Air Products & Chemicals Inc

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APD : NYSE : Basic Materials
$143.49 | %
Today's Range: 142.62 - 144.19
Avg. Daily Volume: 1188400.0
07/28/17 - 4:02 PM ET

Financial Analysis

AIR PRODUCTS & CHEMICALS INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. AIR PRODUCTS & CHEMICALS INC has strong liquidity. Currently, the Quick Ratio is 1.72 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 34.71% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1980.11777.4
EBITDA ($mil)595.4592.3
EBIT ($mil)383.6378.4
Net Income ($mil)2130.0-473.3

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)3292.5313.1
Total Assets ($mil)17871.516810.8
Total Debt ($mil)3843.25818.0
Equity ($mil)9317.46916.6

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin39.843.79
EBITDA Margin30.0633.32
Operating Margin19.3721.29
Sales Turnover0.490.51
Return on Assets17.743.29
Return on Equity14.0917.72
Debt Q2 FY17 Q2 FY16
Current Ratio2.030.79
Interest Expense36.436.2
Interest Coverage10.5410.45

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)217.72216.08
Div / share0.950.86
Book value / share42.7932.01
Institutional Own % n/a n/a
Avg Daily Volume1203379.01452595.0


BUY. AIR PRODUCTS & CHEMICALS INC's P/E ratio indicates a discount compared to an average of 31.04 for the Chemicals industry and a value on par with the S&P 500 average of 24.66. Conducting a second comparison, its price-to-book ratio of 3.41 indicates a premium versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 5.12. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AIR PRODUCTS & CHEMICALS INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
APD 24.29 Peers 31.04   APD 16.71 Peers 16.21

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

APD is trading at a discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
APD 21.47 Peers 20.69   APD NM Peers 4.62

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.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
APD 3.41 Peers 5.12   APD 6.56 Peers 12.97

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
APD 3.63 Peers 2.45   APD 2.29 Peers 3.78

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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