AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - NYSE:APD - US0091581068 - Common Stock
238 USD
-2.77 (-1.15%)
Overall APD gets a fundamental rating of 4 out of 10. We evaluated APD against 82 industry peers in the Chemicals industry. APD scores excellent on profitability, but 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
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.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
APD's Return On Assets of 3.72% is fine compared to the rest of the industry. APD outperforms 71.95% of its industry peers.
APD has a Return On Equity of 9.98%. This is in the better half of the industry: APD outperforms 79.27% of its industry peers.
The Return On Invested Capital of APD (6.24%) is better than 68.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for APD is in line with the industry average of 6.23%.
| 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
With an excellent Profit Margin value of 12.86%, APD belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
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 92.68% 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 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
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.
Compared to 1 year ago, APD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.39 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of APD (2.39) is better than 68.29% 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's Debt to Equity ratio of 1.09 is on the low side compared to the rest of the industry. APD is outperformed by 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.39 |
ROIC/WACC0.8
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.29 indicates that APD should not have too much problems paying its short term obligations.
APD has a Current ratio of 1.29. This is amonst the worse of the industry: APD underperforms 85.37% 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 (1.12) which is comparable to the rest of the industry.
| 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%.
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.
The Revenue has decreased by -0.38% in the past 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
Based on estimates for the next years, APD will show a small growth in Earnings Per Share. The EPS will grow by 6.37% on average per year.
The Revenue is expected to grow by 5.98% on average over the next years.
EPS Next Y-2.39%
EPS Next 2Y2.38%
EPS Next 3Y4.5%
EPS Next 5Y6.37%
Revenue Next Year-1%
Revenue Next 2Y1.75%
Revenue Next 3Y3.03%
Revenue Next 5Y5.98%
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 decreasing.
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 19.51, the valuation of APD can be described as rather expensive.
APD's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of APD to the average of the S&P500 Index (26.03), we can say APD is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.27 indicates a rather expensive valuation of APD.
APD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of APD to the average of the S&P500 Index (22.27), we can say APD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 18.27 |
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 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.45 |
4.3 Compensation for Growth
The decent profitability rating of APD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.26
EPS Next 2Y2.38%
EPS Next 3Y4.5%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.93%.
Compared to an average industry Dividend Yield of 4.00, APD pays a bit more dividend than its industry peers.
APD's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
On average, the dividend of APD grows each year by 9.29%, which is quite nice.
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
5.3 Sustainability
APD pays out 101.85% of its income as dividend. 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 2Y2.38%
EPS Next 3Y4.5%
NYSE:APD (11/5/2025, 12:04:10 PM)
238
-2.77 (-1.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.38%
Inst Owner Change-1.78%
Ins Owners0.03%
Ins Owner Change0.88%
Market Cap52.97B
Revenue(TTM)12.06B
Net Income(TTM)1.55B
Analysts75.86
Price Target330.22 (38.75%)
Short Float %2.31%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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)-0.67%
PT rev (3m)-0.82%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.51 | ||
| Fwd PE | 18.27 | ||
| P/S | 4.39 | ||
| P/FCF | N/A | ||
| P/OCF | 17.94 | ||
| P/B | 3.41 | ||
| P/tB | 3.71 | ||
| EV/EBITDA | 15.45 |
EPS(TTM)12.2
EY5.13%
EPS(NY)13.03
Fwd EY5.47%
FCF(TTM)-20.79
FCFYN/A
OCF(TTM)13.27
OCFY5.57%
SpS54.18
BVpS69.82
TBVpS64.1
PEG (NY)N/A
PEG (5Y)2.26
Graham Number138.44
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%
ROICexgc growth 3Y-11.13%
ROICexgc 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 | 2.39 |
F-Score5
WACC7.82%
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)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
EPS Next Y-2.39%
EPS Next 2Y2.38%
EPS Next 3Y4.5%
EPS Next 5Y6.37%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%
Revenue Next Year-1%
Revenue Next 2Y1.75%
Revenue Next 3Y3.03%
Revenue Next 5Y5.98%
EBIT growth 1Y2.3%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year69.58%
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%
AIR PRODUCTS & CHEMICALS INC / APD FAQ
What is the ChartMill fundamental rating of AIR PRODUCTS & CHEMICALS INC (APD) stock?
ChartMill assigns a fundamental rating of 4 / 10 to APD.
Can you provide the valuation status for AIR PRODUCTS & CHEMICALS INC?
ChartMill assigns a valuation rating of 2 / 10 to AIR PRODUCTS & CHEMICALS INC (APD). This can be considered as Overvalued.
What is the profitability of APD stock?
AIR PRODUCTS & CHEMICALS INC (APD) has a profitability rating of 7 / 10.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 2 / 10.
Is the dividend of AIR PRODUCTS & CHEMICALS INC sustainable?
The dividend rating of AIR PRODUCTS & CHEMICALS INC (APD) is 4 / 10 and the dividend payout ratio is 101.85%.