AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AP3 - US0091581068 - Common Stock
222 EUR
-0.1 (-0.05%)
Taking everything into account, AP3 scores 3 out of 10 in our fundamental rating. AP3 was compared to 69 industry peers in the Chemicals industry. AP3 has a medium profitability rating, but doesn't score so well on its financial health evaluation. AP3 does not seem to be growing, but still is valued expensively.
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.
- AP3 had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years AP3 had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AP3 (-0.96%) is worse than 69.57% of its industry peers.
- AP3's Return On Equity of -2.63% is on the low side compared to the rest of the industry. AP3 is outperformed by 73.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.23%, AP3 is in the better half of the industry, outperforming 63.77% of the companies in the same industry.
- 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 6.70%.
| 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%, AP3 belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
- AP3's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 31.41%, AP3 perfoms like the industry average, outperforming 42.03% 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.
- The number of shares outstanding for AP3 remains at a similar level compared to 1 year ago.
- The number of shares outstanding for AP3 has been increased compared to 5 years ago.
- Compared to 1 year ago, AP3 has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.53 indicates that AP3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.53, AP3 perfoms like the industry average, outperforming 55.07% 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.
- Looking at the Debt to Equity ratio, with a value of 1.13, AP3 is doing worse than 85.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.53 |
ROIC/WACC0.51
WACC12.28%
2.3 Liquidity
- A Current Ratio of 1.38 indicates that AP3 should not have too much problems paying its short term obligations.
- AP3's Current ratio of 1.38 is on the low side compared to the rest of the industry. AP3 is outperformed by 66.67% of its industry peers.
- A Quick Ratio of 1.20 indicates that AP3 should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.20, AP3 is in line with its industry, outperforming 59.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The earnings per share for AP3 have decreased by -3.22% in the last year.
- AP3 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.07% yearly.
- The Revenue has decreased by -0.52% in the past 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
- Based on estimates for the next years, AP3 will show a small growth in Earnings Per Share. The EPS will grow by 7.88% on average per year.
- AP3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
EPS Next Y9.02%
EPS Next 2Y8.07%
EPS Next 3Y8.66%
EPS Next 5Y7.88%
Revenue Next Year3.79%
Revenue Next 2Y4.86%
Revenue Next 3Y5.61%
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
- The Price/Earnings ratio is 21.60, which indicates a rather expensive current valuation of AP3.
- AP3's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AP3 is valued a bit cheaper.
- The Price/Forward Earnings ratio is 19.82, which indicates a rather expensive current valuation of AP3.
- AP3's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of AP3 to the average of the S&P500 Index (24.26), we can say AP3 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 19.82 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.95 |
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)2.39
PEG (5Y)3.06
EPS Next 2Y8.07%
EPS Next 3Y8.66%
5. Dividend
5.1 Amount
- AP3 has a Yearly Dividend Yield of 2.69%.
- AP3's Dividend Yield is a higher than the industry average which is at 2.33.
- Compared to an average S&P500 Dividend Yield of 1.82, AP3 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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 2Y8.07%
EPS Next 3Y8.66%
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 1 / 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%.