AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - NYSE:APD - US0091581068 - Common Stock
290.15 USD
-2.3 (-0.79%)
290.15 USD
0 (0%)
Overall APD gets a fundamental rating of 4 out of 10. We evaluated APD against 83 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.
APD had a positive operating cash flow in the past year.
Each year in the past 5 years APD has been profitable.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of APD (3.72%) is better than 72.29% of its industry peers.
Looking at the Return On Equity, with a value of 9.98%, APD is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.24%, APD is doing good in the industry, outperforming 68.67% 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 6.34%.
| 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
APD has a Profit Margin of 12.86%. This is amongst the best in the industry. APD outperforms 90.36% of its industry peers.
In the last couple of years the Profit Margin of APD has grown nicely.
APD has a Operating Margin of 24.01%. This is amongst the best in the industry. APD outperforms 92.77% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
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.
Compared to 1 year ago, APD has about the same amount of shares outstanding.
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
APD has an Altman-Z score of 2.66. 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 has a better Altman-Z score (2.66) than 74.70% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that APD has dependencies on debt financing.
APD has a Debt to Equity ratio of 1.09. This is in the lower half of the industry: APD underperforms 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC0.74
WACC8.39%
2.3 Liquidity
APD has a Current Ratio of 1.29. This is a normal value and indicates that APD is financially healthy and should not expect problems in meeting its short term obligations.
APD's Current ratio of 1.29 is on the low side compared to the rest of the industry. APD is outperformed by 85.54% of its industry peers.
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.
APD has a Quick ratio of 1.12. This is comparable to the rest of the industry: APD outperforms 42.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
APD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.50%.
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.
The Revenue has been growing slightly by 6.29% on average over the past years.
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
APD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.37% yearly.
The Revenue is expected to grow by 5.98% on average over the next years.
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
With a Price/Earnings ratio of 23.78, APD is valued on the expensive side.
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 (27.38), we can say APD is valued inline with the index average.
A Price/Forward Earnings ratio of 22.22 indicates a rather expensive valuation of APD.
The rest of the industry has a similar Price/Forward Earnings ratio as APD.
The average S&P500 Price/Forward Earnings ratio is at 22.86. APD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APD indicates a slightly more expensive valuation: APD is more expensive than 61.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.05 |
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)2.76
EPS Next 2Y2.49%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, APD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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.
The dividend of APD decreased recently.
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 APD. This is not a sustainable payout ratio.
APD'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%
290.15
-2.3 (-0.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.13%
Inst Owner Change0.8%
Ins Owners0.03%
Ins Owner Change0.91%
Market Cap64.57B
Analysts74.48
Price Target332.45 (14.58%)
Short Float %2.32%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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)0.08%
PT rev (3m)1.28%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-2.59%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.78 | ||
| Fwd PE | 22.22 | ||
| P/S | 5.36 | ||
| P/FCF | N/A | ||
| P/OCF | 21.87 | ||
| P/B | 4.16 | ||
| P/tB | 4.53 | ||
| EV/EBITDA | 18.05 |
EPS(TTM)12.2
EY4.2%
EPS(NY)13.06
Fwd EY4.5%
FCF(TTM)-20.79
FCFYN/A
OCF(TTM)13.27
OCFY4.57%
SpS54.18
BVpS69.82
TBVpS64.1
PEG (NY)N/A
PEG (5Y)2.76
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 | 2.66 |
F-Score5
WACC8.39%
ROIC/WACC0.74
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%