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. APD scores excellent on profitability, but 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.
In the past year APD had a positive cash flow from operations.
APD had positive earnings in each of the past 5 years.
Each year in the past 5 years APD had a positive operating cash flow.
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.
With a decent Return On Equity value of 10.43%, APD is doing good in the industry, outperforming 72.94% of the companies in the same industry.
APD's Return On Invested Capital of 6.75% is fine compared to the rest of the industry. APD outperforms 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 6.83%.
| 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 Profit Margin of 12.76%. This is amongst the best in the industry. APD outperforms 90.59% of its industry peers.
APD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.99%, APD belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
In the last couple of years the Operating Margin of APD has remained more or less at the same level.
APD has a Gross Margin (31.95%) which is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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.
The Altman-Z score of APD (2.84) is better than 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/WACC0.8
WACC8.48%
2.3 Liquidity
A Current Ratio of 1.00 indicates that APD may have some problems paying its short term obligations.
With a Current ratio value of 1.00, APD is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.85, APD is doing worse than 75.29% of the companies in the same industry.
| 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.
Looking at the last year, APD shows a decrease in Revenue. The Revenue has decreased by -1.09% in the last 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.
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-2.51%
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
The Price/Earnings ratio is 24.31, which indicates a rather expensive current valuation of APD.
APD's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.04, APD is valued at the same level.
The Price/Forward Earnings ratio is 22.79, which indicates a rather expensive current valuation of APD.
APD's Price/Forward Earnings ratio is in line with the industry average.
APD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.31 | ||
| Fwd PE | 22.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of APD indicates a slightly more expensive valuation: APD is more expensive than 64.71% of the companies listed in the same industry.
| 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)2.82
EPS Next 2Y2.78%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
APD has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
APD's Dividend Yield is a higher than the industry average which is at 3.57.
Compared to an average S&P500 Dividend Yield of 2.31, APD has a dividend comparable with the average S&P500 company.
| 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.
The dividend of APD decreased 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%
299.24
+2.02 (+0.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner Change-0.62%
Ins Owners0.03%
Ins Owner Change-0.85%
Market Cap66.59B
Analysts75.17
Price Target332.96 (11.27%)
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 | 24.31 | ||
| Fwd PE | 22.79 | ||
| P/S | 5.54 | ||
| P/FCF | N/A | ||
| P/OCF | 19.83 | ||
| P/B | 4.53 | ||
| P/tB | 4.92 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)12.31
EY4.11%
EPS(NY)13.13
Fwd EY4.39%
FCF(TTM)-19.47
FCFYN/A
OCF(TTM)15.09
OCFY5.04%
SpS54.02
BVpS66.07
TBVpS60.82
PEG (NY)N/A
PEG (5Y)2.82
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
WACC8.48%
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-2.51%
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%