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AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis

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

299.24  +2.02 (+0.68%)

After market: 299.24 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. APD scores excellent on profitability, but 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.
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.
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.
With a decent Return On Equity value of 10.43%, APD is doing good in the industry, outperforming 72.94% of the companies in the same industry.
APD's Return On Invested Capital of 6.75% is fine compared to the rest of the industry. APD outperforms 67.06% 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 6.83%.
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

APD has a Profit Margin of 12.76%. This is amongst the best in the industry. APD outperforms 90.59% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.99%, APD belongs to the best of the industry, outperforming 91.76% 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 (31.95%) which is comparable to the rest of the 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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so APD is destroying value.
APD has about the same amout of shares outstanding than it did 1 year ago.
APD has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of APD (2.84) is better than 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/WACC0.8
WACC8.48%
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

A Current Ratio of 1.00 indicates that APD may have some problems paying its short term obligations.
With a Current ratio value of 1.00, APD is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.85, APD is doing worse than 75.29% of the companies in the same industry.
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

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.
Looking at the last year, APD shows a decrease in Revenue. The Revenue has decreased by -1.09% in the last 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.
Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
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

The Price/Earnings ratio is 24.31, which indicates a rather expensive current valuation of APD.
APD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.04, APD is valued at the same level.
The Price/Forward Earnings ratio is 22.79, 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 valuation a bit cheaper than the S&P500 average which is at 37.64.
Industry RankSector Rank
PE 24.31
Fwd PE 22.79
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

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 64.71% of the companies listed in the same industry.
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)2.82
EPS Next 2Y2.78%
EPS Next 3Y4.7%

4

5. Dividend

5.1 Amount

APD has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
APD's Dividend Yield is a higher than the industry average which is at 3.57.
Compared to an average S&P500 Dividend Yield of 2.31, APD has a dividend comparable with the average S&P500 company.
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.
The dividend of APD decreased 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 (7/25/2025, 8:04:00 PM)

After market: 299.24 0 (0%)

299.24

+2.02 (+0.68%)

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-0.62%
Ins Owners0.03%
Ins Owner Change-0.85%
Market Cap66.59B
Analysts75.17
Price Target332.96 (11.27%)
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 24.31
Fwd PE 22.79
P/S 5.54
P/FCF N/A
P/OCF 19.83
P/B 4.53
P/tB 4.92
EV/EBITDA 18.28
EPS(TTM)12.31
EY4.11%
EPS(NY)13.13
Fwd EY4.39%
FCF(TTM)-19.47
FCFYN/A
OCF(TTM)15.09
OCFY5.04%
SpS54.02
BVpS66.07
TBVpS60.82
PEG (NY)N/A
PEG (5Y)2.82
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
WACC8.48%
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)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%