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Air Products and Chemicals

NYSE:APD
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
APD
NYSE
$49B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The last earnings update was 56 days ago. More info.


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APD Share Price and Events
7 Day Returns
0.2%
NYSE:APD
0.1%
US Chemicals
1.2%
US Market
1 Year Returns
39.9%
NYSE:APD
-10.5%
US Chemicals
2.3%
US Market
APD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Air Products and Chemicals (APD) 0.2% 7.3% 17.7% 39.9% 53.6% 70.1%
US Chemicals 0.1% 1.9% -6.9% -10.5% 17.2% 6.6%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • APD outperformed the Chemicals industry which returned -10.5% over the past year.
  • APD outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
APD
Industry
5yr Volatility vs Market

APD Value

 Is Air Products and Chemicals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Air Products and Chemicals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Air Products and Chemicals.

NYSE:APD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:APD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.875 (1 + (1- 21%) (7.85%))
0.953
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.953 * 5.96%)
8.41%

Discounted Cash Flow Calculation for NYSE:APD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Air Products and Chemicals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:APD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.41%)
2019 536.48 Analyst x8 494.87
2020 930.50 Analyst x4 791.76
2021 1,236.25 Analyst x4 970.34
2022 331.00 Analyst x1 239.66
2023 2,123.00 Analyst x1 1,417.91
2024 2,484.39 Est @ 17.02% 1,530.59
2025 2,800.77 Est @ 12.73% 1,591.68
2026 3,073.38 Est @ 9.73% 1,611.14
2027 3,307.95 Est @ 7.63% 1,599.62
2028 3,511.78 Est @ 6.16% 1,566.48
Present value of next 10 years cash flows $11,814.05
NYSE:APD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,511.78 × (1 + 2.73%) ÷ (8.41% – 2.73%)
$63,540.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $63,540.33 ÷ (1 + 8.41%)10
$28,343.08
NYSE:APD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $11,814.05 + $28,343.08
$40,157.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $40,157.13 / 220.13
$182.42
NYSE:APD Discount to Share Price
Calculation Result
Value per share (USD) From above. $182.42
Current discount Discount to share price of $220.39
= -1 x ($220.39 - $182.42) / $182.42
-20.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Air Products and Chemicals is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Air Products and Chemicals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Air Products and Chemicals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:APD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $7.52
NYSE:APD Share Price ** NYSE (2019-06-19) in USD $220.39
United States of America Chemicals Industry PE Ratio Median Figure of 68 Publicly-Listed Chemicals Companies 17.96x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Air Products and Chemicals.

NYSE:APD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:APD Share Price ÷ EPS (both in USD)

= 220.39 ÷ 7.52

29.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air Products and Chemicals is overvalued based on earnings compared to the US Chemicals industry average.
  • Air Products and Chemicals is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Air Products and Chemicals's expected growth come at a high price?
Raw Data
NYSE:APD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
13%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.26x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:APD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 29.3x ÷ 13%

2.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air Products and Chemicals is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Air Products and Chemicals's assets?
Raw Data
NYSE:APD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $50.72
NYSE:APD Share Price * NYSE (2019-06-19) in USD $220.39
United States of America Chemicals Industry PB Ratio Median Figure of 94 Publicly-Listed Chemicals Companies 2.05x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NYSE:APD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:APD Share Price ÷ Book Value per Share (both in USD)

= 220.39 ÷ 50.72

4.35x

* Primary Listing of Air Products and Chemicals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Air Products and Chemicals is overvalued based on assets compared to the US Chemicals industry average.
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Value checks
We assess Air Products and Chemicals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Air Products and Chemicals has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

