AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
FRA:AP3 - Deutsche Boerse Ag - US0091581068 - Common Stock - Currency: EUR
Overall AP3 gets a fundamental rating of 4 out of 10. We evaluated AP3 against 67 industry peers in the Chemicals industry. While AP3 has a great profitability rating, there are quite some concerns on its financial health. AP3 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AP3 was profitable.
In the past year AP3 had a positive cash flow from operations.
Each year in the past 5 years AP3 has been profitable.
In the past 5 years AP3 always reported a positive cash flow from operatings.
1.2 Ratios
AP3's Return On Assets of 3.94% is fine compared to the rest of the industry. AP3 outperforms 70.15% of its industry peers.
AP3 has a better Return On Equity (10.43%) than 70.15% of its industry peers.
AP3's Return On Invested Capital of 6.75% is fine compared to the rest of the industry. AP3 outperforms 70.15% of its industry peers.
AP3 had an Average Return On Invested Capital over the past 3 years of 7.56%. This is in line with the industry average of 6.29%.
| 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
AP3's Profit Margin of 12.76% is amongst the best of the industry. AP3 outperforms 94.03% of its industry peers.
AP3's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.99%, AP3 belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
AP3's Operating Margin has been stable in the last couple of years.
AP3 has a Gross Margin of 31.95%. This is comparable to the rest of the industry: AP3 outperforms 52.24% of its industry peers.
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 | 23.99% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AP3 is destroying value.
AP3 has about the same amout of shares outstanding than it did 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 2.80 indicates that AP3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.80, AP3 is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
AP3 has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.02, AP3 is not doing good in the industry: 77.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.8 |
ROIC/WACC0.82
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.00 indicates that AP3 may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, AP3 is doing worse than 83.58% of the companies in the same industry.
AP3 has a Quick 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.
With a Quick ratio value of 0.85, AP3 is not doing good in the industry: 71.64% 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.
The Revenue is expected to grow by 7.62% on average over the next years.
EPS Next Y-2.51%
EPS Next 2Y2.78%
EPS Next 3Y4.7%
EPS Next 5Y7.56%
Revenue Next Year-1.37%
Revenue Next 2Y1.71%
Revenue Next 3Y3.3%
Revenue Next 5Y7.62%
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.
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 23.68, AP3 is valued on the expensive side.
AP3's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AP3 to the average of the S&P500 Index (27.51), we can say AP3 is valued inline with the index average.
The Price/Forward Earnings ratio is 22.20, which indicates a rather expensive current valuation of AP3.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AP3 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AP3 to the average of the S&P500 Index (35.58), we can say AP3 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 22.2 |
4.2 Price Multiples
64.18% 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 | 17.89 |
4.3 Compensation for Growth
AP3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y2.78%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
AP3 has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
AP3's Dividend Yield is a higher than the industry average which is at 2.99.
AP3's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of AP3 is nicely growing with an annual growth rate of 9.29%!
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.
The dividend of AP3 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP102.68%
EPS Next 2Y2.78%
EPS Next 3Y4.7%
FRA:AP3 (7/14/2025, 7:00:00 PM)
249.4
-4.7 (-1.85%)
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 Cap55.50B
Analysts75.17
Price Target289.43 (16.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend6.03
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)1%
PT rev (3m)-10.59%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-5.17%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 22.2 | ||
| P/S | 5.4 | ||
| P/FCF | N/A | ||
| P/OCF | 19.32 | ||
| P/B | 4.41 | ||
| P/tB | 4.79 | ||
| EV/EBITDA | 17.89 |
EPS(TTM)10.53
EY4.22%
EPS(NY)11.23
Fwd EY4.5%
FCF(TTM)-16.65
FCFYN/A
OCF(TTM)12.91
OCFY5.18%
SpS46.21
BVpS56.52
TBVpS52.03
PEG (NY)N/A
PEG (5Y)2.75
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 | 2.8 |
F-Score4
WACC8.25%
ROIC/WACC0.82
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-2.51%
EPS Next 2Y2.78%
EPS Next 3Y4.7%
EPS Next 5Y7.56%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
Revenue Next Year-1.37%
Revenue Next 2Y1.71%
Revenue Next 3Y3.3%
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%