AIR PRODUCTS & CHEMICALS INC (AP3.DE) Stock Fundamental Analysis
FRA:AP3 - Deutsche Boerse Ag - US0091581068 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to AP3. AP3 was compared to 66 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.
AP3 had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.94%, AP3 is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.43%, AP3 is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.75%, AP3 is doing good in the industry, outperforming 69.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AP3 is in line with the industry average of 6.51%.
| 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 has a Profit Margin of 12.76%. This is amongst the best in the industry. AP3 outperforms 93.94% of its industry peers.
In the last couple of years the Profit Margin of AP3 has grown nicely.
Looking at the Operating Margin, with a value of 23.99%, AP3 belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
AP3's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.95%, AP3 is in line with its industry, outperforming 50.00% 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 | 23.99% | ||
| 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.
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 2.70. 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 2.70, AP3 is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that AP3 has dependencies on debt financing.
AP3 has a worse Debt to Equity ratio (1.02) than 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.7 |
ROIC/WACC0.8
WACC8.45%
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.
AP3's Current ratio of 1.00 is on the low side compared to the rest of the industry. AP3 is outperformed by 84.85% of its industry peers.
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.
The Quick ratio of AP3 (0.85) is worse than 75.76% of its industry peers.
| 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.
Looking at the last year, AP3 shows a decrease in Revenue. The Revenue has decreased by -1.09% in the last 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)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
AP3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.92% yearly.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y-2.74%
EPS Next 2Y2.38%
EPS Next 3Y4.67%
EPS Next 5Y7.92%
Revenue Next Year-1.56%
Revenue Next 2Y1.56%
Revenue Next 3Y3.27%
Revenue Next 5Y6.76%
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.
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
A Price/Earnings ratio of 22.28 indicates a rather expensive valuation of AP3.
AP3's Price/Earnings is on the same level as the industry average.
AP3 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.05, 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 (22.20), we can say AP3 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.28 | ||
| Fwd PE | 21.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AP3 is valued a bit more expensive than the industry average as 62.12% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.01 |
4.3 Compensation for Growth
The decent profitability rating of AP3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.58
EPS Next 2Y2.38%
EPS Next 3Y4.67%
5. Dividend
5.1 Amount
AP3 has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of AP3 has falen by -20.01%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AP3's Dividend Yield is a higher than the industry average which is at 3.12.
AP3's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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 Years2
Div Non Decr Years2
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 (5/27/2025, 7:00:00 PM)
241.5
+1.5 (+0.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap53.74B
Analysts75.17
Price Target294.07 (21.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend6.23
Dividend Growth(5Y)9.29%
DP102.68%
Div Incr Years2
Div Non Decr Years2
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)-9.15%
PT rev (3m)-12.21%
EPS NQ rev (1m)-9.52%
EPS NQ rev (3m)-10.44%
EPS NY rev (1m)-4.63%
EPS NY rev (3m)-5.52%
Revenue NQ rev (1m)-2.9%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.28 | ||
| Fwd PE | 21.05 | ||
| P/S | 5.08 | ||
| P/FCF | N/A | ||
| P/OCF | 18.17 | ||
| P/B | 4.15 | ||
| P/tB | 4.51 | ||
| EV/EBITDA | 17.01 |
EPS(TTM)10.84
EY4.49%
EPS(NY)11.47
Fwd EY4.75%
FCF(TTM)-17.14
FCFYN/A
OCF(TTM)13.29
OCFY5.5%
SpS47.57
BVpS58.18
TBVpS53.56
PEG (NY)N/A
PEG (5Y)2.58
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 | 2.7 |
F-Score4
WACC8.45%
ROIC/WACC0.8
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 5Y7.92%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
Revenue Next Year-1.56%
Revenue Next 2Y1.56%
Revenue Next 3Y3.27%
Revenue Next 5Y6.76%
EBIT growth 1Y2.88%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year68.68%
EBIT Next 3Y24.82%
EBIT Next 5Y20.12%
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%