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
Debt/Capital0.290.46
Interest Expense36.436.2
Interest Coverage10.5410.45


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)217.72216.08
Div / share0.950.86
EPS1.391.28
Book value / share42.7932.01
Institutional Own % n/a n/a
Avg Daily Volume1203379.01452595.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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