AIR PRODUCTS & CHEMICALS INC's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. AIR PRODUCTS & CHEMICALS INC has weak liquidity. Currently, the Quick Ratio is 0.57 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.43% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||2470.2||2634.6|
|Net Income ($mil)||318.8||314.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||215.3||337.6|
|Total Assets ($mil)||17671.5||18316.2|
|Total Debt ($mil)||5863.2||6136.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||39.95||36.24|
|Return on Assets||5.87||5.59|
|Return on Equity||13.65||13.44|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||214.77||213.02|
|Div / share||0.81||0.77|
|Book value / share||35.32||36.13|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1105815.0||1004199.0|
BUY. AIR PRODUCTS & CHEMICALS INC's P/E ratio indicates a premium compared to an average of 23.21 for the Chemicals industry and a premium compared to the S&P 500 average of 21.25. Conducting a second comparison, its price-to-book ratio of 4.03 indicates a premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 5.61. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, AIR PRODUCTS & CHEMICALS INC seems to be trading at a premium to investment alternatives within the industry.
|APD 29.84||Peers 23.21||APD 13.53||Peers 14.35|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
APD is trading at a significant premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
APD is trading at a valuation on par to its peers.
|APD 19.69||Peers 17.98||APD 0.74||Peers 5.03|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
APD is trading at a premium to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
APD trades at a significant discount to its peers.
|APD 4.03||Peers 5.61||APD -1.04||Peers 34.18|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
APD is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, APD is expected to significantly trail its peers on the basis of its earnings growth rate.
|APD 3.02||Peers 2.24||APD -2.19||Peers 2.77|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
APD is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
APD significantly trails its peers on the basis of sales growth
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