APD Future Performance

 How is Air Products and Chemicals expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Air Products and Chemicals expected to grow at an attractive rate?
  • Air Products and Chemicals's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Air Products and Chemicals's earnings growth is positive but not above the United States of America market average.
  • Air Products and Chemicals's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:APD Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:APD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 13%
NYSE:APD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 9.2%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 11.5%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:APD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:APD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-09-30 13,419 4,905 2,951 3
2022-09-30 12,531 4,382 2,680 3
2021-09-30 10,842 3,440 2,344 13
2020-09-30 9,948 3,214 2,099 19
2019-09-30 9,219 2,997 1,775 19
NYSE:APD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 8,970 2,725 1,652
2018-12-31 8,938 2,640 1,648
2018-09-30 8,930 2,542 1,456
2018-06-30 8,834 2,569 1,477
2018-03-31 8,697 2,330 1,150
2017-12-31 8,522 1,610 1,038
2017-09-30 8,188 1,568 1,134
2017-06-30 7,930 1,715 950
2017-03-31 7,723 1,929 1,096
2016-12-31 7,520 2,601 1,070
2016-09-30 7,504 2,661 1,100
2016-06-30 8,008 2,571 1,156

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Air Products and Chemicals's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
  • Air Products and Chemicals's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:APD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Air Products and Chemicals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:APD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-09-30 13.10 14.19 12.01 2.00
2022-09-30 11.90 12.52 11.28 2.00
2021-09-30 10.52 10.96 10.15 6.00
2020-09-30 9.42 9.65 9.14 7.00
2019-09-30 8.02 8.22 7.89 6.00
NYSE:APD Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 7.52
2018-12-31 7.50
2018-09-30 6.64
2018-06-30 6.74
2018-03-31 5.26
2017-12-31 4.76
2017-09-30 5.20
2017-06-30 4.36
2017-03-31 5.04
2016-12-31 4.93
2016-09-30 5.08
2016-06-30 5.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Air Products and Chemicals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Air Products and Chemicals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Air Products and Chemicals has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

APD Past Performance

  How has Air Products and Chemicals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Air Products and Chemicals's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Air Products and Chemicals's year on year earnings growth rate has been positive over the past 5 years.
  • Air Products and Chemicals's 1-year earnings growth exceeds its 5-year average (43.6% vs 8.5%)
  • Air Products and Chemicals's earnings growth has exceeded the US Chemicals industry average in the past year (43.6% vs 9.2%).
Earnings and Revenue History
Air Products and Chemicals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Air Products and Chemicals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:APD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 8,969.60 1,652.40 743.50 67.30
2018-12-31 8,937.60 1,647.50 747.30 64.90
2018-09-30 8,930.20 1,455.60 753.10 64.50
2018-06-30 8,834.40 1,476.90 763.30 57.30
2018-03-31 8,697.30 1,150.40 758.80 56.90
2017-12-31 8,521.70 1,038.40 742.00 57.20
2017-09-30 8,187.60 1,134.40 715.40 57.60
2017-06-30 7,930.00 949.60 701.30 62.20
2017-03-31 7,722.60 1,095.70 685.60 66.30
2016-12-31 7,519.90 1,070.20 675.80 69.70
2016-09-30 7,503.70 1,099.50 689.20 71.80
2016-06-30 8,007.60 1,156.10 710.00 86.70
2016-03-31 8,563.30 1,226.30 783.10 101.40
2015-12-31 9,200.40 1,241.00 855.00 118.60
2015-09-30 7,824.30 933.30 773.00 76.40
2015-06-30 10,122.50 1,041.20 982.40 145.10
2015-03-31 10,286.90 1,034.70 1,012.90 145.50
2014-12-31 10,454.30 1,024.60 1,036.60 143.30
2014-09-30 10,439.00 994.60 1,054.70 139.80
2014-06-30 10,348.50 1,034.80 1,086.60 135.10
2014-03-31 10,261.20 1,008.60 1,085.90 134.80
2013-12-31 10,163.50 1,014.40 1,089.10 133.90
2013-09-30 10,180.40 1,004.20 1,076.40 133.70
2013-06-30 10,199.70 991.10 1,047.60 135.20
2013-03-31 9,992.50 1,060.50 1,006.70 134.20
2012-12-31 9,852.60 1,050.20 977.50 131.60
2012-09-30 9,611.70 999.20 946.80 126.40
2012-06-30 9,512.10 1,166.30 937.50 122.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Air Products and Chemicals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Air Products and Chemicals used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.
  • Air Products and Chemicals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Air Products and Chemicals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Air Products and Chemicals has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

