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AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis

NYSE:APD - New York Stock Exchange, Inc. - US0091581068 - Common Stock - Currency: USD

295.56  -3.68 (-1.23%)

After market: 295.56 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to APD. APD was compared to 85 industry peers in the Chemicals industry. While APD belongs to the best of the industry regarding profitability, there are concerns on its financial health. APD is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

APD had positive earnings in the past year.
APD had a positive operating cash flow in the past year.
Each year in the past 5 years APD has been profitable.
APD had a positive operating cash flow in each of the past 5 years.
APD Yearly Net Income VS EBIT VS OCF VS FCFAPD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B

1.2 Ratios

APD's Return On Assets of 3.94% is fine compared to the rest of the industry. APD outperforms 72.94% of its industry peers.
Looking at the Return On Equity, with a value of 10.43%, APD is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.75%, APD is doing good in the industry, outperforming 67.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for APD is in line with the industry average of 6.81%.
Industry RankSector 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%
APD Yearly ROA, ROE, ROICAPD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

The Profit Margin of APD (12.76%) is better than 90.59% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
APD has a better Operating Margin (23.99%) than 91.76% of its industry peers.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 31.95%, APD is in line with its industry, outperforming 58.82% of the companies in the same industry.
APD's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
APD Yearly Profit, Operating, Gross MarginsAPD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1

2. Health

2.1 Basic Checks

APD 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 APD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, APD has more shares outstanding
The debt/assets ratio for APD is higher compared to a year ago.
APD Yearly Shares OutstandingAPD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
APD Yearly Total Debt VS Total AssetsAPD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.2 Solvency

APD has an Altman-Z score of 2.84. This is not the best score and indicates that APD is in the grey zone with still only limited risk for bankruptcy at the moment.
APD's Altman-Z score of 2.84 is fine compared to the rest of the industry. APD outperforms 76.47% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that APD has dependencies on debt financing.
The Debt to Equity ratio of APD (1.02) is worse than 68.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF N/A
Altman-Z 2.84
ROIC/WACC0.79
WACC8.57%
APD Yearly LT Debt VS Equity VS FCFAPD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

2.3 Liquidity

APD has a Current Ratio of 1.00. This is a bad value and indicates that APD is not financially healthy enough and could expect problems in meeting its short term obligations.
APD has a worse Current ratio (1.00) than 88.24% of its industry peers.
A Quick Ratio of 0.85 indicates that APD may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, APD is not doing good in the industry: 75.29% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.85
APD Yearly Current Assets VS Current LiabilitesAPD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.32% over the past year.
Measured over the past years, APD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.62% on average per year.
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.
APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
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

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 accelerating: in the next years the growth will be better than in the last years.
APD Yearly Revenue VS EstimatesAPD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
APD Yearly EPS VS EstimatesAPD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 24.01, the valuation of APD can be described as rather expensive.
APD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of APD to the average of the S&P500 Index (27.93), we can say APD is valued inline with the index average.
APD is valuated rather expensively with a Price/Forward Earnings ratio of 22.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APD is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.78, APD is valued a bit cheaper.
Industry RankSector Rank
PE 24.01
Fwd PE 22.51
APD Price Earnings VS Forward Price EarningsAPD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.28
APD Per share dataAPD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

APD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.78
EPS Next 2Y2.78%
EPS Next 3Y4.7%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.41%, APD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.55, APD pays a bit more dividend than its industry peers.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 2.41%

5.2 History

The dividend of APD is nicely growing with an annual growth rate of 9.29%!
APD has paid a dividend for at least 10 years, which is a reliable track record.
APD has decreased its dividend recently.
Dividend Growth(5Y)9.29%
Div Incr Years1
Div Non Decr Years1
APD Yearly Dividends per shareAPD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

102.68% of the earnings are spent on dividend by APD. This is not a sustainable payout ratio.
The dividend of APD 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%
APD Yearly Income VS Free CF VS DividendAPD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B
APD Dividend Payout.APD Dividend Payout, showing the Payout Ratio.APD Dividend Payout.PayoutRetained Earnings

AIR PRODUCTS & CHEMICALS INC

NYSE:APD (7/28/2025, 8:07:58 PM)

After market: 295.56 0 (0%)

295.56

-3.68 (-1.23%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners93.27%
Inst Owner Change-0.6%
Ins Owners0.03%
Ins Owner Change-0.85%
Market Cap65.77B
Analysts75.17
Price Target332.96 (12.65%)
Short Float %2.64%
Short Ratio4.81
Dividend
Industry RankSector Rank
Dividend Yield 2.41%
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP102.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date10-01 2025-10-01 (1.79)
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)1.01%
PT rev (3m)-1.79%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-9.09%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-4.39%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.92%
Valuation
Industry RankSector Rank
PE 24.01
Fwd PE 22.51
P/S 5.47
P/FCF N/A
P/OCF 19.59
P/B 4.47
P/tB 4.86
EV/EBITDA 18.28
EPS(TTM)12.31
EY4.16%
EPS(NY)13.13
Fwd EY4.44%
FCF(TTM)-19.47
FCFYN/A
OCF(TTM)15.09
OCFY5.11%
SpS54.02
BVpS66.07
TBVpS60.82
PEG (NY)N/A
PEG (5Y)2.78
Profitability
Industry RankSector 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 RankSector 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 2.84
F-Score4
WACC8.57%
ROIC/WACC0.79
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%