NYSE:APD

Stock Analysis Report

Air Products and Chemicals

Executive Summary

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Air Products and Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.1%

APD

1.3%

US Chemicals

1.8%

US Market


1 Year Return

36.8%

APD

-5.3%

US Chemicals

7.3%

US Market

Return vs Industry: APD exceeded the US Chemicals industry which returned -5.3% over the past year.

Return vs Market: APD exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

APDIndustryMarket
7 Day-0.1%1.3%1.8%
30 Day-3.3%-1.5%-0.7%
90 Day-4.5%-1.5%0.06%
1 Year40.1%36.8%8.5%-5.3%9.7%7.3%
3 Year72.0%59.5%40.8%15.1%46.3%36.9%
5 Year102.4%65.5%43.7%12.7%64.5%46.5%

Price Volatility Vs. Market

How volatile is Air Products and Chemicals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Air Products and Chemicals undervalued compared to its fair value and its price relative to the market?

27.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: APD ($214.37) is trading above our estimate of fair value ($200.6)

Significantly Undervalued: APD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: APD is poor value based on its PE Ratio (27.6x) compared to the Chemicals industry average (18.9x).

PE vs Market: APD is poor value based on its PE Ratio (27.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: APD is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: APD is overvalued based on its PB Ratio (4.1x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Air Products and Chemicals forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APD's forecast earnings growth (12.4% per year) is above the savings rate (2.7%).

Earnings vs Market: APD's earnings (12.4% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: APD's earnings are forecast to grow, but not significantly.

Revenue vs Market: APD's revenue (9.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: APD's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: APD's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

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

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: APD's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: APD's earnings growth over the past year (15.8%) exceeds its 5-year average (9.9% per year).

Earnings vs Industry: APD earnings growth over the past year (15.8%) exceeded the Chemicals industry -2.4%.


Return on Equity

High ROE: APD's Return on Equity (14.9%) is considered low.


Return on Assets

ROA vs Industry: APD has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: APD's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Air Products and Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: APD's short term assets ($4.9B) exceeds its short term liabilities ($2.2B)

Long Term Liabilities: APD's short term assets (4.9B) do not cover its long term liabilities (5.7B)


Debt to Equity History and Analysis

Debt Level: APD's debt to equity ratio (32.6%) is considered satisfactory

Reducing Debt: APD's debt to equity ratio has reduced from 75.2% to 32.6% over the past 5 years.

Debt Coverage: APD's debt is well covered by operating cash flow (70.6%).

Interest Coverage: APD's interest payments on its debt are well covered by EBIT (21.9x coverage).


Balance Sheet

Inventory Level: APD has a high level of physical assets or inventory.

Debt Coverage by Assets: APD's debt is covered by short term assets (assets are 1.284140x debt).


Next Steps

Dividend

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

2.16%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: APD's dividend (2.16%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: APD's dividend (2.16%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: APD's dividends per share have been stable in the past 10 years.

Growing Dividend: APD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), APD's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APD's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Seifi Ghasemi (75yo)

5.3yrs

Tenure

US$13,941,507

Compensation

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 Of ...


CEO Compensation Analysis

Compensation vs. Market: Seifi's total compensation ($USD13.94M) is about average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Seifi's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: APD's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

68.5yo

Average Age

Experienced Board: APD's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: APD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$4,543,20026 Jul 19
Seifollah Ghasemi
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares20,000
Max PriceUS$227.16
SellUS$614,83022 May 19
Russell Flugel
EntityIndividual
Role
Chief Accounting Officer
SVP, Corporate Controller & Principal Accounting Officer
Shares2,970
Max PriceUS$207.01
BuyUS$31,95114 Nov 18
Charles Cogut
EntityIndividual
Shares200
Max PriceUS$159.79
BuyUS$3,202,20013 Nov 18
Seifollah Ghasemi
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares20,000
Max PriceUS$160.11

Ownership Breakdown


Management Team

  • Seifi Ghasemi (75yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$13.94m
  • Sean Major (55yo)

    Executive VP

    • Tenure: 2.4yrs
    • Compensation: US$2.27m
  • Richard Boocock

    Senior VP

    • Tenure: 0.8yrs
  • Michael Crocco (55yo)

    Executive VP & CFO

    • Tenure: 6.7yrs
    • Compensation: US$3.94m
  • Samir Serhan (58yo)

    Executive Vice President

    • Tenure: 2.9yrs
    • Compensation: US$3.13m
  • Simon Moore

    Vice President of Investor Relations & Corporate Relations

    • Tenure: 2.9yrs
  • Russ Flugel (49yo)

    SVP, Corporate Controller & Principal Accounting Officer

    • Tenure: 4.4yrs
  • Victoria Brifo

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.3yrs
  • William Karlson

    Executive Director of Technology

    • Tenure: 0.9yrs
  • Katie McDonald

    Vice President of Corporate Communications

    • Tenure: 0.8yrs

Board Members

  • Seifi Ghasemi (75yo)

    Chairman

    • Tenure: 5.3yrs
    • Compensation: US$13.94m
  • Margie McGlynn (60yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: US$260.16k
  • Matthew Paull (68yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$288.90k
  • Ed Monser (69yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$280.16k
  • Chad Deaton (67yo)

    Lead Director

    • Tenure: 5.3yrs
    • Compensation: US$290.16k
  • Santiago Zaldumbide (77yo)

    Member of European Advisory Council

    • Tenure: 0yrs
  • Andrew Wood

    Member of European Advisory Council

    • Tenure: 0yrs
  • Jurgen Krumnow

    Member of European Advisory Council

    • Tenure: 0yrs
  • Patrick Faure

    Member of European Advisory Council

    • Tenure: 0yrs
  • Graham Boyce

    Member of European Advisory Council

    • Tenure: 0yrs

Company Information

Air Products and Chemicals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Air Products and Chemicals, Inc.
  • Ticker: APD
  • Exchange: NYSE
  • Founded: 1940
  • Industry: Industrial Gases
  • Sector: Materials
  • Market Cap: US$47.238b
  • Shares outstanding: 220.36m
  • Website: https://www.airproducts.com

Number of Employees


Location

  • Air Products and Chemicals, Inc.
  • 7201 Hamilton Boulevard
  • Allentown
  • Pennsylvania
  • 18195
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
APD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
AP3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0HBHLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

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 r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:31
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.