AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
FRA:AP3 - US0091581068 - Common Stock
246 EUR
-5.1 (-2.03%)
AP3 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Chemicals industry. While AP3 has a great profitability rating, there are quite some concerns on its financial health. AP3 has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years AP3 has always been profitable.
AP3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.72%, AP3 is in the better half of the industry, outperforming 66.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.98%, AP3 is in the better half of the industry, outperforming 72.06% of the companies in the same industry.
AP3's Return On Invested Capital of 6.24% is fine compared to the rest of the industry. AP3 outperforms 64.71% 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 7.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 9.98% | ||
| ROIC | 6.24% |
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 12.86%, AP3 belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
In the last couple of years the Profit Margin of AP3 has grown nicely.
The Operating Margin of AP3 (24.01%) is better than 97.06% of its industry peers.
In the last couple of years the Operating Margin of AP3 has remained more or less at the same level.
The Gross Margin of AP3 (31.87%) is comparable to the rest of the 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 | 24.01% | ||
| PM (TTM) | 12.86% | ||
| GM | 31.87% |
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.
AP3 has about the same amout of shares outstanding than it did 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 2.63 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 2.63, AP3 is in the better half of the industry, outperforming 61.76% of the companies in the same industry.
AP3 has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.09, AP3 is not doing good in the industry: 79.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.63 |
ROIC/WACC0.77
WACC8.15%
2.3 Liquidity
A Current Ratio of 1.29 indicates that AP3 should not have too much problems paying its short term obligations.
The Current ratio of AP3 (1.29) is worse than 77.94% of its industry peers.
A Quick Ratio of 1.12 indicates that AP3 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, AP3 is in line with its industry, outperforming 51.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.50% over the past year.
The Earnings Per Share has been growing by 8.62% on average over the past years. This is quite good.
The Revenue has decreased by -0.38% in the past year.
Measured over the past years, AP3 shows a small growth in Revenue. The Revenue has been growing by 6.29% on average per year.
EPS 1Y (TTM)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%
3.2 Future
The Earnings Per Share is expected to grow by 6.37% 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 5.98% on average per year.
EPS Next Y-2.39%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
EPS Next 5Y6.37%
Revenue Next Year-0.99%
Revenue Next 2Y1.76%
Revenue Next 3Y3.06%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
AP3 is valuated rather expensively with a Price/Earnings ratio of 23.59.
The rest of the industry has a similar Price/Earnings ratio as AP3.
The average S&P500 Price/Earnings ratio is at 27.06. AP3 is around the same levels.
AP3 is valuated rather expensively with a Price/Forward Earnings ratio of 22.04.
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 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 22.04 |
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 69.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.82 |
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)2.74
EPS Next 2Y2.49%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
AP3 has a Yearly Dividend Yield of 2.47%.
AP3's Dividend Yield is a higher than the industry average which is at 3.10.
Compared to an average S&P500 Dividend Yield of 2.41, AP3 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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
101.85% 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.
DP101.85%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
FRA:AP3 (9/5/2025, 7:00:00 PM)
246
-5.1 (-2.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.13%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap54.75B
Analysts74.48
Price Target287.13 (16.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend6.02
Dividend Growth(5Y)9.29%
DP101.85%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.82%
Min EPS beat(2)-5.81%
Max EPS beat(2)2.18%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-5.81%
Max EPS beat(4)2.18%
EPS beat(8)5
Avg EPS beat(8)-0.1%
EPS beat(12)8
Avg EPS beat(12)0.28%
EPS beat(16)9
Avg EPS beat(16)0.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.97%
Revenue beat(12)3
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)0%
PT rev (3m)0.2%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 22.04 | ||
| P/S | 5.31 | ||
| P/FCF | N/A | ||
| P/OCF | 21.69 | ||
| P/B | 4.12 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 17.82 |
EPS(TTM)10.43
EY4.24%
EPS(NY)11.16
Fwd EY4.54%
FCF(TTM)-17.78
FCFYN/A
OCF(TTM)11.34
OCFY4.61%
SpS46.32
BVpS59.69
TBVpS54.8
PEG (NY)N/A
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 9.98% | ||
| ROCE | 7.84% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 6.9% | ||
| OM | 24.01% | ||
| PM (TTM) | 12.86% | ||
| GM | 31.87% | ||
| 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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 494.72% | ||
| Cap/Sales | 62.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.63 |
F-Score5
WACC8.15%
ROIC/WACC0.77
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)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
EPS Next Y-2.39%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
EPS Next 5Y6.37%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%
Revenue Next Year-0.99%
Revenue Next 2Y1.76%
Revenue Next 3Y3.06%
Revenue Next 5Y5.98%
EBIT growth 1Y2.3%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year69.55%
EBIT Next 3Y25.04%
EBIT Next 5Y18.31%
FCF growth 1Y-533.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.32%
OCF growth 3Y2.95%
OCF growth 5Y4.19%