APD Health

 How is Air Products and Chemicals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Air Products and Chemicals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Air Products and Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Air Products and Chemicals's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Air Products and Chemicals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Air Products and Chemicals Company Filings, last reported 2 months ago.

NYSE:APD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 11,503.40 3,806.50 2,754.60
2018-12-31 11,203.40 3,778.30 2,962.20
2018-09-30 11,176.30 3,826.50 3,004.30
2018-06-30 10,810.00 3,897.40 3,009.80
2018-03-31 10,693.20 3,644.40 3,209.40
2017-12-31 10,321.20 3,569.00 3,136.70
2017-09-30 10,185.50 3,996.70 3,688.70
2017-06-30 9,509.90 3,949.50 3,381.00
2017-03-31 9,420.20 3,866.90 3,330.10
2016-12-31 7,261.10 4,333.50 687.80
2016-09-30 7,213.40 5,223.60 1,313.10
2016-06-30 7,180.20 5,688.40 531.90
2016-03-31 7,053.10 5,820.30 328.30
2015-12-31 7,499.00 5,817.80 298.10
2015-09-30 7,381.10 5,879.80 224.00
2015-06-30 8,009.20 5,864.00 247.40
2015-03-31 7,756.30 5,930.30 225.40
2014-12-31 7,792.00 6,120.20 264.30
2014-09-30 7,808.60 6,137.60 360.30
2014-06-30 8,197.60 6,161.20 337.60
2014-03-31 7,871.40 6,174.90 356.90
2013-12-31 7,781.40 6,178.00 387.60
2013-09-30 7,574.70 6,283.20 450.40
2013-06-30 7,063.20 6,135.00 431.60
2013-03-31 6,916.10 5,991.60 401.60
2012-12-31 6,841.90 6,055.50 545.90
2012-09-30 7,015.80 5,317.00 455.50
2012-06-30 6,647.40 4,231.00 368.50
  • Air Products and Chemicals's level of debt (33.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (78.4% vs 33.1% today).
  • Debt is well covered by operating cash flow (71.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.2x coverage).
X
Financial health checks
We assess Air Products and Chemicals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Air Products and Chemicals has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

APD Dividends

 What is Air Products and Chemicals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.11%
Current annual income from Air Products and Chemicals dividends. Estimated to be 2.22% next year.
If you bought $2,000 of Air Products and Chemicals shares you are expected to receive $42 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Air Products and Chemicals's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Air Products and Chemicals's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Upcoming dividend payment

Purchase Air Products and Chemicals before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:APD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 54 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:APD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-09-30 5.50 1.00
2022-09-30 5.24 1.00
2021-09-30 5.21 11.00
2020-09-30 4.89 15.00
2019-09-30 4.59 15.00
NYSE:APD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-14 4.640 2.192
2019-01-24 4.640 2.510
2018-11-20 4.400 2.793
2018-07-19 4.400 2.718
2018-05-16 4.400 2.730
2018-01-25 4.400 2.688
2017-11-14 3.800 2.312
2017-07-20 3.800 2.526
2017-05-18 3.800 2.633
2017-01-27 3.800 2.725
2016-07-21 3.440 2.378
2016-05-19 3.440 2.393
2016-03-17 3.440 2.384
2015-11-19 3.240 2.487
2015-09-16 3.240 2.383
2015-05-21 3.240 2.301
2015-03-19 3.240 2.164
2014-11-20 3.080 2.090
2014-07-18 3.080 2.335
2014-05-15 3.080 2.474
2014-03-20 3.080 2.598
2013-11-21 2.840 2.529
2013-09-19 2.840 2.618
2013-05-16 2.840 2.862
2013-03-21 2.840 3.252
2012-11-15 2.560 2.981
2012-09-20 2.560 3.151
2012-05-17 2.560 3.161
2012-03-15 2.560 2.917
2011-11-17 2.320 2.673
2011-09-15 2.320 2.818
2011-05-18 2.320 2.654
2011-03-17 2.320 2.534
2010-11-18 1.960 2.209
2010-09-16 1.960 2.335
2010-05-20 1.960 2.733
2010-03-18 1.960 2.638
2009-11-19 1.800 2.330
2009-09-17 1.800 2.245

