AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
NYSE:APD - US0091581068 - Common Stock
294.11 USD
-0.91 (-0.31%)
292.934 USD
-1.18 (-0.4%)
APD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. APD scores excellent on profitability, but 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
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.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
APD has a better Return On Assets (3.72%) than 72.62% of its industry peers.
APD's Return On Equity of 9.98% is fine compared to the rest of the industry. APD outperforms 78.57% of its industry peers.
APD has a Return On Invested Capital of 6.24%. This is in the better half of the industry: APD outperforms 69.05% 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 6.43%.
| 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
The Profit Margin of APD (12.86%) is better than 90.48% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
APD's Operating Margin of 24.01% is amongst the best of the industry. APD outperforms 92.86% of its industry peers.
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 comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APD is destroying value.
Compared to 1 year ago, APD has about the same amount of shares outstanding.
APD has more shares outstanding than it did 5 years ago.
APD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.67 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
APD has a Altman-Z score of 2.67. This is in the better half of the industry: APD outperforms 76.19% of its industry peers.
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 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.67 |
ROIC/WACC0.75
WACC8.26%
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.
Looking at the Current ratio, with a value of 1.29, APD is doing worse than 84.52% of the companies in the same industry.
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's Quick ratio of 1.12 is in line compared to the rest of the industry. APD outperforms 41.67% of its industry peers.
| 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.
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.
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 7.82% yearly.
The Revenue is expected to grow by 6.94% on average over the next years.
EPS Next Y-2.39%
EPS Next 2Y2.49%
EPS Next 3Y4.56%
EPS Next 5Y7.82%
Revenue Next Year-0.99%
Revenue Next 2Y1.76%
Revenue Next 3Y3.06%
Revenue Next 5Y6.94%
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 24.11, the valuation of APD can be described as rather expensive.
APD's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.08, APD is valued at the same level.
With a Price/Forward Earnings ratio of 22.53, 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 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 22.53 |
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 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.18 |
4.3 Compensation for Growth
The decent profitability rating of APD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.8
EPS Next 2Y2.49%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.43%.
APD's Dividend Yield is a higher than the industry average which is at 3.54.
Compared to an average S&P500 Dividend Yield of 2.34, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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 2Y2.49%
EPS Next 3Y4.56%
294.11
-0.91 (-0.31%)
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 Change0.85%
Market Cap65.45B
Analysts75.17
Price Target333.79 (13.49%)
Short Float %2.29%
Short Ratio4.73
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)0.25%
PT rev (3m)1.45%
EPS NQ rev (1m)-2.68%
EPS NQ rev (3m)-8.09%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.36%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 22.53 | ||
| P/S | 5.43 | ||
| P/FCF | N/A | ||
| P/OCF | 22.17 | ||
| P/B | 4.21 | ||
| P/tB | 4.59 | ||
| EV/EBITDA | 18.18 |
EPS(TTM)12.2
EY4.15%
EPS(NY)13.06
Fwd EY4.44%
FCF(TTM)-20.79
FCFYN/A
OCF(TTM)13.27
OCFY4.51%
SpS54.18
BVpS69.82
TBVpS64.1
PEG (NY)N/A
PEG (5Y)2.8
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 | 2.67 |
F-Score5
WACC8.26%
ROIC/WACC0.75
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 5Y7.82%
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 5Y6.94%
EBIT growth 1Y2.3%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year69.55%
EBIT Next 3Y25.04%
EBIT Next 5Y20.05%
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%