AIR PRODUCTS & CHEMICALS INC (APD) Stock Fundamental Analysis
USA - NYSE:APD - US0091581068 - Common Stock
257.08 USD
-5.63 (-2.14%)
257.08 USD
0 (0%)
Taking everything into account, APD scores 4 out of 10 in our fundamental rating. APD was compared to 83 industry peers in the Chemicals industry. APD scores excellent on profitability, but there are concerns on its financial health. APD does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year APD was profitable.
In the past year APD had a positive cash flow from operations.
Each year in the past 5 years APD has been profitable.
Each year in the past 5 years APD had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.72%, APD is doing good in the industry, outperforming 72.29% of the companies in the same industry.
With a decent Return On Equity value of 9.98%, APD is doing good in the industry, outperforming 78.31% of the companies in the same industry.
With a decent Return On Invested Capital value of 6.24%, APD is doing good in the industry, outperforming 68.67% of the companies in the same industry.
APD had an Average Return On Invested Capital over the past 3 years of 7.56%. This is in line with the industry average of 6.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 9.98% | ||
| ROIC | 6.24% |
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
Looking at the Profit Margin, with a value of 12.86%, APD belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
In the last couple of years the Profit Margin of APD has grown nicely.
The Operating Margin of APD (24.01%) is better than 92.77% of its industry peers.
APD's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 31.87%, APD is doing good in the industry, outperforming 60.24% 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 | 24.01% | ||
| PM (TTM) | 12.86% | ||
| GM | 31.87% |
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.
APD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, APD has more shares outstanding
APD has a worse debt/assets ratio than last year.
2.2 Solvency
APD has an Altman-Z score of 2.50. 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 has a better Altman-Z score (2.50) than 74.70% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that APD has dependencies on debt financing.
APD has a worse Debt to Equity ratio (1.09) than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.5 |
ROIC/WACC0.77
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.29 indicates that APD should not have too much problems paying its short term obligations.
APD has a Current ratio of 1.29. This is amonst the worse of the industry: APD underperforms 85.54% of its industry peers.
A Quick Ratio of 1.12 indicates that APD should not have too much problems paying its short term obligations.
APD has a Quick ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.50% 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 -0.38% in the past year.
APD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.29% yearly.
EPS 1Y (TTM)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%
3.2 Future
The Earnings Per Share is expected to grow by 6.37% 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 5.98% yearly.
EPS Next Y-2.39%
EPS Next 2Y2.5%
EPS Next 3Y4.56%
EPS Next 5Y6.37%
Revenue Next Year-0.98%
Revenue Next 2Y1.77%
Revenue Next 3Y3.07%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 21.07, which indicates a rather expensive current valuation of APD.
APD's Price/Earnings ratio is in line with the industry average.
APD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.68, which indicates a rather expensive current valuation of APD.
The rest of the industry has a similar Price/Forward Earnings ratio as APD.
APD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
65.06% of the companies in the same industry are cheaper than APD, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.56 |
4.3 Compensation for Growth
The decent profitability rating of APD may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.44
EPS Next 2Y2.5%
EPS Next 3Y4.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.65%, APD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.61, APD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, APD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
On average, the dividend of APD grows each year by 9.29%, which is quite nice.
APD has been paying a dividend for at least 10 years, so it has 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
101.85% of the earnings are spent on dividend by APD. This is not a sustainable payout ratio.
APD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP101.85%
EPS Next 2Y2.5%
EPS Next 3Y4.56%
257.08
-5.63 (-2.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners94.38%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change0.91%
Market Cap57.21B
Analysts75.86
Price Target332.45 (29.32%)
Short Float %2.41%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend7.04
Dividend Growth(5Y)9.29%
DP101.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.82%
Min EPS beat(2)-5.81%
Max EPS beat(2)2.18%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-5.81%
Max EPS beat(4)2.18%
EPS beat(8)5
Avg EPS beat(8)-0.1%
EPS beat(12)8
Avg EPS beat(12)0.28%
EPS beat(16)9
Avg EPS beat(16)0.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.35%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)0.62%
Revenue beat(4)1
Avg Revenue beat(4)-0.93%
Min Revenue beat(4)-1.8%
Max Revenue beat(4)0.62%
Revenue beat(8)1
Avg Revenue beat(8)-2.97%
Revenue beat(12)3
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)-0.4%
PT rev (3m)0.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)0%
EPS NY rev (3m)0.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.07 | ||
| Fwd PE | 19.68 | ||
| P/S | 4.74 | ||
| P/FCF | N/A | ||
| P/OCF | 19.38 | ||
| P/B | 3.68 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 16.56 |
EPS(TTM)12.2
EY4.75%
EPS(NY)13.06
Fwd EY5.08%
FCF(TTM)-20.79
FCFYN/A
OCF(TTM)13.27
OCFY5.16%
SpS54.18
BVpS69.82
TBVpS64.1
PEG (NY)N/A
PEG (5Y)2.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 9.98% | ||
| ROCE | 7.84% | ||
| ROIC | 6.24% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 6.9% | ||
| OM | 24.01% | ||
| PM (TTM) | 12.86% | ||
| GM | 31.87% | ||
| 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-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.84 | ||
| Cap/Depr | 494.72% | ||
| Cap/Sales | 62.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.5 |
F-Score5
WACC8.07%
ROIC/WACC0.77
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)1.5%
EPS 3Y11.28%
EPS 5Y8.62%
EPS Q2Q%-3.44%
EPS Next Y-2.39%
EPS Next 2Y2.5%
EPS Next 3Y4.56%
EPS Next 5Y6.37%
Revenue 1Y (TTM)-0.38%
Revenue growth 3Y5.44%
Revenue growth 5Y6.29%
Sales Q2Q%1.25%
Revenue Next Year-0.98%
Revenue Next 2Y1.77%
Revenue Next 3Y3.07%
Revenue Next 5Y5.98%
EBIT growth 1Y2.3%
EBIT growth 3Y9.05%
EBIT growth 5Y6.27%
EBIT Next Year69.58%
EBIT Next 3Y25.04%
EBIT Next 5Y18.31%
FCF growth 1Y-533.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.32%
OCF growth 3Y2.95%
OCF growth 5Y4.19%