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Air Products and Chemicals's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Air Products and Chemicals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Air Products and Chemicals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Air Products and Chemicals has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

APD Management

 What is the CEO of Air Products and Chemicals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Seifi Ghasemi
COMPENSATION $13,941,507
AGE 74
TENURE AS CEO 4.9 years
CEO Bio

Mr. Seifollah Ghasemi, also known as Seifi, has been the Chairman, Chief Executive Officer and President of Air Products and Chemicals, Inc. since July 1, 2014. Mr. Ghasemi serves as the Chief Executive Officer of Rockwood Pigments NA Inc. Mr. Ghasemi served as the Senior Vice President and General Manager of Tonnage Gases, Equipment and Energy and China President of Air Products and Chemicals, Inc. since August 2014. He served as the Chief Executive Officer of Rockwood Specialties Group Inc., from November 2001 to July 1, 2014. He served as the Chief Executive Officer of Rockwood Holdings, Inc., from November 2001 to June 30, 2014 and its President until June 30, 2014. From 1997 to 2001, he was employed at GKN plc and served as its Managing Director of Powder Metallurgy. From 1979 to 1997, he was with The BOC Group. He served as the Chief Executive Officer of GKN Sinter Metals Inc. and Hoeganes Corporation. He served as the Chief Executive Officer of BOC Process Plants LTD. and Cryostar. From 1987 to 1997, he served at BOC Gases, serving as President of BOC Gases, Americas from 1993 to 1997. He has been the Non-Executive Chairman of Versum Materials, Inc. since September 29, 2016. He serves as the Chairman of the Supervisory Board at Chemetall GmbH. He served as Chairman of Rockwood Holdings, Inc. since November 2001 until January 01, 2015. He served as Chairman of Rockwood Holding Company. He served as Chairman of the Supervisory Board at CeramTec GmbH (formerly, CeramTec AG). He has been Chairman of Rockwood Specialties Group, Inc. at BYK Additives, Inc. since November 2001. He served as the Chairman of BOC Process Plants LTD. and Cryostar, GKN Sinter Metals Inc. and Hoeganes Corporation. He serves as Director of INOX Air Products Private Limited. Mr. Ghasemi has been a Director of Air Products and Chemicals Inc. since September 2013. He has been a Director of Rockwood Holdings, Inc., and Rockwood Specialties Group Inc., a parent company of OM Group Ultra Pure Chemicals Limited (also known as Rockwood Electronic Materials Limited) since November 2001. He served as a Director of EnerSys from July 12, 2010 to July 30, 2014. He served as a Director of the Main Board of GKN PLC from 1997 to 2001. He served as a Director of GKN Sinter Metals Inc. and Hoeganes Corporation. He was a Member of the Board of Directors of the Main Board of BOC Group, plc from 1995 to 1997. Mr. Ghasemi has deep experience in the specialty chemicals industry. His prior executive leadership of an international specialty chemicals and materials company provides the Board with broad experience in navigating many of the challenges Versum Materials faces, such as portfolio management, strategic planning, talent management and international operations. Mr. Ghasemi received his Bachelor of Science degree from the Abadan Institute of Technology and a Masters of Science degree in Mechanical Engineering from Stanford University. He was awarded an honorary Doctor of Science degree from Lafayette College in 2017 and an honorary Doctor of Engineering degree from Stevens Institute of Technology in 2018. Mr. Ghasemi is a Member of The Business Council, an association of the Chief Executive Officers of the world’s most important business enterprises. He also was the recipient of the 2017 biennial International Palladium Medal from the Société de Chimie Industrielle for his distinguished contributions to the chemical industry.

