AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
FRA:AP3 - Deutsche Boerse Ag - US0091581068 - Common Stock - Currency: EUR
AP3 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Chemicals industry. While AP3 has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, AP3 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AP3 had positive earnings in the past year.
In the past year AP3 had a positive cash flow from operations.
Each year in the past 5 years AP3 has been profitable.
AP3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AP3 has a better Return On Assets (3.94%) than 68.12% of its industry peers.
AP3's Return On Equity of 10.43% is fine compared to the rest of the industry. AP3 outperforms 68.12% of its industry peers.
AP3 has a better Return On Invested Capital (6.75%) than 68.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AP3 is in line with the industry average of 6.66%.
| 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
Looking at the Profit Margin, with a value of 12.76%, AP3 belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
AP3's Profit Margin has improved in the last couple of years.
AP3 has a better Operating Margin (23.99%) than 95.65% of its industry peers.
In the last couple of years the Operating Margin of AP3 has remained more or less at the same level.
AP3 has a Gross Margin (31.95%) which is in line with its industry peers.
AP3's Gross Margin has been stable in the last couple of years.
| 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
AP3 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 AP3 remains at a similar level compared to 1 year ago.
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
An Altman-Z score of 2.73 indicates that AP3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
AP3's Altman-Z score of 2.73 is fine compared to the rest of the industry. AP3 outperforms 66.67% of its industry peers.
AP3 has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AP3 (1.02) is worse than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.73 |
ROIC/WACC0.83
WACC8.17%
2.3 Liquidity
AP3 has a Current Ratio of 1.00. This is a bad value and indicates that AP3 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.00, AP3 is doing worse than 84.06% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that AP3 may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, AP3 is not doing good in the industry: 73.91% 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
AP3 shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.32%.
AP3 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.62% yearly.
The Revenue has decreased by -1.09% in the past year.
The Revenue has been growing slightly by 6.29% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.56% on average over the next years.
Based on estimates for the next years, AP3 will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
EPS Next Y-2.74%
EPS Next 2Y2.38%
EPS Next 3Y4.67%
EPS Next 5Y7.56%
Revenue Next Year-1.36%
Revenue Next 2Y1.61%
Revenue Next 3Y3.29%
Revenue Next 5Y7.62%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.43, AP3 is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AP3 is on the same level as its industry peers.
When comparing the Price/Earnings ratio of AP3 to the average of the S&P500 Index (26.34), we can say AP3 is valued inline with the index average.
The Price/Forward Earnings ratio is 21.20, which indicates a rather expensive current valuation of AP3.
The rest of the industry has a similar Price/Forward Earnings ratio as AP3.
AP3's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 21.2 |
4.2 Price Multiples
60.87% of the companies in the same industry are cheaper than AP3, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.21 |
4.3 Compensation for Growth
The decent profitability rating of AP3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.6
EPS Next 2Y2.38%
EPS Next 3Y4.67%
5. Dividend
5.1 Amount
AP3 has a Yearly Dividend Yield of 2.53%.
AP3's Dividend Yield is a higher than the industry average which is at 3.00.
AP3's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
On average, the dividend of AP3 grows each year by 9.29%, which is quite nice.
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 AP3. This is not a sustainable payout ratio.
AP3's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP102.68%
EPS Next 2Y2.38%
EPS Next 3Y4.67%
FRA:AP3 (6/19/2025, 7:00:00 PM)
240
-1.8 (-0.74%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap53.41B
Analysts75.17
Price Target286.56 (19.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend6.12
Dividend Growth(5Y)9.29%
DP102.68%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-2.56%
PT rev (3m)-17.18%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)-9.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.52%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 21.2 | ||
| P/S | 5.11 | ||
| P/FCF | N/A | ||
| P/OCF | 18.3 | ||
| P/B | 4.18 | ||
| P/tB | 4.54 | ||
| EV/EBITDA | 17.21 |
EPS(TTM)10.7
EY4.46%
EPS(NY)11.32
Fwd EY4.72%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)13.11
OCFY5.46%
SpS46.94
BVpS57.41
TBVpS52.85
PEG (NY)N/A
PEG (5Y)2.6
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 | 2.73 |
F-Score4
WACC8.17%
ROIC/WACC0.83
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-2.74%
EPS Next 2Y2.38%
EPS Next 3Y4.67%
EPS Next 5Y7.56%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
Revenue Next Year-1.36%
Revenue Next 2Y1.61%
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%