AIR PRODUCTS & CHEMICALS INC (APD)
US0091581068 - Common Stock
Overall APD gets a fundamental rating of 5 out of 10. We evaluated APD against 85 industry peers in the Chemicals industry. While APD has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, APD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year APD was profitable.
APD had a positive operating cash flow in the past year.
In the past 5 years APD has always been profitable.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of APD (6.85%) is better than 80.00% of its industry peers.
APD has a better Return On Equity (15.72%) than 74.12% of its industry peers.
APD's Return On Invested Capital of 7.22% is fine compared to the rest of the industry. APD outperforms 67.06% 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 7.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 15.72% | ||
| ROIC | 7.22% |
ROA(3y)7.77%
ROA(5y)8.02%
ROE(3y)16.25%
ROE(5y)16.06%
ROIC(3y)7.93%
ROIC(5y)8.39%
1.3 Margins
The Profit Margin of APD (18.81%) is better than 91.76% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
APD's Operating Margin of 22.17% is amongst the best of the industry. APD outperforms 89.41% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
The Gross Margin of APD (30.55%) is better than 63.53% of its industry peers.
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 | 22.17% | ||
| PM (TTM) | 18.81% | ||
| GM | 30.55% |
OM growth 3Y-4.4%
OM growth 5Y-0.26%
PM growth 3Y-5.03%
PM growth 5Y1.7%
GM growth 3Y-4.06%
GM growth 5Y-0.53%
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.
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.
Compared to 1 year ago, APD has a worse debt to assets ratio.
2.2 Solvency
APD has an Altman-Z score of 3.06. This indicates that APD is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of APD (3.06) is better than 81.18% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that APD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, APD is in line with its industry, outperforming 42.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.06 |
ROIC/WACC0.9
WACC8.07%
2.3 Liquidity
APD has a Current Ratio of 1.81. 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 Current ratio value of 1.81, APD is not doing good in the industry: 61.18% of the companies in the same industry are doing better.
APD has a Quick Ratio of 1.58. 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 1.58 is fine compared to the rest of the industry. APD outperforms 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
APD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.02%, which is quite good.
Measured over the past years, APD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.27% on average per year.
Looking at the last year, APD shows a decrease in Revenue. The Revenue has decreased by -3.54% in the last year.
The Revenue has been growing slightly by 7.13% on average over the past years.
EPS 1Y (TTM)11.02%
EPS 3Y10.42%
EPS 5Y9.27%
EPS growth Q2Q6.82%
Revenue 1Y (TTM)-3.54%
Revenue growth 3Y12.47%
Revenue growth 5Y7.13%
Revenue growth Q2Q-5.58%
3.2 Future
APD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.19% yearly.
The Revenue is expected to grow by 10.88% on average over the next years. This is quite good.
EPS Next Y8.2%
EPS Next 2Y8.57%
EPS Next 3Y9.01%
EPS Next 5Y12.19%
Revenue Next Year-1.15%
Revenue Next 2Y2.97%
Revenue Next 3Y5.06%
Revenue Next 5Y10.88%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.11 indicates a rather expensive valuation of APD.
APD's Price/Earnings is on the same level as the industry average.
APD is valuated rather cheaply when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.33, the valuation of APD can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as APD.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, APD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as APD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates APD does not grow enough to justify the current Price/Earnings ratio.
APD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)2.17
EPS Next 2Y8.57%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 3.04%.
APD's Dividend Yield is a higher than the industry average which is at 3.34.
Compared to an average S&P500 Dividend Yield of 2.45, APD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of APD is nicely growing with an annual growth rate of 10.46%!
APD has paid a dividend for at least 10 years, which is a reliable track record.
APD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.46%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
APD pays out 65.29% of its income as dividend. This is not a sustainable payout ratio.
The dividend of APD is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP65.29%
EPS Next 2Y8.57%
EPS Next 3Y9.01%
AIR PRODUCTS & CHEMICALS INC
NYSE:APD (4/25/2024, 2:42:03 PM)
After market: 235.08 0 (0%)235.08
+0.4 (+0.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.45
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.85% | ||
| ROE | 15.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.17% | ||
| PM (TTM) | 18.81% | ||
| GM | 30.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)11.02%
EPS 3Y10.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.54%
Revenue growth 3Y12.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y