AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
NYSE:APD - New York Stock Exchange, Inc. - US0091581068 - Common Stock - Currency: USD
Overall APD gets a fundamental rating of 4 out of 10. We evaluated APD against 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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years APD has always been profitable.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
APD has a better Return On Assets (3.94%) than 71.76% of its industry peers.
APD has a Return On Equity of 10.43%. This is in the better half of the industry: APD outperforms 75.29% of its industry peers.
APD has a Return On Invested Capital of 6.75%. This is in the better half of the industry: APD outperforms 65.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APD is in line with the industry average of 7.01%.
| 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
The Profit Margin of APD (12.76%) is better than 92.94% of its industry peers.
In the last couple of years the Profit Margin of APD has grown nicely.
APD has a better Operating Margin (23.99%) than 91.76% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
APD has a Gross Margin of 31.95%. This is comparable to the rest of the industry: APD outperforms 60.00% of its industry peers.
APD's Gross Margin has been stable in the last couple of years.
| 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
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.
The number of shares outstanding for APD has been increased compared to 5 years ago.
The debt/assets ratio for APD is higher compared to a year ago.
2.2 Solvency
APD has an Altman-Z score of 2.71. 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.
Looking at the Altman-Z score, with a value of 2.71, APD is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
APD has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
APD has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: APD underperforms 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.71 |
ROIC/WACC0.81
WACC8.31%
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.
The Current ratio of APD (1.00) is worse than 85.88% of its industry peers.
APD has a Quick 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 Quick ratio of 0.85. This is in the lower half of the industry: APD underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
APD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.32%.
The Earnings Per Share has been growing by 8.62% on average over the past years. This is quite good.
APD shows a decrease in Revenue. In the last year, the revenue decreased by -1.09%.
Measured over the past years, APD 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
APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.92% yearly.
Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
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.
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
Based on the Price/Earnings ratio of 21.91, the valuation of APD can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of APD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of APD to the average of the S&P500 Index (26.03), we can say APD is valued inline with the index average.
The Price/Forward Earnings ratio is 20.70, which indicates a rather expensive current valuation of APD.
APD's Price/Forward Earnings ratio is in line with the industry average.
APD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 20.7 |
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 67.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
The decent profitability rating of APD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.54
EPS Next 2Y2.38%
EPS Next 3Y4.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, APD has a reasonable but not impressive dividend return.
APD's Dividend Yield is a higher than the industry average which is at 3.70.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
On average, the dividend of APD grows each year by 9.29%, which is quite nice.
APD has been paying a dividend for at least 10 years, so it has a reliable track record.
APD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.29%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
APD pays out 102.68% 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.
DP102.68%
EPS Next 2Y2.38%
EPS Next 3Y4.67%
269.67
-6 (-2.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change3.04%
Ins Owners0.04%
Ins Owner Change1.44%
Market Cap60.00B
Analysts75.17
Price Target329.02 (22.01%)
Short Float %1.95%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP102.68%
Div Incr Years6
Div Non Decr Years6
Ex-Date
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)-7.25%
PT rev (3m)-7.32%
EPS NQ rev (1m)-9.52%
EPS NQ rev (3m)-10.44%
EPS NY rev (1m)-4.63%
EPS NY rev (3m)-5.78%
Revenue NQ rev (1m)-2.9%
Revenue NQ rev (3m)-3.06%
Revenue NY rev (1m)-1.29%
Revenue NY rev (3m)-2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.91 | ||
| Fwd PE | 20.7 | ||
| P/S | 4.99 | ||
| P/FCF | N/A | ||
| P/OCF | 17.87 | ||
| P/B | 4.08 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)12.31
EY4.56%
EPS(NY)13.03
Fwd EY4.83%
FCF(TTM)-19.47
FCFYN/A
OCF(TTM)15.09
OCFY5.6%
SpS54.03
BVpS66.09
TBVpS60.84
PEG (NY)N/A
PEG (5Y)2.54
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 | 2.71 |
F-Score4
WACC8.31%
ROIC/WACC0.81
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 Year72.27%
EBIT Next 3Y27.2%
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%