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

2.7%

NYSE:APD

2.1%

US Chemicals

2.9%

US Market


1 Year Return

39.1%

NYSE:APD

-15.1%

US Chemicals

0.2%

US Market

APD outperformed the Chemicals industry which returned -16.1% over the past year.

APD outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

APDIndustryMarket
7 Day2.7%2.1%2.9%
30 Day1.2%-4.8%-2.3%
90 Day12.0%-0.4%3.1%
1 Year42.6%39.1%-1.7%-15.1%2.4%0.2%
3 Year72.0%47.3%34.8%10.0%41.7%32.4%
5 Year110.4%71.9%31.1%2.4%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Air Products and Chemicals's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Air Products and Chemicals's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Air Products and Chemicals is poor value based on expected growth next year.


Price Based on Value of Assets

Air Products and Chemicals is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

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

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Air Products and Chemicals's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).

Air Products and Chemicals's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

Air Products and Chemicals's revenue growth is expected to exceed the United States of America market average.

Air Products and Chemicals's earnings growth is positive but not above the United States of America market average.

Air Products and Chemicals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Air Products and Chemicals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 (15.8% vs 9.9%)

Air Products and Chemicals's earnings growth has exceeded the US Chemicals industry average in the past year (15.8% vs -2.4%).


Return on Equity

Air Products and Chemicals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Air Products and Chemicals used its assets more efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Air Products and Chemicals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Air Products and Chemicals's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Air Products and Chemicals's level of debt (32.6%) 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 (75.2% vs 32.6% today).

Debt is well covered by operating cash flow (70.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 21.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

2.13%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Air Products and Chemicals's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Air Products and Chemicals's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

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

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 (2.1x coverage).


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?

2.5yrs

Average management tenure


CEO

Seifi Ghasemi (75yo)

5.1yrs

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

Seifi's remuneration is about average for companies of similar size in United States of America.

Seifi's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

55yo

Average Age

The tenure for the Air Products and Chemicals management team is about average.


Board Age and Tenure

5.9yrs

Average Tenure

68.5yo

Average Age

The tenure for the Air Products and Chemicals board of directors is about average.


Insider Trading

More shares have been bought than sold by Air Products and Chemicals individual insiders 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: 5.1yrs
    • Compensation: US$13.94m
  • Sean Major (55yo)

    Executive VP

    • Tenure: 2.3yrs
    • Compensation: US$2.27m
  • Richard Boocock

    Senior VP

    • Tenure: 0.6yrs
  • Michael Crocco (55yo)

    Executive VP & CFO

    • Tenure: 6.5yrs
    • Compensation: US$3.94m
  • Samir Serhan (58yo)

    Executive Vice President

    • Tenure: 2.8yrs
    • Compensation: US$3.13m
  • Simon Moore

    Vice President of Investor Relations & Corporate Relations

    • Tenure: 2.8yrs
  • Russ Flugel (49yo)

    SVP, Corporate Controller & Principal Accounting Officer

    • Tenure: 4.3yrs
  • Victoria Brifo

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.1yrs
  • William Karlson

    Executive Director of Technology

    • Tenure: 0.8yrs
  • Katie McDonald

    Vice President of Corporate Communications

    • Tenure: 0.6yrs

Board Members

  • Seifi Ghasemi (75yo)

    Chairman

    • Tenure: 5.1yrs
    • Compensation: US$13.94m
  • Margie McGlynn (60yo)

    Director

    • Tenure: 14.5yrs
    • Compensation: US$260.16k
  • Matthew Paull (68yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$288.90k
  • Ed Monser (69yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$280.16k
  • Chad Deaton (67yo)

    Lead Director

    • Tenure: 5.1yrs
    • Compensation: US$290.16k
  • Santiago Zaldumbide (77yo)

    Member of European Advisory Council

    • Tenure: 0.0yrs
  • Andrew Wood

    Member of European Advisory Council

    • Tenure: 0.0yrs
  • Jurgen Krumnow

    Member of European Advisory Council

    • Tenure: 0.0yrs
  • Patrick Faure

    Member of European Advisory Council

    • Tenure: 0.0yrs
  • Graham Boyce

    Member of European Advisory Council

    • Tenure: 0.0yrs

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$50.382b
  • 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
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 Analysis2019/08/21 23:31
End of Day Share Price2019/08/21 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.