CEO Compensation
  • Seifi's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Seifi's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Air Products and Chemicals management team in years:

2.3
Average Tenure
54
Average Age
  • The tenure for the Air Products and Chemicals management team is about average.
Management Team

Seifi Ghasemi

TITLE
Chairman
COMPENSATION
$14M
AGE
74
TENURE
4.9 yrs

Michael Crocco

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
54
TENURE
6.3 yrs

Sean Major

TITLE
Executive VP
COMPENSATION
$2M
AGE
54
TENURE
2.1 yrs

Samir Serhan

TITLE
Executive Vice President
COMPENSATION
$3M
AGE
57
TENURE
2.6 yrs

Russ Flugel

TITLE
SVP, Corporate Controller & Principal Accounting Officer
AGE
48
TENURE
4.1 yrs

William Karlson

TITLE
Executive Director of Technology
TENURE
0.6 yrs

Richard Boocock

TITLE
Senior VP
TENURE
0.4 yrs

Simon Moore

TITLE
Vice President of Investor Relations & Corporate Relations
TENURE
2.6 yrs

Katie McDonald

TITLE
Vice President of Corporate Communications
TENURE
0.4 yrs

Victoria Brifo

TITLE
Senior VP & Chief Human Resources Officer
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the Air Products and Chemicals board of directors in years:

5.8
Average Tenure
67.5
Average Age
  • The tenure for the Air Products and Chemicals board of directors is about average.
Board of Directors

Seifi Ghasemi

TITLE
Chairman
COMPENSATION
$14M
AGE
74
TENURE
4.9 yrs

Chad Deaton

TITLE
Lead Director
COMPENSATION
$290K
AGE
66
TENURE
4.9 yrs

Ed Monser

TITLE
Director
COMPENSATION
$280K
AGE
68
TENURE
5.8 yrs

Matthew Paull

TITLE
Director
COMPENSATION
$289K
AGE
67
TENURE
5.8 yrs

Margie McGlynn

TITLE
Director
COMPENSATION
$260K
AGE
59
TENURE
14.3 yrs

Andrew Wood

TITLE
Member of European Advisory Council

Jurgen Krumnow

TITLE
Member of European Advisory Council

Patrick Faure

TITLE
Member of European Advisory Council

Santiago Zaldumbide

TITLE
Member of European Advisory Council
AGE
76

Graham Boyce

TITLE
Member of European Advisory Council
Who owns this company?
Recent Insider Trading
  • Air Products and Chemicals insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. May 19 Sell Russell Flugel Individual 21. May 19 21. May 19 -2,970 $207.01 $-614,830
14. Nov 18 Buy Charles Cogut Individual 13. Nov 18 13. Nov 18 200 $159.79 $31,951
13. Nov 18 Buy Seifollah Ghasemi Individual 12. Nov 18 12. Nov 18 20,000 $160.11 $3,202,200
X
Management checks
We assess Air Products and Chemicals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Air Products and Chemicals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

APD News

Simply Wall St News

Is Air Products and Chemicals, Inc. (NYSE:APD) Undervalued After Accounting For Its Future Growth?

According to the analysts covering the company, the following few years should bring about good growth prospects for Air Products and Chemicals. … APD is trading at price-to-earnings (PE) ratio of 28.89x, which suggests that Air Products and Chemicals is overvalued based on current earnings compared to the Chemicals industry average of 17.4x , and overvalued compared to the US market average ratio of 17.45x. … But, to properly examine the value of a high-growth stock such as Air Products and Chemicals, we must reflect its earnings growth into the valuation.

