.2%
2.3 Liquidity
- AP3 has a Current Ratio of 1.38. This is a normal value and indicates that AP3 is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.38, AP3 is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
- AP3 has a Quick Ratio of 1.20. This is a normal value and indicates that AP3 is financially healthy and should not expect problems in meeting its short term obligations.
- AP3 has a Quick ratio of 1.20. This is in the better half of the industry: AP3 outperforms 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- AP3 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.22%.
- The Earnings Per Share has been growing slightly by 7.07% on average over the past years.
- The Revenue has decreased by -0.52% in the past year.
- Measured over the past years, AP3 shows a small growth in Revenue. The Revenue has been growing by 6.33% on average per year.
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
- The Earnings Per Share is expected to grow by 7.88% on average over the next years.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.78, the valuation of AP3 can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of AP3 is on the same level as its industry peers.
- AP3 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 20.03, which indicates a rather expensive current valuation of AP3.
- AP3's Price/Forward Earnings ratio is in line with the industry average.
- AP3's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 20.03 |
4.2 Price Multiples
- AP3's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. AP3 is more expensive than 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AP3 does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.5
PEG (5Y)3.08
EPS Next 2Y7.93%
EPS Next 3Y8.42%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.71%, AP3 has a reasonable but not impressive dividend return.
- AP3's Dividend Yield is a higher than the industry average which is at 2.45.
- AP3'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 AP3 is nicely growing with an annual growth rate of 7.30%!
Dividend Growth(5Y)7.3%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- The earnings of AP3 are negative and hence is the payout ratio. AP3 will probably not be able to sustain this dividend level.
- The dividend of AP3 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 / AP3.DE FAQ
What is the ChartMill fundamental rating of AIR PRODUCTS & CHEMICALS INC (AP3.DE) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AP3.DE.
What is the valuation status for AP3 stock?
ChartMill assigns a valuation rating of 2 / 10 to AIR PRODUCTS & CHEMICALS INC (AP3.DE). This can be considered as Overvalued.
How profitable is AIR PRODUCTS & CHEMICALS INC (AP3.DE) stock?
AIR PRODUCTS & CHEMICALS INC (AP3.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for AP3 stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (AP3.DE) is 2 / 10.
Is the dividend of AIR PRODUCTS & CHEMICALS INC sustainable?
The dividend rating of AIR PRODUCTS & CHEMICALS INC (AP3.DE) is 4 / 10 and the dividend payout ratio is -401.55%.