AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:APD - US0091581068 - Common Stock
256.77 USD
-4.09 (-1.57%)
256.318 USD
-0.45 (-0.18%)
APD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 81 industry peers in the Chemicals industry. APD has a medium profitability rating, but doesn't score so well on its financial health evaluation. APD has a expensive valuation and it also scores bad on growth.
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 4 of the past 5 years.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.96%, APD perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of -2.63%, APD is in line with its industry, outperforming 45.68% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.23%, APD is in the better half of the industry, outperforming 69.14% 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 6.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.96% | ||
| ROE | -2.63% | ||
| ROIC | 6.23% |
ROA(3y)5.3%
ROA(5y)6.4%
ROE(3y)11.97%
ROE(5y)13.72%
ROIC(3y)6.89%
ROIC(5y)7.28%
1.3 Margins
Looking at the Operating Margin, with a value of 23.74%, APD belongs to the top of the industry, outperforming 91.36% of the companies in the same industry.
APD's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 31.41%, APD perfoms like the industry average, outperforming 59.26% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.74% | ||
| PM (TTM) | N/A | ||
| GM | 31.41% |
OM growth 3Y7.7%
OM growth 5Y-0.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.89%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APD is destroying value.
The number of shares outstanding for APD remains at a similar level compared to 1 year ago.
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
A Debt/Equity ratio of 1.13 is on the high side and indicates that APD has dependencies on debt financing.
APD has a worse Debt to Equity ratio (1.13) than 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.74
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.38 indicates that APD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.38, APD is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
APD has a Quick Ratio of 1.20. This is a normal value and indicates that APD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.20, APD perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
APD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.22%.
APD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.07% yearly.
The Revenue has decreased by -0.52% in the past year.
APD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.33% yearly.
EPS 1Y (TTM)-3.22%
EPS 3Y4.94%
EPS 5Y7.07%
EPS Q2Q%-4.78%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y-1.77%
Revenue growth 5Y6.33%
Sales Q2Q%-0.65%
3.2 Future
The Earnings Per Share is expected to grow by 7.69% on average over the next years.
APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.92% yearly.
EPS Next Y8.12%
EPS Next 2Y8.59%
EPS Next 3Y9.23%
EPS Next 5Y7.69%
Revenue Next Year4.58%
Revenue Next 2Y5.11%
Revenue Next 3Y5.94%
Revenue Next 5Y6.92%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.34, the valuation of APD can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as APD.
When comparing the Price/Earnings ratio of APD to the average of the S&P500 Index (26.15), we can say APD is valued inline with the index average.
The Price/Forward Earnings ratio is 19.74, which indicates a rather expensive current 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 (36.22), we can say APD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 19.74 |
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 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.63
PEG (5Y)3.02
EPS Next 2Y8.59%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.76%.
APD's Dividend Yield is a higher than the industry average which is at 3.88.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 7.31%!
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)7.31%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
The earnings of APD are negative and hence is the payout ratio. APD will probably not be able to sustain this dividend level.
APD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP-401.55%
EPS Next 2Y8.59%
EPS Next 3Y9.23%
256.77
-4.09 (-1.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.38%
Inst Owner Change-1.26%
Ins Owners0.03%
Ins Owner Change0.88%
Market Cap57.15B
Revenue(TTM)12.04B
Net Income(TTM)-394.50M
Analysts75.86
Price Target316.88 (23.41%)
Short Float %2.41%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend7.12
Dividend Growth(5Y)7.31%
DP-401.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.68%
Min EPS beat(2)-0.83%
Max EPS beat(2)2.18%
EPS beat(4)1
Avg EPS beat(4)-1.26%
Min EPS beat(4)-5.81%
Max EPS beat(4)2.18%
EPS beat(8)4
Avg EPS beat(8)-0.21%
EPS beat(12)7
Avg EPS beat(12)-0.09%
EPS beat(16)9
Avg EPS beat(16)0.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-1.31%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.42%
Revenue beat(12)2
Avg Revenue beat(12)-2.88%
Revenue beat(16)5
Avg Revenue beat(16)-0.92%
PT rev (1m)-4.68%
PT rev (3m)-5.07%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.34 | ||
| Fwd PE | 19.74 | ||
| P/S | 4.75 | ||
| P/FCF | N/A | ||
| P/OCF | 17.55 | ||
| P/B | 3.8 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 16.5 |
EPS(TTM)12.03
EY4.69%
EPS(NY)13.01
Fwd EY5.07%
FCF(TTM)-16.92
FCFYN/A
OCF(TTM)14.63
OCFY5.7%
SpS54.08
BVpS67.5
TBVpS61.85
PEG (NY)2.63
PEG (5Y)3.02
Graham Number135.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.96% | ||
| ROE | -2.63% | ||
| ROCE | 7.76% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.56% | ||
| ROICexgc | 6.81% | ||
| OM | 23.74% | ||
| PM (TTM) | N/A | ||
| GM | 31.41% | ||
| FCFM | N/A |
ROA(3y)5.3%
ROA(5y)6.4%
ROE(3y)11.97%
ROE(5y)13.72%
ROIC(3y)6.89%
ROIC(5y)7.28%
ROICexc(3y)7.39%
ROICexc(5y)8.33%
ROICexgc(3y)7.7%
ROICexgc(5y)8.79%
ROCE(3y)8.6%
ROCE(5y)9.08%
ROICexgc growth 3Y-12.25%
ROICexgc growth 5Y-10.36%
ROICexc growth 3Y-11.59%
ROICexc growth 5Y-9.49%
OM growth 3Y7.7%
OM growth 5Y-0.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.89%
GM growth 5Y-1.48%
F-Score2
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 448.96% | ||
| Cap/Sales | 58.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score2
WACC8.47%
ROIC/WACC0.74
Cap/Depr(3y)419.31%
Cap/Depr(5y)332.63%
Cap/Sales(3y)50.41%
Cap/Sales(5y)39.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.22%
EPS 3Y4.94%
EPS 5Y7.07%
EPS Q2Q%-4.78%
EPS Next Y8.12%
EPS Next 2Y8.59%
EPS Next 3Y9.23%
EPS Next 5Y7.69%
Revenue 1Y (TTM)-0.52%
Revenue growth 3Y-1.77%
Revenue growth 5Y6.33%
Sales Q2Q%-0.65%
Revenue Next Year4.58%
Revenue Next 2Y5.11%
Revenue Next 3Y5.94%
Revenue Next 5Y6.92%
EBIT growth 1Y-2.79%
EBIT growth 3Y5.8%
EBIT growth 5Y5.33%
EBIT Next Year87.67%
EBIT Next 3Y29.71%
EBIT Next 5Y19.32%
FCF growth 1Y-19.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10.69%
OCF growth 3Y0.27%
OCF growth 5Y-0.05%
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 3 / 10 to APD.
Can you provide the valuation status for AIR PRODUCTS & CHEMICALS INC?
ChartMill assigns a valuation rating of 1 / 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 5 / 10.
Can you provide the financial health for APD stock?
The financial health rating of AIR PRODUCTS & CHEMICALS INC (APD) is 1 / 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 -401.55%.