Simply Wall St -

Read This Before Selling Air Products and Chemicals, Inc. (NYSE:APD) Shares

So we'll take a look at whether insiders have been buying or selling shares in Air Products and Chemicals, Inc. … Air Products and Chemicals Insiders Are Selling The Stock Over the last three months, we've seen significant insider selling at Air Products and Chemicals. … Air Products and Chemicals insiders own about US$115m worth of shares (which is 0.3% of the company).

Simply Wall St -

Are Air Products and Chemicals, Inc.’s (NYSE:APD) Returns On Investment Worth Your While?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Air Products and Chemicals: 0.12 = US$2.0b ÷ (US$19b - US$2.1b) (Based on the trailing twelve months to March 2019.) Therefore, Air Products and Chemicals has an ROCE of 12%. … What Are Current Liabilities, And How Do They Affect Air Products and Chemicals's ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Is Air Products and Chemicals, Inc.'s (NYSE:APD) 2.3% Dividend Worth Your Time?

Some simple analysis can reduce the risk of holding Air Products and Chemicals for its dividend, and we'll focus on the most important aspects below. … Air Products and Chemicals has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Air Products and Chemicals, Inc. (NYSE:APD): Has Recent Earnings Growth Beaten Long-Term Trend?

(NYSE:APD) released its most recent earnings update (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … Did APD's recent earnings growth beat the long-term trend and the industry. … APD's trailing twelve-month earnings (from 31 March 2019) of US$1.7b has.

Simply Wall St -

Should You Worry About Air Products and Chemicals, Inc.'s (NYSE:APD) CEO Salary Level?

In 2014 Seifi Ghasemi was appointed CEO of Air Products and Chemicals, Inc. … First, this article will compare CEO compensation with compensation at other large companies. … How Does Seifi Ghasemi's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should You Be Adding Air Products and Chemicals (NYSE:APD) To Your Watchlist Today?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Air Products and Chemicals (NYSE:APD). … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). … While we note Air Products and Chemicals's EBIT margins were flat over the last year, revenue grew by a solid 4.9% to US$8.9b.

Simply Wall St -

Air Products and Chemicals, Inc. (NYSE:APD) Has A ROE Of 15%

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Air Products and Chemicals, Inc. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is It Too Late To Consider Buying Air Products and Chemicals, Inc. (NYSE:APD)?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock

Simply Wall St -

Only 4 Days Left Before Air Products and Chemicals, Inc. (NYSE:APD) Will Be Trading Ex-Dividend

Investors who want to cash in on Air Products and Chemicals, Inc.'s (NYSE:APD) upcoming dividend of US$1.16 per share have only 4 days left to buy the shares before its ex-dividend date, 29 March 2019, in time for dividends payable on the 13 May 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Air Products and Chemicals's latest financial data to analyse its dividend characteristics. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

APD Company Info

Description

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, argon, and rare gases; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas, and specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including refining, chemical, gasification, metals, electronics, manufacturing, food and beverage, magnetic resonance imaging, energy production and refining, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. Air Products and Chemicals, Inc. was founded in 1940 and is headquartered in Allentown, Pennsylvania.

Details
Name: Air Products and Chemicals, Inc.
APD
Exchange: NYSE
Founded: 1940
$48,515,015,118
220,132,561
Website: http://www.airproducts.com
Address: Air Products and Chemicals, Inc.
7201 Hamilton Boulevard,
Allentown,
Pennsylvania, 18195,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE APD Common Stock New York Stock Exchange US USD 02. Jan 1968
DB AP3 Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0HBH Common Stock London Stock Exchange GB USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
16,150
Air Products and Chemicals employees.
Industry
Industrial Gases
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:32
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/04/24
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.