Air Products & Chemicals Inc

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APD : NYSE : Basic Materials
$150.26 | %
Today's Range: 150.16 - 151.22
Avg. Daily Volume: 1390400.0
09/22/17 - 4:02 PM ET

Financial Analysis


AIR PRODUCTS & CHEMICALS INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AIR PRODUCTS & CHEMICALS INC has strong liquidity. Currently, the Quick Ratio is 1.83 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 33.59% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)2121.91914.5
EBITDA ($mil)653.5620.7
EBIT ($mil)436.6407.2
Net Income ($mil)101.9346.8


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)3348.7514.8
Total Assets ($mil)17853.817083.5
Total Debt ($mil)3926.05683.7
Equity ($mil)9412.47045.4


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin40.1842.19
EBITDA Margin30.7932.42
Operating Margin20.5821.27
Sales Turnover0.470.47
Return on Assets16.383.4
Return on Equity11.2816.4
Debt Q3 FY17 Q3 FY16
Current Ratio2.20.92
Debt/Capital0.290.45
Interest Expense32.939.1
Interest Coverage13.2710.41


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)217.96216.55
Div / share0.950.86
EPS0.471.15
Book value / share43.1832.53
Institutional Own % n/a n/a
Avg Daily Volume1341570.01282423.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 47.63 for the Chemicals industry and a premium compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 3.48 indicates a premium versus the S&P 500 average of 3.10 and a discount versus the industry average of 4.92. 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 30.94 Peers 47.63   APD 19.31 Peers 16.70

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.

 

Premium. 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 premium 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 21.75 Peers 21.35   APD NM Peers 1.69

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 3.48 Peers 4.92   APD -8.67 Peers -25.18

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.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

APD is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
APD 3.87 Peers 2.35   APD 5.49 Peers 9.42

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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