AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - NYSE:APD - US0091581068 - Common Stock
242.59 USD
-2.07 (-0.85%)
242.59 USD
0 (0%)
Overall APD gets a fundamental rating of 4 out of 10. We evaluated APD against 82 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year APD was profitable.
In the past year APD had a positive cash flow from operations.
APD had positive earnings in each of the past 5 years.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.72%, APD is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
The Return On Equity of APD (9.98%) is better than 79.27% of its industry peers.
The Return On Invested Capital of APD (6.24%) is better than 68.29% of its industry peers.
APD had an Average Return On Invested Capital over the past 3 years of 7.56%. This is in line with the industry average of 6.28%.
| 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%, APD belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
In the last couple of years the Profit Margin of APD has grown nicely.
With an excellent Operating Margin value of 24.01%, APD belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
APD has a Gross Margin (31.87%) which is in line with its industry peers.
In the last couple of years the Gross Margin of APD 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APD 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
Compared to 1 year ago, APD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 indicates that APD 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 2.40, APD is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
APD has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of APD (1.09) is worse than 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.4 |
ROIC/WACC0.8
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.29 indicates that APD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.29, APD is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
APD has a Quick Ratio of 1.12. This is a normal value and indicates that APD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of APD (1.12) is comparable to the rest of the 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.
APD 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, APD shows a decrease in Revenue. The Revenue has decreased by -0.38% in the last year.
APD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
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
Based on estimates for the next years, APD will show a small growth in Earnings Per Share. The EPS will grow by 6.37% on average per year.
APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y-2.39%
EPS Next 2Y2.38%
EPS Next 3Y4.5%
EPS Next 5Y6.37%
Revenue Next Year-1%
Revenue Next 2Y1.75%
Revenue Next 3Y3.03%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
APD is valuated rather expensively with a Price/Earnings ratio of 19.88.
The rest of the industry has a similar Price/Earnings ratio as APD.
APD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
With a Price/Forward Earnings ratio of 18.62, APD is valued on the expensive side.
APD's Price/Forward Earnings is on the same level as the industry average.
APD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 18.62 |
4.2 Price Multiples
APD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. APD is more expensive than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.55 |
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)2.31
EPS Next 2Y2.38%
EPS Next 3Y4.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, APD has a reasonable but not impressive dividend return.
APD's Dividend Yield is a higher than the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.37, APD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 9.29%!
APD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of APD decreased recently.
Dividend Growth(5Y)9.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
APD pays out 101.85% of its income as dividend. 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.
DP101.85%
EPS Next 2Y2.38%
EPS Next 3Y4.5%
242.59
-2.07 (-0.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.38%
Inst Owner Change-1.78%
Ins Owners0.03%
Ins Owner Change0.88%
Market Cap53.99B
Revenue(TTM)12.06B
Net Income(TTM)1.55B
Analysts75.86
Price Target330.22 (36.12%)
Short Float %2.31%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP101.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-0.67%
PT rev (3m)-0.82%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 18.62 | ||
| P/S | 4.48 | ||
| P/FCF | N/A | ||
| P/OCF | 18.29 | ||
| P/B | 3.47 | ||
| P/tB | 3.78 | ||
| EV/EBITDA | 15.55 |
EPS(TTM)12.2
EY5.03%
EPS(NY)13.03
Fwd EY5.37%
FCF(TTM)-20.79
FCFYN/A
OCF(TTM)13.27
OCFY5.47%
SpS54.18
BVpS69.82
TBVpS64.1
PEG (NY)N/A
PEG (5Y)2.31
Graham Number138.44
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%
ROICexgc growth 3Y-11.13%
ROICexgc 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 | 2.4 |
F-Score5
WACC7.84%
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)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
EPS Next Y-2.39%
EPS Next 2Y2.38%
EPS Next 3Y4.5%
EPS Next 5Y6.37%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%
Revenue Next Year-1%
Revenue Next 2Y1.75%
Revenue Next 3Y3.03%
Revenue Next 5Y5.98%
EBIT growth 1Y2.3%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year69.58%
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%
AIR PRODUCTS & CHEMICALS INC / APD FAQ
What is the ChartMill fundamental rating of AIR PRODUCTS & CHEMICALS INC (APD) stock?
ChartMill assigns a fundamental rating of 4 / 10 to APD.
Can you provide the valuation status for AIR PRODUCTS & CHEMICALS INC?
ChartMill assigns a valuation rating of 2 / 10 to AIR PRODUCTS & CHEMICALS INC (APD). This can be considered as Overvalued.
What is the profitability of APD stock?
AIR PRODUCTS & CHEMICALS INC (APD) has a profitability rating of 7 / 10.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.
Is the dividend of AIR PRODUCTS & CHEMICALS INC sustainable?
The dividend rating of AIR PRODUCTS & CHEMICALS INC (APD) is 4 / 10 and the dividend payout ratio is 101.85%.