Air Products & Chemicals Inc

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APD : NYSE : Basic Materials
$134.44 up 0.05 | 0.04%
Today's Range: 132.77 - 134.64
Avg. Daily Volume: 1,578,200
10/21/16 - 4:00 PM ET

Financial Analysis

AIR PRODUCTS & CHEMICALS INC's gross profit margin for the third quarter of its fiscal year 2016 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 increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 7.12% 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 FY16 Q3 FY15
Net Sales ($mil)2434.42470.2
EBITDA ($mil)779.6713.1
EBIT ($mil)549.0480.1
Net Income ($mil)346.8318.8

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)514.8215.3
Total Assets ($mil)17083.517671.5
Total Debt ($mil)5683.75863.2
Equity ($mil)7045.47586.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin42.1340.0
EBITDA Margin32.0228.86
Operating Margin22.5519.44
Sales Turnover0.560.57
Return on Assets3.45.87
Return on Equity20.6913.72
Debt Q3 FY16 Q3 FY15
Current Ratio0.921.06
Interest Expense39.040.6
Interest Coverage14.0811.83

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)216.55214.98
Div / share0.860.81
Book value / share32.5335.29
Institutional Own % n/a n/a
Avg Daily Volume1434513.01048044.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.40 for the Chemicals industry and a discount compared to the S&P 500 average of 24.47. Conducting a second comparison, its price-to-book ratio of 4.07 indicates a premium versus the S&P 500 average of 2.71 and a significant discount versus the industry average of 5.65. 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 19.77 Peers 23.40   APD 11.21 Peers 15.72

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.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
APD 16.68 Peers 19.49   APD 0.72 Peers 1.81

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

APD is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
APD 4.07 Peers 5.65   APD 39.66 Peers 96.95

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 3.01 Peers 2.23   APD -6.05 Peers -7.15

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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