Air Products & Chemicals Inc

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APD : NYSE : Basic Materials
$148.84 up 0.49 | 0.33%
Today's Range: 148.06 - 149.45
Avg. Daily Volume: 1,320,400
09/27/16 - 4:01 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
Debt/Capital0.450.44
Interest Expense39.040.6
Interest Coverage14.0811.83


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)216.55214.98
Div / share0.860.81
EPS1.631.48
Book value / share32.5335.29
Institutional Own % n/a n/a
Avg Daily Volume1334933.01024896.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.75 for the Chemicals industry and a discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 4.55 indicates a significant premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 5.71. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
APD 22.14 Peers 24.75   APD 12.55 Peers 15.78

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
APD 18.10 Peers 20.26   APD 0.80 Peers 1.89

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
APD 4.55 Peers 5.71   APD 39.66 Peers 93.43

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 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
APD 3.37 Peers 2.31   APD -6.05 Peers -7.33

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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