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. APD has an excellent profitability rating, but there are some minor 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
In the past year APD was profitable.
APD had a positive operating cash flow in the past year.
Each year in the past 5 years APD has been profitable.
In the past 5 years APD always reported a positive cash flow from operatings.
1.2 Ratios
APD has a Return On Assets of 6.85%. This is in the better half of the industry: APD outperforms 80.00% of its industry peers.
APD's Return On Equity of 15.72% is fine compared to the rest of the industry. APD outperforms 74.12% of its industry peers.
APD has a better Return On Invested Capital (7.22%) 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 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
APD has a Profit Margin of 18.81%. This is amongst the best in the industry. APD outperforms 91.76% of its industry peers.
In the last couple of years the Profit Margin of APD has grown nicely.
APD's Operating Margin of 22.17% is amongst the best of the industry. APD outperforms 89.41% 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 30.55%, APD is in the better half of the industry, outperforming 63.53% 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 | 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
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.
The number of shares outstanding for APD has been increased compared to 5 years ago.
Compared to 1 year ago, APD has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that APD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, APD belongs to the top of the industry, outperforming 81.18% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that APD is somewhat dependend on debt financing.
APD has a Debt to Equity ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.07 |
ROIC/WACC0.89
WACC8.15%
2.3 Liquidity
A Current Ratio of 1.81 indicates that APD should not have too much problems paying its short term obligations.
APD has a worse Current ratio (1.81) than 61.18% of its industry peers.
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 has a better Quick ratio (1.58) than 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.
APD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.27% yearly.
The Revenue has decreased by -3.54% in the past year.
Measured over the past years, APD shows a small growth in Revenue. The Revenue has been growing by 7.13% on average per year.
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
The Earnings Per Share is expected to grow by 12.19% on average over the next years. This is quite good.
APD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.88% yearly.
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.
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 20.20 indicates a rather expensive valuation of APD.
APD's Price/Earnings ratio is in line with the industry average.
APD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.92.
A Price/Forward Earnings ratio of 17.40 indicates a rather expensive valuation of APD.
APD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.49. APD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.4 |
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 | 14.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
APD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.46
PEG (5Y)2.18
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.
APD's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| 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 (4/26/2024, 4:39:31 PM)
After market: 236.55 +0.47 (+0.2%)236.08
+1 (+0.43%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.48B
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
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.2 | ||
| Fwd PE | 17.4 | ||
| 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)2.46
PEG (5Y)2.18
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