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AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis

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

269.45  +2.34 (+0.88%)

After market: 267.11 -2.34 (-0.87%)

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 has an excellent profitability rating, but there are concerns on its financial health. APD is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
APD had a positive operating cash flow in each of the past 5 years.
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 has a better Return On Assets (9.59%) than 94.12% of its industry peers.
With an excellent Return On Equity value of 22.98%, APD belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.74%, APD is doing good in the industry, outperforming 68.24% of the companies in the same industry.
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 7.13%.
Industry RankSector Rank
ROA 9.59%
ROE 22.98%
ROIC 6.74%
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 better Profit Margin (31.88%) than 100.00% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
APD has a better Operating Margin (24.48%) than 92.94% of its industry peers.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
With a decent Gross Margin value of 32.55%, APD is doing good in the industry, outperforming 62.35% of the companies in the same industry.
In the last couple of years the Gross Margin of APD has remained more or less at the same level.
Industry RankSector Rank
OM 24.48%
PM (TTM) 31.88%
GM 32.55%
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

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2

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.
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.
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

An Altman-Z score of 2.79 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.79, APD belongs to the best of the industry, outperforming 81.18% of the companies in the same industry.
APD has a Debt/Equity ratio of 0.80. This is a neutral value indicating APD is somewhat dependend on debt financing.
APD has a Debt to Equity ratio of 0.80. This is in the lower half of the industry: APD underperforms 61.18% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF N/A
Altman-Z 2.79
ROIC/WACC0.85
WACC7.96%
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 1.11 indicates that APD should not have too much problems paying its short term obligations.
APD's Current ratio of 1.11 is on the low side compared to the rest of the industry. APD is outperformed by 82.35% of its industry peers.
A Quick Ratio of 0.96 indicates that APD may have some problems paying its short term obligations.
APD has a Quick ratio (0.96) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 0.96
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

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4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.67% over the past year.
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 -3.12% 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)6.67%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%1.42%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-2.2%

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 7.92% on average per year.
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 Y1.97%
EPS Next 2Y5.75%
EPS Next 3Y7.72%
EPS Next 5Y7.92%
Revenue Next Year-0.46%
Revenue Next 2Y2.92%
Revenue Next 3Y4.8%
Revenue Next 5Y6.76%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.
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

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.61, the valuation of APD can be described as rather expensive.
APD's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.87. APD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 19.38 indicates a rather expensive valuation of APD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of APD is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, APD is valued at the same level.
Industry RankSector Rank
PE 21.61
Fwd PE 19.38
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 65.88% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.37
APD Per share dataAPD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
APD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)10.94
PEG (5Y)2.51
EPS Next 2Y5.75%
EPS Next 3Y7.72%

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5

5. Dividend

5.1 Amount

APD has a Yearly Dividend Yield of 2.66%. 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 3.80.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.46.
Industry RankSector Rank
Dividend Yield 2.66%

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
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

APD pays out 40.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of APD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.91%
EPS Next 2Y5.75%
EPS Next 3Y7.72%
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

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AIR PRODUCTS & CHEMICALS INC

NYSE:APD (4/28/2025, 8:04:00 PM)

After market: 267.11 -2.34 (-0.87%)

269.45

+2.34 (+0.88%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)02-06 2025-02-06/bmo
Earnings (Next)05-01 2025-05-01/bmo
Inst Owners90.78%
Inst Owner Change0.59%
Ins Owners0.04%
Ins Owner Change1.44%
Market Cap59.95B
Analysts75.86
Price Target339.03 (25.82%)
Short Float %1.97%
Short Ratio3.5
Dividend
Industry RankSector Rank
Dividend Yield 2.66%
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP40.91%
Div Incr Years6
Div Non Decr Years6
Ex-Date04-01 2025-04-01 (1.79)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.34%
Min EPS beat(2)-0.56%
Max EPS beat(2)1.25%
EPS beat(4)3
Avg EPS beat(4)2.46%
Min EPS beat(4)-0.56%
Max EPS beat(4)4.72%
EPS beat(8)6
Avg EPS beat(8)0.84%
EPS beat(12)8
Avg EPS beat(12)0.56%
EPS beat(16)8
Avg EPS beat(16)-0.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.8%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.61%
Min Revenue beat(4)-4.8%
Max Revenue beat(4)-1.23%
Revenue beat(8)1
Avg Revenue beat(8)-3.53%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)7
Avg Revenue beat(16)0.08%
PT rev (1m)-6.43%
PT rev (3m)-4.32%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-7.27%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-2.27%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.49%
Valuation
Industry RankSector Rank
PE 21.61
Fwd PE 19.38
P/S 4.98
P/FCF N/A
P/OCF 15.64
P/B 3.59
P/tB 3.86
EV/EBITDA 16.37
EPS(TTM)12.47
EY4.63%
EPS(NY)13.9
Fwd EY5.16%
FCF(TTM)-16.35
FCFYN/A
OCF(TTM)17.22
OCFY6.39%
SpS54.09
BVpS75.03
TBVpS69.84
PEG (NY)10.94
PEG (5Y)2.51
Profitability
Industry RankSector Rank
ROA 9.59%
ROE 22.98%
ROCE 8.37%
ROIC 6.74%
ROICexc 7.13%
ROICexgc 7.39%
OM 24.48%
PM (TTM) 31.88%
GM 32.55%
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 Turnover0.3
Health
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF N/A
Debt/EBITDA 3.02
Cap/Depr 508.53%
Cap/Sales 62.06%
Interest Coverage 250
Cash Conversion 86.79%
Profit Quality N/A
Current Ratio 1.11
Quick Ratio 0.96
Altman-Z 2.79
F-Score5
WACC7.96%
ROIC/WACC0.85
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)6.67%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%1.42%
EPS Next Y1.97%
EPS Next 2Y5.75%
EPS Next 3Y7.72%
EPS Next 5Y7.92%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-2.2%
Revenue Next Year-0.46%
Revenue Next 2Y2.92%
Revenue Next 3Y4.8%
Revenue Next 5Y6.76%
EBIT growth 1Y6.98%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year72.27%
EBIT Next 3Y27.2%
EBIT Next 5Y20.12%
FCF growth 1Y-5496.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.09%
OCF growth 3Y2.95%
OCF growth 5Y4.19%