Air Products and Chemicals Inc.
Find Ratings ReportsAIR PRODUCTS & CHEMICALS INC's gross profit margin for the first quarter of its fiscal year 2024 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. AIR PRODUCTS & CHEMICALS INC has average liquidity. Currently, the Quick Ratio is 1.31 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 6.72% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 2997.4 | 3174.7 |
EBITDA ($mil) | 1015.3 | 965.1 |
EBIT ($mil) | 666.1 | 643.6 |
Net Income ($mil) | 609.3 | 572.2 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 2234.4 | 3150.6 |
Total Assets ($mil) | 34118.2 | 28278.3 |
Total Debt ($mil) | 12742.8 | 8685.2 |
Equity ($mil) | 14873.0 | 13935.7 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 42.68 | 38.55 |
EBITDA Margin | 33.87 | 30.39 |
Operating Margin | 22.22 | 20.27 |
Sales Turnover | 0.36 | 0.46 |
Return on Assets | 6.85 | 8.01 |
Return on Equity | 15.67 | 16.18 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 1.81 | 1.93 |
Debt/Capital | 0.46 | 0.38 |
Interest Expense | 108.6 | 56.3 |
Interest Coverage | 6.13 | 11.43 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 222.3 | 222.08 |
Div / share | 1.75 | 1.62 |
EPS | 2.73 | 2.57 |
Book value / share | 66.9 | 62.75 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1767862.0 | 1142125.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.66 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, AIR PRODUCTS & CHEMICALS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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APD 23.46 | Peers 85.83 | APD 17.50 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. APD is trading at a significant discount to its peers. |
Discount. 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 significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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APD 18.23 | Peers 18.08 | APD 1.20 | Peers 1.16 | |||||||||||||||||||||
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. |
Average. 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 valuation on par to its peers. |
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Price/Book |
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Earnings Growth |
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APD 3.66 | Peers 19.07 | APD 3.15 | Peers 12.58 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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APD 4.39 | Peers 84.44 | APD -3.55 | Peers 42.35 | |||||||||||||||||||||
Discount. 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 discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. APD significantly trails its peers on the basis of sales growth. |
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