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 has a great profitability rating, there are quite some concerns on its financial health. APD is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years APD has always been profitable.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
APD has a Return On Assets of 3.94%. This is in the better half of the industry: APD outperforms 71.76% of its industry peers.
APD has a better Return On Equity (10.43%) than 72.94% of its industry peers.
The Return On Invested Capital of APD (6.75%) is better than 67.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for APD is in line with the industry average of 6.84%.
| 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
APD has a better Profit Margin (12.76%) 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.
APD's Operating Margin has been stable in the last couple of years.
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.
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 | 23.99% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), APD 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.
APD has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.73 indicates that APD is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.73, APD is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that APD has dependencies on debt financing.
APD has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: APD underperforms 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.73 |
ROIC/WACC0.8
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.00 indicates that APD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, APD is doing worse than 88.24% of the companies in the same industry.
APD has a Quick 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.
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
APD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.32%.
The Earnings Per Share has been growing by 8.62% on average over the past years. This is quite good.
APD shows a decrease in Revenue. In the last year, the revenue decreased by -1.09%.
APD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
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
Based on estimates for the next years, APD will show a small growth in Earnings Per Share. The EPS will grow by 7.56% on average per year.
Based on estimates for the next years, APD will show a small growth in Revenue. The Revenue will grow by 7.62% on average per year.
EPS Next Y-2.74%
EPS Next 2Y2.38%
EPS Next 3Y4.67%
EPS Next 5Y7.56%
Revenue Next Year-1.36%
Revenue Next 2Y1.61%
Revenue Next 3Y3.29%
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
A Price/Earnings ratio of 22.90 indicates a rather expensive valuation of APD.
The rest of the industry has a similar Price/Earnings ratio as APD.
Compared to an average S&P500 Price/Earnings ratio of 26.59, APD is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.64, the valuation of APD can be described as rather expensive.
APD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.39. APD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 21.64 |
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 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.29 |
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)2.66
EPS Next 2Y2.38%
EPS Next 3Y4.67%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.59%.
Compared to an average industry Dividend Yield of 3.74, APD pays a bit more dividend than its industry peers.
APD's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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
APD pays out 102.68% of its income as dividend. 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 2Y2.38%
EPS Next 3Y4.67%
281.88
+1.96 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.78%
Inst Owner Change3.05%
Ins Owners0.04%
Ins Owner Change-1.91%
Market Cap62.73B
Analysts75.17
Price Target328.23 (16.44%)
Short Float %2.14%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)-0.24%
PT rev (3m)-9.42%
EPS NQ rev (1m)-2.31%
EPS NQ rev (3m)-10.3%
EPS NY rev (1m)-4.63%
EPS NY rev (3m)-5.52%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 21.64 | ||
| P/S | 5.22 | ||
| P/FCF | N/A | ||
| P/OCF | 18.68 | ||
| P/B | 4.27 | ||
| P/tB | 4.63 | ||
| EV/EBITDA | 17.29 |
EPS(TTM)12.31
EY4.37%
EPS(NY)13.03
Fwd EY4.62%
FCF(TTM)-19.47
FCFYN/A
OCF(TTM)15.09
OCFY5.35%
SpS54.02
BVpS66.07
TBVpS60.82
PEG (NY)N/A
PEG (5Y)2.66
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 | 2.73 |
F-Score4
WACC8.44%
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)4.32%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-5.61%
EPS Next Y-2.74%
EPS Next 2Y2.38%
EPS Next 3Y4.67%
EPS Next 5Y7.56%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%-0.48%
Revenue Next Year-1.36%
Revenue Next 2Y1.61%
Revenue Next 3Y3.29%
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%