AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
NYSE:APD - New York Stock Exchange, Inc. - US0091581068 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to APD. APD was compared to 85 industry peers in the Chemicals industry. While APD belongs to the best of the industry regarding profitability, there are concerns on its financial health. APD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
APD had positive earnings in the past year.
APD had a positive operating cash flow in the past year.
Each year in the past 5 years APD has been profitable.
APD had a positive operating cash flow in each of the past 5 years.
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.
Looking at the Return On Equity, with a value of 10.43%, APD is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.75%, APD is doing good in the industry, outperforming 67.06% 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 6.81%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of APD (12.76%) is better than 90.59% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
APD has a better Operating Margin (23.99%) than 91.76% of its industry peers.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
Looking at the Gross Margin, with a value of 31.95%, APD is in line with its industry, outperforming 58.82% of the companies in the same industry.
APD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for APD remains at a similar level compared to 1 year ago.
Compared to 5 years ago, APD has more shares outstanding
The debt/assets ratio for APD is higher compared to a year ago.
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.
APD's Altman-Z score of 2.84 is fine compared to the rest of the industry. APD outperforms 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.84 |
ROIC/WACC0.79
WACC8.57%
2.3 Liquidity
APD has a Current 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.
APD has a worse Current ratio (1.00) than 88.24% of its industry peers.
A Quick Ratio of 0.85 indicates that APD may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, APD is not doing good in the industry: 75.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.32% over the past year.
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 -1.09% in the past 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.
APD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.62% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.01, the valuation of APD can be described as rather expensive.
APD's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of APD to the average of the S&P500 Index (27.93), we can say APD is valued inline with the index average.
APD is valuated rather expensively with a Price/Forward Earnings ratio of 22.51.
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 37.78, APD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, APD is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.28 |
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)2.78
EPS Next 2Y2.78%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, APD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.55, APD pays a bit more dividend than its industry peers.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector 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.
APD has decreased its dividend recently.
Dividend Growth(5Y)9.29%
Div Incr Years1
Div Non Decr Years1
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%
295.56
-3.68 (-1.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner Change-0.6%
Ins Owners0.03%
Ins Owner Change-0.85%
Market Cap65.77B
Analysts75.17
Price Target332.96 (12.65%)
Short Float %2.64%
Short Ratio4.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP102.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 22.51 | ||
| P/S | 5.47 | ||
| P/FCF | N/A | ||
| P/OCF | 19.59 | ||
| P/B | 4.47 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)12.31
EY4.16%
EPS(NY)13.13
Fwd EY4.44%
FCF(TTM)-19.47
FCFYN/A
OCF(TTM)15.09
OCFY5.11%
SpS54.02
BVpS66.07
TBVpS60.82
PEG (NY)N/A
PEG (5Y)2.78
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.57%
ROIC/WACC0.79
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%